Corus revenue, profit decrease for Q4 and fiscal 2024

Corus Entertainment Inc. released its fourth quarter and end-of-year statements on Friday Oct. 25. Both revenues and profits declined in each period. Yearly revenues were $1.27 billion, a fall of 16 per cent from $1.51 billion the previous fiscal year. Quarterly revenues were pegged at $269 million, a decrease of 21 per cent from nearly $339 million in Q4 2023. Net loss attributable to shareholders for the year was $772 million, ballooning 80 per cent from 2023’s $428 million. For the quarter, losses were at $25.6 million versus a profit of $50.4 million in Q4 2023, a decline of 151 per cent. On a banking analysts conference call, chief financial officer and co-CEO John Gossling announced that the embattled company has been granted an amended bank credit facility which will help it maintain operations. He and co-CEO Troy Reeb concentrated mostly on television assets, giving only passing references to radio operations. Gossling said the TV outlook was brighter now that an actors and writers strike in the United States was settled. Scripted programming is now back in the pipeline and available on Global TV and affiliated specialty networks. The company was able to contain costs by shutting down specialty networks, discontinuing long-standing programs and shuttering three radio stations. The firm has been hit hard by some of its programming being snapped up by Rogers Communications Inc. In response to losing the Canadian rights to the HGTV Channel and the Food Network, Corus is launching two new specialty channels – Flavour TV and the Home Network – at the end of December, Reeb stated. Its Slice channel is being rejigged to feature more reality programming, he noted. Many of Corus’ shows are also streamed on its StackTV service. Reeb is also hopeful that the CRTC will grant Global News access to the Independent Local News Fund. A proceeding on the matter is currently underway. The co-CEO had praise for another initiative from the commission. “We are also encouraged to have heard the chair of the CRTC confirm this week plans to move forward with an important review of the structural relationships between broadcasters, distributors, and streamers,” he told the analysts. “This is long overdue.” Asked about cost-cutting measures, Gossling said that Corus will emerge as a “smaller but more profitable business.” He did not rule out selling or closing existing specialty channels.The company is on track to reduce headcount by 800 positions. The CFO would not comment on news reports that larger firms are on the hunt to acquire Corus. The Globe and Mail reported that Quebecor Inc. is eyeing the broadcaster. In a note, analyst Adam Shine of National Bank of Canada wrote that the outlook for advertising sales in Q1 2025 is worse than predicted. The firm’s net asset value (NAV) is concerning to the analyst. “Our target reflects a notional value of $0.01/share, as forecasted NAV values have turned negative,” he stated. Also pessimistic was Aravinda Galappatthige of Canaccord Genuity. “In light of the balance sheet position, we have lowered our price target to C$0.00 from C$0.10, and are maintaining our SELL rating,” he wrote. ppark@thewirereport.ca

Corus revenue, profit decrease for Q4 and fiscal 2024

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By Paul Park
| October 25, 2024

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Corus revenue, profit decrease for Q4 and fiscal 2024

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By Paul Park
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