WIC COSTS RISE MORE QUICKLY THAN SALES
By Adnews Staff
Vancouver-based WIC Western International Communications blames a disappointing second quarter on the costs of layoffs and restructuring. Revenue for the three months ending Feb. 29 jumped 6% to $104.9 million. However, operating and general expenses soared 13% to $11 million. Consequently, WIC recorded a loss for the quarter of $2.2 million, compared with a profit of $221,000 in the same period the previous year. The higher expenses included a cost of $2.5 million to lay off staff at two TV stations: 30 people at CHCH in Hamilton, Ont. and another 27 at CICT in Calgary. For the first six months of the year, net earnings slipped to $5.7 million, half of what they were a year earlier. Revenue for the first half rose 5.6% to $228.1 million, while expenses increased 13.5% to $190 million. WIC owns radio and television stations, and has a 53.7% interest in Canadian Satellite Communications. WIC begins a hearing next week with the Canadian Radio-television and Telecommunications Commission. The company is seeking approval to expand CHCH's signal from its current 61% of Ontario viewers to 92%. Its bid will be opposed by Winnipeg-based CanWest Global Communications and Baton Broadcasting of Toronto. WIC has also proposed two new technology ventures. It has applied for federal licences in 66 Canadian cities for CellularVision, a wireless distribution system of digital voice, video and data services. It also has the Canadian rights to a new electronic video rental system, which delivers electronically compressed pay-per-view programming to specially equipped VCRs.