The financial results posted by media giant Canwest Global are dominating the media headlines. The conglomerate, with interests in broadcasting and newspapers, actually saw its operating profit increase by 13%.

But the balance sheet shows a net loss of $1.04 billion as it includes a $1.01 billion write-down of goodwill and broadcast licences related to its conventional television operations. Its stock dropped by 35% at the close of trading, falling to 52 cents.

Part of Canwest’s problem is its staggering $3.7 billion debt, and even the company admits it might be forced to breach some of the conditions of the loans.

It may be that Canwest has just become too big with too many diverse media interests.

It owns daily newspapers in every large urban market in Canada and its publishing arm is just about weathering the downturn in advertising.

Profits for the publishing arm for the first quarter were down by 28% compared to 2008, but it still made a profit of $73 million.  And its National Post newspaper reported a profit for the first time in its 10-year history.

On the broadcast side, operating profit jumped 10% to $76 million, largely due to its specialty television operations.

Canwest has raised the possibility of selling some of its assets so that it can meets its financial obligations, so perhaps going on a media diet might just help.