- Monthly dividend increased by 10%
- Consolidated revenues up 7% and segment profit up 1%
- Television revenue up 10% and segment profit maintained
- Radio revenue down 5% and segment profit down 11%
- Net income attributable to equity shareholders from continuing operations up 9%
(January 10, 2012 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announces its first quarter financial results.
“We are very pleased with our Q1 results and in particular, the renewed signs of strength we witnessed in the ad economy,” said John Cassaday, President and CEO of Corus Entertainment. “Double digit ad sales growth for our Women’s networks, continued growth on our Kids business powered by strong merchandising sales and strong evidence of a turnaround underway in our Vancouver Radio cluster, are all positive indicators that we are poised to achieve our growth targets in fiscal 2012.”
|Three months ended|
(unaudited in thousands of Canadian dollars except per share amounts)
|Net income attributable to equity shareholders:|
|From continuing operations||50,548||46,197|
|From discontinued operations||—||1,523|
|Basic earnings per share attributable to equity shareholders:|
|From continuing operations||$ 0.61||$ 0.57|
|From discontinued operations||$ —||$ 0.02|
|$ 0.61||$ 0.59|
(1) Reflects the disposition of the Quebec Radio operations, which occurred on February 1, 2011, as discontinued operations in all periods presented.
Adoption of IFRS
For fiscal years beginning after January 1, 2011, Canadian Generally Accepted Accounting Principles (“GAAP”), as used by publicly accountable enterprises, were fully converged to International Financial Reporting Standards (“IFRS”). Accordingly, the interim condensed consolidated financial statements for the three months ended November 30, 2011 are the first financial statements the Company has prepared in accordance with IFRS. Prior to the adoption of IFRS, for all periods up to and including the year ended August 31, 2011, the Company’s consolidated financial statements were prepared in accordance with Canadian GAAP. IFRS uses a conceptual framework similar to Canadian GAAP, but there are differences related to recognition, measurement and disclosures. For additional details regarding the IFRS restatements of fiscal 2011, please refer to the Company’s Management’s Discussion and Analysis and/or Interim Condensed Consolidated Financial Statements.
Consolidated Results from Continuing Operations
Consolidated revenues for the three months ended November 30, 2011 were $236.9 million, up 7% from $222.2 million last year. Consolidated segment profit was $91.2 million, up 1% from $90.7 million last year. Net income attributed to equity shareholders for the first quarter 2012 was $50.5 million ($0.61 basic and diluted), compared to $46.2 million ($0.57 basic and $0.56 diluted) last year.
Operational Results – Highlights
- Segment revenues increased by 10%
- Segment profit unchanged versus the prior year
- Specialty advertising revenues increased by 3%
- Subscriber revenues increased by 1%
- Merchandise, distribution and other revenues increased 66%
- Movie Central finished the quarter with 973,000 subscribers
- Segment revenues declined 5%
- Segment profit decreased 11%
(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), 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 November 30, 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 January 10, 2012 at 12:30 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 1.800.941.1366 and for local/international callers is 416.981.9030. PowerPoint slides for the call will be posted at 12:15 p.m. ET on January 10, 2012 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 specialty and pay 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.