.

  • Year-to-date free cash flow(1) up 17%
  • Net income attributable to shareholders up 7%
  • Basic earnings per share up 6% to $0.52 per share
  • Consolidated revenues and segment profit(1) down 4%
  • Strong segment profit(1) margins at Television (43%) and Radio (33%)

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

“Despite tough year-over-year comparables, we delivered a solid performance in the quarter, growing net income and earnings per share, maintaining our exceptional margins through rigorous cost controls and continuing to generate impressive free cash flow,” said John Cassaday, President and CEO of Corus Entertainment. “Our specialty advertising revenues in the quarter were impacted by soft demand in the Kids segment, which overshadowed the continued strong performance in our Women’s vertical and newer services, including ABC Spark. Looking ahead, our exceptional brands, superior programming and disciplined cost controls position us well for a recovery in the advertising market.”

 

 

Financial Highlights

Three months ended

      Nine months ended
(unaudited in thousands of Canadian dollars except per share amounts)
                May 31,                 May 31,
2012  2011 2012  2011
Revenues
  Television  154,749   161,043  503,075   476,989
  Radio (2)  49,329   50,745  143,577   148,031
 204,078   211,788  646,652   625,020
Segment profit(1)    
  Television  66,732   69,992  207,648   210,184
  Radio (2)  16,151   16,000  42,432   44,186
  Corporate  (7,227)  (7,223)  (20,963)  (24,963)
 75,656   78,769  229,117   229,407
   
Net income attributable to shareholders:    
From continuing operations  43,221   40,352  125,340   113,841
From discontinued operations  —   —  —   5,023
   43,221   40,352  125,340   118,864
     
Basic earnings per share attributable to shareholders:    
  From continuing operations $ 0.52 $ 0.49 $ 1.51 $ 1.39
  From discontinued operations  —   —  —   0.06
$ 0.52 $ 0.49 $ 1.51 $ 1.45
 
(1) See definitions and discussion under Key Performance Indicators in MD&A
(2) 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 May 31, 2012 were $204.1 million, down 4% from $211.8 million last year.  Consolidated segment profit(1) was $75.7 million, down 4% from $78.8 million last year.  Net income attributable to shareholders for the quarter was $43.2 million ($0.52 basic and $0.51 diluted), up 7% compared to $40.4 million ($0.49 basic and diluted) last year.

Consolidated revenues for the nine months ended May 31, 2012 were $646.7 million, up 3% from $625.0 million last year.  Consolidated segment profit(1) was $229.1 million, consistent with $229.4 million last year.  Net income attributable to shareholders for the nine months was $125.3 million ($1.51 basic and $1.50 diluted), up 10% compared to $113.8 million ($1.39 basic and $1.38 diluted) last year.

Operational Results – Highlights

Television

  • Segment revenues decreased 4% in Q3 2012, but increased 5% year-to-date
  • Segment profit(1) decreased 5% in Q3 2012 and 1% year-to-date
  • Specialty advertising revenues decreased 11% in the quarter and 1% year-to-date
  • Subscriber revenues decreased 2% in the quarter and 1% year-to-date
  • Merchandise, distribution and other revenue increased 8% in the quarter and 39% year-to-date
  • Movie Central finished the quarter with 975,000 subscribers

Radio(2)

  • Segment revenues decreased 3% in Q3 2012 and year-to-date
  • Segment profit(1) increased 1% in Q3 2012, but decreased 4% year-to-date

(1) See definitions and discussion under Key Performance Indicators in MD&A

(2) 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 and nine months ended May 31, 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 July 12, 2012 at 2:00 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 416.641.6705.  PowerPoint slides for the call will be posted 15 minutes prior 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