Shaw Media carries Corus to 99% revenue increase in Q4

Corus Entertainment Inc. reported Wednesday a 99 per cent increase in revenues for the fourth quarter, despite a decline in radio revenues. The three-month period, which ended August 31, saw Corus close with total revenues for both television and radio of $384.4 million, compared to $193.5 million in the same period last year, before it bought Shaw Communications Inc.’s media division. Profit was up 90 per cent to $105.3 million for both segments, from $55.4 million compared to last year. Television revenues carried the heavy lifting there, increasing 125 per cent to $347.2 million from $154.3 million, primarily attributable to the $220.4-million contribution in the quarter from Shaw Media, which was acquired in April for $2.65 billion. Profit for television was up to $106.8 million for the quarter compared to $52.5 million last year. This was offset by the sale of assets including HBO rights and sagging radio revenues, which fell five per cent to $37.1 million this quarter compared to $39.2 million in the same quarter last year. Profit for radio was flat at $8.51 million for the quarter compared to $8.5 million last year. On a conference call Wednesday, Corus chief financial officer John Gossling attributed the radio decline to “softness in our western markets and, in particular, the challenging economic conditions in Alberta.” Ontario provided strength in that segment, with particular credit given to Ottawa. Despite the comparative boost in revenues from the same quarter last year, legacy Shaw Media revenues were down five per cent, offset partly by a 10 per cent increase in subscriber revenues, driven by the launch of the Walt Disney Co. channels. Meanwhile, legacy Corus television revenues were up 3.4 per cent for the quarter. Gossling said on the call that comparative year-over-year factors that influenced revenue declines included last year’s federal election advertising, a stronger summer schedule and more ad support for blockbuster releases. In addition, the impact of sporting events, including the Rio Olympics and the Euro Cup, also factored in the quarter, which moved audiences away. As for the Blue Jays’ run this year, president and CEO Doug Murphy said on the call “when the Jays are playing, all non-Jays broadcasters have some audience getting kind of hoovered away, so we will continue to experience that.” However, Gossling said that the Blue Jays’ similar run last year was also factored in that quarter.

Shaw Media carries Corus to 99% revenue increase in Q4

Brief | October 19, 2016

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Shaw Media carries Corus to 99% revenue increase in Q4

Brief | October 19, 2016

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