TORONTO – With its revenues down 5%, Corus Entertainment saw its second quarter losses top $8 million.
For the period ended May 31, 2015, the net loss attributable to shareholders was $8.1 million, up from a $30.3 million loss last year, which includes intangible non-cash impairment charges of $51.8 million and business acquisition, integration and restructuring costs of $2.7 million. Removing the impact of these items results in an adjusted net income attributable to shareholders of $31.6 million in the quarter.
Consolidated revenues for the quarter were $203.1 million, down from $214.0 million last year, while consolidated segment profit was fell 14% to $68.7 million from $79.7 million year-over-year.
Corus’ television segment revenues for the quarter were $162.8 million, down almost 5% from $170.6 million last year, while radio revenues fell 7% to $40.4 million from $43.5 million. Television segment profit dropped 15% to $64.1 million from $75.7 million year-over-year, while radio segment profit plunged 19% to $9.5 million from $11.7 million last year.
Free cash flow increased to $63.4 million from $59.4 million in the same period of fiscal 2014.
Other highlights from Corus’ financial results include:
Television
– Specialty advertising revenues decreased 11%;
– Subscriber revenues decreased 3%;
– Merchandising, distribution and other revenues increased 15%;
– Segment profit margin of 39%.
Radio
– Segment profit margin of 23%;
– Non-cash broadcast license and goodwill impairment charges of $130.0 million for the 2015 year-to-date.
"While our third quarter operating results were disappointing, we were pleased to deliver solid year-to-date free cash flow of $156 million," said president and CEO Doug Murphy, in a statement. "Over the next 18 months, our focus will be to fortify our brands and competitive position by leveraging our strategic investments in premium content across platforms and delivery systems. We have already made significant progress, inking ground-breaking content and rights deals with Nickelodeon and Disney, and expanding our digital presence in Radio and Television, most recently with the launch of the first in our suite of innovative kids TV Everywhere apps, TreehouseGO. We are confident that we are on the right track to deepen our engagement with audiences and evolve the company for future growth in a dynamic, consumer-centric marketplace."
