TORONTO – Newly acquired television services Historia, Séries+ and Teletoon are already beginning to pay off for Corus Entertainment, the company said Thursday while reporting its second quarter results.
Consolidated revenues for the three months ended February 28, 2014 were $191.4 million, up 11% from $172.6 million last year, while consolidated segment profit increased 16% from $50.9 million to $59.3 year-over-year.
Net income attributable to shareholders was $6.1 million, compared to $5.9 million, which includes a radio broadcast license impairment charges of $8.0 million, business acquisition, integration and restructuring costs of $18.7 million, and a decrease in the purchase price obligation of $2.1 million related to the acquisition of control of Teletoon. On an adjusted basis, net income was $26.8 million, up 10% from $24.4 million in the prior year quarter.
Corus’ television segment revenues for the quarter were $152.1 million, up 15% from $132.3 million last year, while radio revenue dipped 2% to $39.3 million from $40.2 million. Television segment profit increased 21% to $58 million from $48.1 million year-over-year, and radio segment profit dropped 12% to $8.5 million from $9.6 million.
Free cash flow increased to $73.4 million from $39.8 million in the second quarter of fiscal 2013.
Other highlights from Corus’ financial results include:
Television
– Specialty advertising revenues increased 38%;
– Subscriber revenues increased 23%;
– Merchandising, distribution and other revenues dropped 38%;
– Segment profit margin of 38%.
Radio
– Segment profit margin of 22%.
"In the second quarter, our acquisitions drove significant segment profit and margin growth in our Television business, delivering immediately accretive earnings per share and free cash flow," said said president and CEO John Cassaday, in a statement. "While our merchandising business faced tough year-over-year comparables in the quarter and Radio continues to be challenged, we are excited about the opportunities that our newly acquired assets, combined with the continued strength of our core brands, bring to the business."
