- Consolidated segment profit increases 20% in the third quarter
- Consolidated revenues increase 12% in the third quarter, with Television specialty ad growth of 14% and Radio revenue growth of 9%
- Basic earnings per share of $0.39 for the quarter compared to a loss of $1.81 last year
(July 14, 2010 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced its third quarter financial results today.
“This was an exceptional quarter for Corus, with advertising sales strong for both Television and Radio. We also benefited from our cost control initiatives,” said John Cassaday, President and CEO of Corus Entertainment. “Ad sales continue to pace well ahead in our fourth quarter as the overall economy continues to recover. We are confident in our ability to achieve our earnings guidance for the full fiscal year.”
|Three months ended||Nine months ended|
(unaudited in thousands of Canadian dollars except per share amounts)
|May 31,||May 31,|
|Net income (loss)||31,411||(145,030)||119,922||(75,368)|
|Earnings (loss) per share|
|Basic||$ 0.39||$ (1.81)||$ 1.49||$ (0.94)|
|Diluted||$ 0.39||$ (1.81)||$ 1.48||$ (0.94)|
Consolidated revenues for the three months ended May 31, 2010 were $218.4 million, up 12% from $195.4 million last year. Consolidated segment profit was $73.8 million, up 20% from $61.4 million last year. Net income for the quarter was $31.4 million ($0.39 basic and diluted), compared to a net loss of $145.0 million (loss of $1.81 basic and diluted) last year. Net income for the prior year includes a $172.5 million after-tax broadcast license and goodwill impairment charge. Removing the impact of this item results in adjusted third quarter basic earnings per share of $0.34 in the prior year.
Consolidated revenues for the nine months ended May 31, 2010 were $633.4 million, up 7% from $593.5 million last year. Consolidated segment profit was $212.5 million, up 10% from $193.8 million last year. Net income for the nine-month period was $119.9 million ($1.49 basic and $1.48 diluted), compared to a net loss of $75.4 million (loss of $0.94 basic and diluted) last year. Net income for the nine-month period includes a $16.2 million reversal of a disputed regulatory fee accrual, a $14.2 million recovery due to income tax rate changes and a debt refinancing loss of $14.3 million.
- Revenues increased by 9% in the third quarter and were flat for the year-to-date.
- Segment profit increased by 36% in the third quarter and 16% for the year-to-date.
- Revenues for the quarter increased 19% in Ontario, increased 10% in Quebec and other, and returned to growth in the West.
- Revenues increased by 13% in the third quarter and 10% for the year-to-date.
- Segment profit increased by 17% in the third quarter and 11% for the year-to-date.
- Advertising revenues increased by 11% in the third quarter and increased by 4% year-to-date.
- Specialty advertising revenues increased by 14% in the third quarter and 5% for the year-to-date.
- Subscriber revenues increased by 13% in the third quarter and 11% for the year-to-date.
- Movie Central finished the quarter with 970,000 subscribers, up 2% from last year.
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, CosmoTV, VIVA, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press and radio stations including CKNW, CFOX, CKOI, 98.5 FM, 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 (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 three and nine months ended May 31, 2010 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 July 14, 2010 at 2 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 1.800.926.6309 and for local/international callers it is 416.981.9035. PowerPoint slides for the call will be posted at 1:45 p.m. ET on July 14, 2010 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, program, 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, program, 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 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 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.