- Net income $19.4 million ($0.45 per share) compared to a loss of $51.2 million (loss of $1.20 per share) last year
- Combined Radio and Television revenues up 9%
- Combined Radio and Television segment profit up 18%
(Calgary, Canada) Corus Entertainment Inc. (TSX: CJR.NV.B; NYSE: CJR) announced excellent third quarter results today, highlighted by continued strong advertising growth, including a 12% increase in radio advertising revenue and a 16% increase in specialty television advertising revenue. Radio segment profit increased by 21%, while television segment profit was up 15%. Nelvana, the Company’s content division, contributed to the momentum with positive earnings and cash flow for the fourth consecutive quarter.
“We were very pleased with our performance in the third quarter. Radio markets, both locally and nationally, continued to be strong and Corus was well positioned to benefit. Our specialty television networks achieved excellent sales growth, offsetting hockey-related losses at our local TV stations,” said John Cassaday, President and Chief Executive Officer of Corus Entertainment Inc.
Consolidated revenue for the third quarter was $171.9 million, up 5% from $163.9 million last year. Net income for the quarter was $19.4 million ($0.45 per share), compared to the net loss last year of $51.2 million (loss of $1.20 per share) which resulted from a pre-tax (non-cash) write-down of $85.0 million ($1.41 per share) in the Content division. Corus Television contributed quarterly revenue of $90.5 million, up 7% from $84.7 million last year. Segment profit was $34.7 million, up 15% compared to $30.1 million last year. Corus Radio revenue was $68.3 million, up 12% from $61.0 million last year. Segment profit was $22.2 million, up 21% from $18.3 million last year. Content revenue was $14.6 million, down from $19.9 million last year; only 28 Nelvana episodes were produced in the quarter, as compared to 40 in the previous year. In addition, Beyblade merchandise sales also declined. Segment profit was $0.1 million, compared to a loss last year of $89.3 million.
Year-to-Date (“YTD”) Results
Consolidated revenue for the nine-month period ended May 31 was $507.8 million compared to $503.8 million for the same period last year. Consolidated segment profit was $152.7 million, compared to $47.6 million last year. Net income was $61.5 million ($1.43 per share diluted), compared to a loss of $37.2 million last year (loss of $0.87 per share). Television revenue was $270.8 million, up 7% over last year. Specialty advertising revenue growth was 14%. Television segment profit for the first nine months of the year was $110.0 million, up 14% from $96.3 million. Radio year-to-date revenue was $187.4 million, compared to $169.6 million last year, an 11% increase. Segment profit was $53.2 million, compared to $43.8 million, an increase of 21% from last year. Content revenue was $54.4 million, compared to $84.9 million last year. The year-to-date decline in revenue is attributable to a planned reduction in the number of episodes produced and lower merchandise sales of Beyblade. Segment profit year-to-date was $1.8 million, compared to a loss last year of $83.8 million. Last year’s results included an $85.0 million write-down in the film library.
“We are very pleased with our radio results in particular. Our strong competitive position and a continued improvement in our financial performance has been very satisfying,” added Heather Shaw, Executive Chair of Corus Entertainment Inc. “Additionally, our recent announcement of the launch of our non-linear channel Vortex On Demand with Comcast for the U.S. market clearly marks a new era for delivery of our content as well as recognition of the appeal of Nelvana’s programming library.”
Senior Subordinated Debt
Corus Entertainment Inc. also announced today that it will seek an amendment to the Restricted Payments Covenant clause from the holders of the senior subordinated notes to increase its restricted payments capacity by U.S.$65.0 million. The amendment will permit the Company to increase its dividend or repurchase its shares or make investments, in each case if deemed appropriate by its Board of Directors. 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 Entertainment Inc. reports in Canadian dollars.
For further information, please contact: John Cassaday President and Chief Executive Officer Corus Entertainment Inc. (416) 642-3770 Tom Peddie Senior Vice President & Chief Financial Officer Corus Entertainment Inc. (416) 642-3780 Tracy Ewing Vice President, Communications Corus Entertainment Inc. (416) 642-3792 Full financial details are available on this website under Investor Information.