- Consolidated revenues up 8% and segment profit up 11%
- Television specialty ad growth of 14%
- Radio revenue growth of 5% led by Ontario, up 11%
- Basic earnings per share from continuing operations of $0.34 for the quarter compared to $0.18 last year ($0.30 on an adjusted basis last year)
(April 14, 2011 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.
“Strong advertising and subscriber revenue growth continued in the second quarter. Coupled with our cost containment initiatives, we delivered double digit segment profit growth in both our Radio and Television divisions, demonstrating the power of operating leverage,” said John Cassaday, President and CEO of Corus Entertainment. “We are also pleased with two major accomplishments subsequent to the quarter – exceeding our key milestone of 1 million paid pay television subscribers and the launch of OWN on March 1st.”
|Three months ended||Six months ended|
(unaudited in thousands of Canadian dollars except per share amounts)
|February 28,||February 28,|
|Net income from continuing operations||27,445||14,239||71,115||84,231|
|Basic earnings per share|
|From continuing operations||$ 0.34||$ 0.18||$ 0.87||$ 1.05|
|From discontinued operations||$ 0.05||$ 0.00||$ 0.08||$ 0.05|
|$ 0.39||$ 0.18||$ 0.95||$ 1.10|
Consolidated Results from Continuing Operations
Consolidated revenues for the three months ended February 28, 2011 were $191.1 million, up 8% from $177.5 million last year. Consolidated segment profit was $61.0 million, up 11% from $55.1 million last year. Net income for the quarter was $27.4 million ($0.34 basic and $0.33 diluted), compared to $14.2 million ($0.18 basic and diluted) last year. Net income for the prior year includes a debt refinancing cost of $14.3 million. Removing the impact of this item results in an adjusted second quarter basic earnings per share of $0.30 in the prior year.
Consolidated revenues for the six months ended February 28, 2011 were $413.2 million, up 8% from $381.7 million last year. Consolidated segment profit was $149.6 million, up 11% from $135.0 million last year. Net income for the six month period was $71.1 million ($0.87 basic and diluted), compared to a net income of $84.2 million ($1.05 basic and $1.03 diluted) last year. Net income for the six month period for the prior year includes a debt refinancing cost of $14.3 million, a $14.0 million reversal of a disputed regulatory fee accrual and a $14.2 million recovery due to income tax rate changes. Removing the impact of these items results in an adjusted six month basic earnings per share of $0.88 in the prior year.
Operational Results – Highlights
- Segment revenues increased 5% in the second quarter and 4% year-to-date
- Segment profit increased 18% in the second quarter and 5% year-to-date
- Revenues for the quarter increased 11% in Ontario and remained flat in the West
- Segment revenues increased 8% in the second quarter and 10% year-to-date
- Segment profit increased 11% in the second quarter and 14% year-to-date
- Specialty advertising revenues increased 14% in the second quarter and 15% year-to-date
- Subscriber revenues increased 6% in the second quarter and 8% year-to-date
- Movie Central finished the quarter with 989,000 subscribers, up 2% from the second quarter of 2010 (as at March 31, 2011, exceeded 1 million subscribers)
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), 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 28, 2011 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 14, 2011 at 9:00 a.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 1.800.678.2887 and for local/international callers is 416.641.6653. PowerPoint slides for the call will be posted at 8:45 a.m. ET on April 14, 2011 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, program, 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, program, 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:
President and Chief Executive Officer
Corus Entertainment Inc.
Executive Vice President and Chief Financial Officer
Corus Entertainment Inc.
Corus Entertainment Inc.