Despite losing $89 million in 2009, cost-cutting and one-time gains led CTVglobemedia to a profitable fourth quarter, minority shareholder Torstar Corp. has reported. Torstar, which has a 20% stake in CTVgm, said its share of earnings recorded in the latest quarter to Nov. 30 was $30.3 million, against a loss of $114.2 million in the same period of 2008 when steep TV asset writedowns were posted.

CTVgm’s main assets are the CTV network, which has been buffeted by soft advertising revenues and competition from specialty channels and the Internet, and The Globe and Mail newspaper. Torstar’s share of CTVgm’s loss for full-year 2009 was $17.8 million, against a loss of $110.6 million in 2008 when an industry-wide TV ad slump kicked into gear.

The latest figures from Torstar indicate CTVgm managed to right the ship in 2009 as it cut operating costs and recovered future income tax assets and CRTC Part II fees.

After revaluing its CTVgm investment, Torstar recorded an impairment loss of $2.3 million in the fourth quarter, a huge swing from an impairment loss of $96.6 million posted in the fourth quarter of 2008.

‘The company [Torstar] determined that there was not an other than temporary decline in the value of its investment in CTVgm in 2009 and therefore no impairment loss was required to be recorded,’ Torstar said of its more favorable year-end 2009 valuation.

That contrasts with Torstar in 2008 recording a year-earlier $95.7 million writedown on its CTVgm investment.

As of Dec. 31, 2009, Torstar said it valued its investment in CTVgm at $177.4 million, against a $200 million value in 2008.