• Net income attributable to shareholders from continuing operations up 16%
  • Consolidated revenues up 8% and segment profit up 4%
  • Television revenue up 10% and segment profit up 1%
  • Radio revenue down 1% and segment profit up 2%

 

(April 12, 2012 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

“We are delighted with our second quarter results as we continued to grow our revenue and net income, despite a challenging ad sales environment,” said John Cassaday, President and CEO of Corus Entertainment.  “Our portfolio of Women’s brands delivered double digit ad growth, and our Kids business continued to grow on the strength of our Beyblade sales.  Our Radio business also experienced a return to growth in the quarter.  The introduction of ABC Spark in March represents another exciting growth opportunity for Corus, and expands on our relationship with Disney.”

 

Financial Highlights        
         
 

Three months ended

Six months ended

(unaudited in thousands of Canadian dollars except per share amounts)
February 29, February 28, February 29, February 28,
  2012  2011 2012  2011
Revenues        
  Television  163,299   148,429  348,326   315,946
  Radio (1)  42,384   42,647  94,248   97,286
   205,683   191,076  442,574   413,232
Segment profit        
  Television  60,421   59,923  140,916   140,192
  Radio (1)  9,879   9,672  26,281   28,186
  Corporate  (8,053)  (9,617)  (13,736)  (17,740)
   62,247   59,978  153,461   150,638
         
Net income attributable to shareholders:      
  From continuing operations  31,571  27,291  82,119   73,489
  From discontinued operations      —  3,501      — 5,023
  31,571  30,792 82,119  78,512
         
Basic earnings per share attributable to shareholders:        
  From continuing operations $ 0.38 $ 0.34 $ 0.99 $ 0.90
  From discontinued operations      — $ 0.04      —  $ 0.06
  $ 0.38 $ 0.38 $ 0.99 $ 0.96
         
(1) Reflects the disposition of the Quebec Radio operations, which occurred on February 1, 2011, as discontinued operations in all periods presented.

 

Consolidated Results from Continuing Operations

Consolidated revenues for the three months ended February 29, 2012 were $205.7 million, up 8% from $191.1 million last year.  Consolidated segment profit was $62.2 million, up 4% from $60.0 million last year.  Net income attributable to Shareholders for the second quarter 2012 was $31.6 million ($0.38 basic and diluted), compared to $27.3 million ($0.34 basic and $0.33 diluted) last year.

Consolidated revenues for the six months ended February 29, 2012 were $442.6 million, up 7% from $413.2 million last year.  Consolidated segment profit was $153.5 million, up 2% from $150.6 million last year.  Net income attributable to Shareholders for the six month period was $82.1 million ($0.99 basic and diluted), compared to $73.5 million ($0.90 basic and diluted) last year.

Operational Results – Highlights

Television

  • Segment revenues increased 10% in Q2 2012 and year-to-date
  • Segment profit increased 1% in Q2 2012 and year-to-date
  • Specialty advertising revenues increased 4% in Q2 2012 and year-to-date
  • Subscriber revenues consistent with the prior year in Q2 2012 and year-to-date
  • Merchandise, distribution and other revenue increased 46% in Q2 2012 and 55% year-to-date
  • Movie Central finished Q2 2012 with 988,000 paid subscribers

Radio(1)

  • Segment revenues down 1% in Q2 2012 and down 3% year-to-date
  • Segment expenses down 1% in Q2 2012 and down 2% year-to-date
  • Segment profit increased 2% in Q2 2012 and down 7% year-to-date

(1) Radio results reflect the disposition of the Quebec Radio operations, which occurred on February 1, 2011, as discontinued operations in all periods presented.

Corus Entertainment Inc. reports in Canadian dollars.

About Corus Entertainment Inc.

Corus Entertainment Inc. is a Canadian-based media and entertainment company.  Corus is a market leader in specialty television and radio with additional assets in pay television, television broadcasting, children’s book publishing and children’s animation.  The company’s multimedia entertainment brands include YTV, Treehouse, Nickelodeon (Canada), ABC Spark, W Network, OWN: Oprah Winfrey Network (Canada), CosmoTV, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press and radio stations including CKNW AM 980, 99.3 The FOX, Country 105, 630 CHED, Q107, and 102.1 the Edge.  Corus creates engaging branded entertainment experiences for its audiences across multiple platforms.  A publicly traded company, Corus is listed on the Toronto Stock Exchange (CJR.B).  Experience Corus on the web at www.corusent.com.

The unaudited consolidated financial statements and accompanying notes for the three months ended February 29, 2012 and Management’s Discussion and Analysis are available on the Company’s website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for April 12, 2012 at 1:00 p.m. ET.  While this call is directed at analysts and investors, members of the media are welcome to listen in.  The dial-in number for the conference call for North America is 1.800.734.8583 and for local/international callers is 416.981.9001.  PowerPoint slides for the call will be posted 15 minutes prior the the start of the call and can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

 

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this report contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”).  These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees, and can generally be identified by the use of the words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar expressions.  In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.  Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements.  Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements.  Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business;  and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form.  Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive.  When relying on our forward-looking statements to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

For further information, please contact:

John Cassaday
President and Chief Executive Officer
Corus Entertainment Inc.
416.479.6018

Tom Peddie
Executive Vice President and Chief Financial Officer
Corus Entertainment Inc.
416.479.6080

Sally Tindal
Director, Communications
Corus Entertainment Inc.
416.479.6107