TORONTO – While Corus Entertainment credited its television division for its solid fourth quarter and 2011 year end results released Wednesday, its specialty ad sales department took its lumps this summer.
The media and entertainment company reported net income for the year ended August 31 of $146.3 million, up from $126.7 million last year. Consolidated revenues were $825.2 million, an 8% increase from $767.5 million in 2010, while consolidated segment profit jumped 12% to $285.4 million over $256.0 million last year.
Corus said its television segment profit increased 14% for the year to $258.5 million. Specialty advertising revenues were up 11%, and subscriber revenues increased by 6%. Movie Central finished 2011 with 984,000 subscribers, up 2% from the prior year.
The company’s radio division increased its segment profit by 3% for the fiscal year to $59.1 million, and achieved its segment profit margin target of 30%.
However, the company also recorded a 6% drop in ad revenues in the fourth quarter of the year, ended August 31 as ad sales at its bigger brands, such as W, YTV and CMT, took a hit, executives told analysts during its quarterly conference call.
"Corus had an excellent year highlighted by double digit segment profit growth and a 45% dividend increase," said president and CEO John Cassaday, in a statement. "Corus achieved its segment profit guidance and exceeded free cash flow guidance as a result of tight cost controls in Radio coupled with exceptional revenue and segment profit growth in Television. Our annual segment profit guidance included the Quebec Radio business for a full year, so if not for the divestiture of Quebec, we would have been at the high end of our guidance range or exceeded it."
