Photo: Paul Chiasson, The canadian Press
Dragging a debt of over 900 million US dollars, the Circus has been forced to lay off 4679 employees, representing 95 per cent of its workforce, on the 19th of march last.
The interests of Quebecor to the place of the Cirque du Soleil seems logical for at least one financial analyst, if the conglomerate chooses a slimming cure of the entertainment business in order to regain the financial health.
According to Adam Shine, National Bank Financial, it would be, to the company controlled by Pierre Karl Péladeau, a strategy that is “less risky” in that the “main activities” would be optimized.
In a note sent to clients, the analyst focuses on the scenario recently presented by the chief financial officer of Quebecor, Mr. Simard, to the daily newspaper The Globe and Mail , according to which the company would focus on six shows existing in Las Vegas and four more in China, Mexico, Germany and Orlando, Florida.
This plan would mean the end of 13 shows of the tour and 21 productions under the affiliated brands as the musical Blue Man Group.
Without knowing exactly what they would be like the finances of the Cirque du Soleil if this scenario materialized, Mr. Shine believes that this plan could allow the entertainment company to generate income oscillating around 675 million US dollars and an earnings before interest, taxes, depreciation and amortization in excess of 100 million US dollars.
Last week, during an interview with The canadian Press, Mr. Péladeau had not wanted to open up his game about the strategy that he would if his business was to install to the commands of the Circus.
Quebecor proposes to participate in a rescue of the Circus and says it is ready to inject “hundreds of millions” in order to repatriate the control of the shareholders in Quebec. The company, however, has not had access to the books of the company founded by Guy Laliberté.
Dragging a debt of over 900 million US dollars, the Circus has been forced to lay off 4679 employees, representing 95 per cent of its workforce, on the 19th of march last, in addition to cancel its 44 shows across the world, due to the pandemic of COVID-19.