TORONTO – A drop in television ad revenues pulled down third quarter revenues at Corus Entertainment, despite an increase in profits.
Consolidated revenues for the three months ended May 31 were $204.1 million, down 4% from $211.8 million last year. Consolidated segment profit fell 4% to $75.7 million from $78.8 million last year, while net income attributable to shareholders for the quarter was $43.2 million up 7% compared to $40.4 million last year.
Corus said Thursday that its television segment profit fell 5% to $66.7 million due in part to an 11% drop in specialty advertising revenues which were impacted by soft demand in its Kids segment. Subscriber revenues dipped 2%, merchandise, distribution and other revenue was up by 8%, and Movie Central finished the quarter with 975,000 paid subscribers.
The company’s radio division saw its segment profit grow by 1% for the quarter to $16.2 million after revenues fell 3%.
"Despite tough year-over-year comparables, we delivered a solid performance in the quarter, growing net income and earnings per share, maintaining our exceptional margins through rigorous cost controls and continuing to generate impressive free cash flow," said president and CEO John Cassaday, in a statement. “Looking ahead, our exceptional brands, superior programming and disciplined cost controls position us well for a recovery in the advertising market."