- Net income $12.9 million ($0.30 per share) up 56% from $8.3 million ($0.19 per share)
- Combined Radio and Television revenues up 10%
- Combined Radio and Television segment profit up 18%
- Increase in fiscal 2005 guidance
- 100% increase in semi-annual dividend
(Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.NV.B; NYSE: CJR) announced excellent second quarter results today, highlighted by a 12% increase in Radio advertising revenues and a 21% increase in specialty Television advertising revenues. Radio segment profit increased by 29% while Television segment profit was up 15%.
“Corus benefited from an improved competitive position and strong category growth in the two principal segments in which we compete, Radio and Television. Our flagship brand YTV had exceptional growth and our recovery in our Western Canada Radio markets continues. Pacing for Q3 continues at these strong levels. Our Content Division was profitable and is performing in line with our expectations,” said John Cassaday, President and Chief Executive Officer of Corus Entertainment Inc.
Consolidated revenues for the quarter were $155.3 million, unchanged from last year. Consolidated segment profit was $38.0 million, up 12% from $34.1 million last year. Net income for the quarter was $12.9 million, or $0.30 per share, compared to $8.3 million, or $0.19 per share, last year. Corus Television contributed quarterly revenues of $81.7 million up 9% from $75.2 million last year. Segment profit was $30.4 million up 15% compared to $26.5 million last year. Corus Radio revenues were $53.5 million, up 12% from $47.8 million last year. Segment profit was $10.0 million, up 29% from $7.7 million last year. Strong sales results were generated by all regions with Vancouver and Calgary posting significant improvements over the prior year. The Content division revenues were $20.8 million, down from $34.3 million last year, as we produced fewer total episodes and generated less revenue from Beyblade merchandise. Segment profit was $1.5 million, compared to $2.8 million last year.
Year-to-Date (“YTD”) Results
Consolidated revenues for the six-month period were $335.9 million compared to $340.0 million. Consolidated segment profit was $100.4 million compared to $91.3 million, an increase of 10%. Net income year-to-date was $42.0 million, or $0.98 per share, up 200% compared to $14.0 million, or $0.33 per share, last year. Television revenues year-to-date were $180.2 million, an increase of 6% over last year. Specialty advertising revenue growth was 14%. Television segment profit for the first six months of the year was $75.4 million, up 14% from $66.3 million. In the Radio division, year-to-date revenues were $119.1 million compared to $108.6 million last year, a 10% increase. Year-to-date segment profit was $31.0 million, an increase of 22% from $25.5 million last year. Year-to-date margins also improved by 200 basis points. In the Content division, revenues were $39.8 million compared to $65.0 million last year. The year-to-date drop in revenue is attributed to lower library sales as compared to last year, and lower merchandise revenue from sales of Beyblade. Segment profit year-to-date was $1.6 million compared to $5.4 million. The division has generated positive cash flow year-to-date, despite the significant drop in overall revenue. “We are pleased with our exceptional revenue and earnings growth in our core media properties in the first six months of the fiscal year,” added Heather Shaw, Executive Chair of Corus Entertainment Inc. “We are also pleased to announce that today the Corus Board of Directors approved a doubling of the Company’s semi-annual dividend to be paid on June 30, 2005 to 4.5 cents and 5 cents on the A and B shares respectively.”
“In light of our strong financial performance the Company is increasing its financial guidance for fiscal 2005,” said John Cassaday. “Our segment profit guidance is being increased to a range of $190 to $200 million from the previous guidance of $180 to $190 million. Free cash flow guidance is being increased to a range of $50 to $60 million from the previous guidance of $45 million.”
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 arises after the date thereof or otherwise.