Corus TV revenues up, radio down

Corus Entertainment Inc. this morning reported television revenue either in line or slightly higher than analyst estimates, while “offset by lower than expected” radio revenues, according to RBC analyst Drew McReynolds. Television revenues went up marginally from $426.2 million in the three months that ended on Nov. 30 in 2018 to $429.9 million for the same period in 2019, Corus reported in its first quarter earnings. The slight uptick in television revenue came alongside a similarly-sized downtick in radio revenues, which dipped from $41.3 million in the first quarter of 2018 to $37.9 million in the same quarter this year. These changes represented minor dips in profit margins, from $184.5 million to $178.6 million in the television division, and from $13 million to $12 million on the radio side from the equivalent period last year. Overall revenue was up from $467.4 million to $467.9 million over the same quarter last year, while the net income was up from $66.8 million to $84.4 million in the same period. Corus president and CEO Doug Murphy pointed to the company's increased investment in its own programming offerings in the Friday morning earnings call. “I’m encouraged that so many of our series are going into 2nd and 3rd seasons, which is fundamental to brand building, and increases the potential to create franchise worldwide,” Murphy said. According to Corus chief financial officer John Gossling, the discontinuation of two specialty channels in September, IFC and Cosmo, resulted in losses of $4.7 and $2.5 million respectively, which he said was “more than offset” by the $2.5 million in from a large TV service provider agreement renewal and $8.5 million from new advertising revenue streams and other revenue streams. Growth in digital advertising also contributed to television revenue, according to Gossling. The results in radio, Gossling said on the call, were “impacted by softness in the entertainment and retail advertising environment as well as continued economic and ratings challenges in Alberta.” The radio profit margin of 32 per cent was consistent with the previous year, he said. During the fall, Corus had asked the CRTC to grant it additional flexibility with its CanCon spending. In contributing to the financial difficulties it has faced in recent years, Corus cited the rise of new direct-to-consumer, Internet-based platforms; rising programming costs; debt obligations; and a Competition Bureau ruling that prevented the company from selling two French-language channels that Corus says would have netted it $200 million. In trying to offload the channels, Corus also let $2.3 million in Canadian Media Fund money go unspent, cash which reverted back to the CMF. Murphy said the company is also keeping its eyes on the upcoming release of the Broadcast and Telecommunications Review panel’s recommendations, expected at the end of the month.

Corus TV revenues up, radio down

Brief | January 10, 2020

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Corus TV revenues up, radio down

Brief | January 10, 2020

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