TORONTO – “Corus had an exceptional year in fiscal 2007,” said John Cassaday, president and CEO of the company in its press release announcing its Q4 and fiscal 2007 year-end results.
“Our share price increased by 26%, we increased our dividend by 16% and we bought back approximately 2% of our shares. These positive outcomes for our shareholders were due to the strength of our core businesses in radio and television. As a result of our year end financial results and our outlook for next year, we are increasing our segment profit guidance range to $255 – $265 million for fiscal 2008”.
Consolidated revenues for the fourth quarter ended August 31, 2007 were $187.2 million, up 1% from $185 million last year, says the company’s release. Consolidated segment profit was $50.2 million, up 13% from last year. The fourth quarter of fiscal 2007 benefited from the reversal of an accrual of $4.9 million related to certain regulatory fees. Net income for the quarter was $21.2 million, compared to net income of $46.6 million in Q4 last year. Net income for the fourth quarter last year was positively impacted by approximately $37 million in income tax rate changes and other income tax items.
Corus Television contributed quarterly revenues of $104.2 million, up 8% from $96.9 million last year, led by continued specialty advertising growth of 8% and subscriber revenue growth of 5%. Quarterly segment profit increased to $35.5 million, up 3% from $34.5 million last year.
Corus Radio revenues were $66.5 million, up marginally from $66.3 million last year. Segment profit was $19.7 million, up 24% from $15.8 million last year.
Corus Content revenues, however, were $17.7 million, down 28% from $24.5 million last year. Segment profit was $2.3 million, compared to $2.2 million last year.
For the full year, ended August 31, 2007, consolidated Corus revenues were $768.7 million, up 6% from $726.3 million last year. Consolidated segment profit was $240.9 million, up 13% from $214.1 million last year. Net income for the year was $107.0 million, compared to $35.5 million last year. The prior year included a pre-tax debt refinancing loss of $132 million.
Corus Television, led by specialty advertising growth of 12% and subscriber growth of 8%, contributed full year revenues of $436.3 million, up 9% from $401.9 million last year. Movie Central finished the year with 883,000 subscribers, an increase of 7% from the end of last year. Segment profit for the year increased to $182.4 million, up 10% from $165.3 million last year.
Corus Radio revenues were $275.7 million for the year, up 3% from $268.4 million last year. Segment profit was $77.5 million, up 13% from $68.4 million last year.
Corus Content revenues were $61.3 million, down 4% from $63.6 million last year. Segment profit for the year was $5.4 million, up from $4.5 million last year.
“Corus had another excellent year” added Heather Shaw, executive chair. “We accomplished several important initiatives that position us well for the future such as securing the Cosmopolitan Television license. In addition, we gained new FM radio stations in Kitchener, Winnipeg and several cities throughout the province of Quebec. We are also excited by our new international ventures with Kidsco and qubo.”
