- Net Income $29.1 million ($0.68 per share) up from $5.7 million ($0.13 per share)
- Combined Radio and Television revenues up 6%
- Combined Radio and Television segment profit up 15%
- Consolidated segment profit up 9% to $62.4 million
(January 13, 2005 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.NV.B; NYSE: CJR) announced first quarter results today, led by an 8% increase in Radio advertising and a 6% increase in Television advertising. Radio segment profit increased by 18% while Television segment profit was up 13%.
“Our media properties performed exceedingly well in the quarter. We continued our positive momentum on Television, and Radio made an excellent contribution both in terms of top-line growth and profitability,” said John Cassaday, President and Chief Executive Officer of Corus Entertainment. “With respect to our Content division, the early ratings success of our Miss Spider’s Sunny Patch Friends property and the reaction of licensees is a positive indicator for the future.”
Consolidated revenue for the quarter was $180.6 million, down from $185.0 last year. The revenue shortfall was attributed to the Content division, which was impacted by lower merchandise sales and a weakening U.S. dollar. Consolidated segment profit was $62.4 million, up 9% from $57.3 million last year. Net income for the quarter was $29.1 or $0.68 per share compared to $5.7 million or $0.13 per share last year. Corus Television contributed quarterly revenues of $98.5 million, up from $94.2 million last year, led by advertising growth of 6%. Segment profit growth was $44.9 million, up 13% compared to $39.8 million last year. Corus Radio revenues were $65.5 million, up 8% from $60.7 million last year. Segment profit was $21.0 million, up 18% from $17.8 million last year. Revenue growth was strong in the Ontario and Quebec regions while in the West, Vancouver has started to recover from last year’s performance by posting year-over-year ad growth. Our fall BBM’s were strong in key markets and a positive sign for the fiscal year. “Our focus on growing the revenue in Radio while controlling our costs was clearly demonstrated in the first quarter with segment profit growth of 18%,” said Heather Shaw, Executive Chair of Corus Entertainment. The Content division revenues were $18.9 million, down from $30.7 million last year. The revenue shortfall was attributed to the lower U.S. dollar and lower Beyblade merchandise sales. Segment profit was $0.1 million, compared to $2.6 million last year.
Corus Entertainment Inc. is a Canadian-based media and entertainment company. Corus is a market leader in both specialty TV and Radio. Corus also owns Nelvana Limited, a leading international producer and distributor of children’s programming and products. The company’s other interests include publishing, television broadcasting and advertising services. A publicly traded company, Corus is listed on the Toronto (CJR.NV.B) and New York (CJR) Exchanges. Corus’ website can be found at www.corusentertainment.com. Corus Entertainment reports in Canadian dollars.
Certain statements in this press release may constitute forward-looking statements and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current 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; and, changes in accounting standards. Consequently, all of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. 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.
Full financial details are available on the Corus Entertainment website at www.corusentertainment.com under Investor Information.