- Earnings per share of $0.50 for fourth quarter and $2.53 for fiscal 2007
- Combined Radio and Television revenues up 5% for fourth quarter and 6% for the fiscal year
- Segment profit of $241 million up 13% for fiscal 2007
- Increased segment profit guidance range to $255 – $265 million for fiscal 2008
(October 25, 2007 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced fourth quarter and year end financial results today, led by continued revenue growth from its broadcasting businesses.
“Corus had an exceptional year in fiscal 2007,” said John Cassaday, President and Chief Executive Officer, Corus Entertainment Inc. “Our share price increased by 26%, we increased our dividend by 16% and we bought back approximately 2% of our shares. These positive outcomes for our shareholders were due to the strength of our core businesses in Radio and Television.” Mr. Cassaday added “As a result of our year end financial results and our outlook for next year, we are increasing our segment profit guidance range to $255 – $265 million for fiscal 2008”.
Fourth Quarter Results
Consolidated revenues for the fourth quarter ended August 31, 2007 were $187.2 million, up 1% from $185.0 million last year. Consolidated segment profit was $50.2 million, up 13% from $44.5 million last year. The fourth quarter of fiscal 2007 benefited from the reversal of an accrual of $4.9 million related to certain regulatory fees. Net income for the quarter was $21.2 million ($0.50 basic and $0.49 diluted), compared to net income of $46.6 million ($1.11 basic and $1.09 diluted) last year. Net income for the fourth quarter last year was positively impacted by approximately $37.0 million in income tax rate changes and other income tax items.
Corus Television contributed quarterly revenues of $104.2 million, up 8% from $96.9 million last year, led by continued specialty advertising growth of 8% and subscriber revenue growth of 5%. Quarterly segment profit increased to $35.5 million, up 3% from $34.5 million last year.
Corus Radio revenues were $66.5 million, up marginally from $66.3 million last year. Segment profit was $19.7 million, up 24% from $15.8 million last year.
Corus Content revenues were $17.7 million, down 28% from $24.5 million last year. Segment profit was $2.3 million, compared to $2.2 million last year.
Fiscal 2007 Results
Consolidated revenues for the year ended August 31, 2007 were $768.7 million, up 6% from $726.3 million last year. Consolidated segment profit was $240.9 million, up 13% from $214.1 million last year. Net income for the year was $107.0 million ($2.53 basic and $2.47 diluted), compared to $35.5 million ($0.84 basic and $0.82 diluted) last year. The prior year included a pre-tax debt refinancing loss of $132.0 million.
Corus Television, led by specialty advertising growth of 12% and subscriber growth of 8%, contributed full year revenues of $436.3 million, up 9% from $401.9 million last year. Movie Central finished the year with 883,000 subscribers, an increase of 7% from the end of last year. Segment profit for the year increased to $182.4 million, up 10% from $165.3 million last year.
Corus Radio revenues were $275.7 million for the year, up 3% from $268.4 million last year. Segment profit was $77.5 million, up 13% from $68.4 million last year.
Corus Content revenues were $61.3 million, down 4% from $63.6 million last year. Segment profit for the year was $5.4 million, up from $4.5 million last year.
“Corus had another excellent year” said Heather Shaw, Executive Chair, Corus Entertainment Inc. “We accomplished several important initiatives that position us well for the future such as securing the Cosmopolitan Television license. In addition, we gained new FM radio stations in Kitchener, Winnipeg and several cities throughout the province of Quebec. We are also excited by our new international ventures with Kidsco and qubo.”
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In 2007, the Company purchased for cancellation 769,100 Class B Non-Voting Shares at an average price of $47.36 per share. In September 2007, a further 402,100 Class B Non-Voting Shares were purchased and cancelled.
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, advertising and digital audio services, television broadcasting, children’s book publishing and children’s animation. The company’s multimedia entertainment brands include YTV, Treehouse, W Network, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107. Corus creates engaging branded entertainment experiences for its audiences across multiple platforms. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) exchanges. Experience Corus on the web at www.corusent.com.
The unaudited consolidated financial statements and accompanying notes for the year ended August 31, 2007 and Management’s Discussion and Analysis are available on the Company’s website at https://www.corusent.com/corporate/investor_information/press_releases.asp.
A conference call with Corus senior management is scheduled for October 25, 2007 at 2 p.m. ET / 1 p.m. CT / 12 p.m. MT / 11 a.m. PT. 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 is 1-866-904-6908 (North America) or 416-915-8329 (International). PowerPoint slides for the call will be posted at 1:45 p.m. ET on October 25, 2007 and can be found on the Corus Entertainment website at: https://www.corusent.com/corporate/investor_information/index.asp.
This statement contains forward-looking information and should be read subject to the following cautionary language:
To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook 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 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 arises after the date thereof or otherwise.
For further information, please contact:
President and Chief Executive Officer
Corus Entertainment Inc.
Senior Vice President and Chief Financial Officer
Corus Entertainment Inc.
Vice President, Communications
Corus Entertainment Inc.