- Earnings per share of $0.46 for second quarter, up from a loss of $1.54 in the prior year
- Combined Radio and Television revenues up 6% for quarter and 7% for year-to-date
- Combined Radio and Television segment profit up 10% for quarter and 12% for year-to-date
- Positive segment profit from Content
(April 3, 2007 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced second quarter financial results today, led by strong revenue growth from its broadcasting businesses.
“Excellent specialty television advertising growth and solid segment profit contribution from all our divisions contributed to our strong second quarter results,” said John Cassaday, President and Chief Executive Officer, Corus Entertainment Inc.
Second Quarter Results
Consolidated revenues for the second quarter ended February 28, 2007 were $174.7 million, up 6% from $164.4 million last year. Consolidated segment profit was $47.3 million, up 12% from $42.2 million last year. Net income for the quarter was $19.5 million ($0.46 basic and $0.45 diluted), compared to a loss of $65.7 million (loss of $1.54 basic and diluted) last year. The prior year’s quarter included a pre-tax debt refinancing loss of $132.0 million.
Corus Television contributed quarterly revenues of $100.2 million, up 8% from $92.9 million last year, led by continued specialty advertising growth of 14% and subscriber revenue growth of 7%. Quarterly segment profit increased to $40.8 million, up 12% from $36.5 million last year.
Corus Radio revenues were $58.8 million, up 2% from $57.8 million last year. Segment profit was $9.9 million, up 5% from $9.5 million last year.
Corus Content revenues were $17.3 million, up 15% from $15.1 million last year. Segment profit was $2.1 million, compared to $1.8 million last year.
Consolidated revenues for the six months ended February 28, 2007 were $383.9 million, up 7% from $359.7 million last year. Consolidated segment profit was $127.2 million, up 14% from $111.9 million last year. Net income for the six months was $56.2 million ($1.33 basic and $1.30 diluted), compared to a loss of $34.3 million (loss of $0.80 basic and diluted) last year. The prior year’s six-month period included a pre-tax debt refinancing loss of $132.0 million.
Corus Television, led by specialty advertising growth of 13% and subscriber growth of 9%, contributed six-month revenues of $222.8 million, up 9% from $204.4 million last year. Movie Central increased its subscriber base from 822,000 at August 31, 2006 to 870,000 at the end of the second quarter, an increase of 9% from the same time last year. Segment profit for the six-month period increased to $101.3 million, up 14% from $89.0 million last year.
Corus Radio revenues were $134.4 million for the six-month period, up 3% from $130.2 million last year. Segment profit was $33.6 million, up 7% from $31.4 million last year.
Corus Content revenues were $29.1 million, up 3% from $28.2 million last year. Segment profit for the six-month period was $3.1 million, up from $1.8 million last year.
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In the first six months of fiscal 2007, the Company purchased for cancellation 62,900 Class B Non-Voting Shares at an average price of $41.28 per share.
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 six months ended February 28, 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 April 3, 2007 at 9 a.m. ET / 8 a.m. CT / 7 a.m. MT / 6 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 1-800-475-3716. PowerPoint slides for the call will be posted at 8:45 a.m. ET on April 3 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.