TORONTO – 2005 “is developing into CHUM’s best year ever,” company CEO Jay Switzer said this afternoon in presenting the third quarter financial results.
Overall, revenue was up 18% to $175.5 million in the quarter ended May 31st, as compared to last year’s Q3. Earnings before interest, taxes, depreciation and amortization shot up by 52.4% to $47.8 million. Radio’s EBITDA increased 39.5% to $14.5 million, and television by 46.4% to $37.2 million. Cash flow from operations increased by 44.8% to $27.9 million.
CHUM owns and operates 33 radio stations as well as a number of conventional TV stations such as Citytv, and a passel of specialty services like MuchMusic, Bravo!, Space and CourtTV.
CHUM’s radio segment (which includes the two Victoria B.C. stations bought last year from Seacoast – CFAX and CHBE – and new station 91.7 The Bounce in Edmonton, which it owns with Milestone Broadcasting)recorded strong revenue and income gains. The growth rate was higher than in the first two quarters of this year owing to a stronger ratings position for the company’s radio stations in fall 2004 compared with fall 2003, says the company.
As for its Toronto flagship, CHUM-FM, which saw a precipitous drop in the last ratings book of about 20%, Switzer called those results an “anomaly” and that the management team expects “a return to normal audience levels” in the next ratings book, due out next month. “We have a multi-year history of dominance in this market,” with CHUM FM, Switzer added.
The television segment comprises the company’s conventional television stations located in Ontario, British Columbia, Alberta and Manitoba, together with its national and regional specialty television channels. The company has cut costs of late and will spend some marketing dollars soon in re-branding its existing “Newnets” in Ontario and Victoria to A-Channels. It will also turn the existing western Canadian A Channels it acquired from Craig Media last year into Citytv’s.
Switzer said the company has a lot of top line issues to take care of with the former Craig channels out west, whose revenue performance was “in a much worse place than we would have liked,” he said.
He also pointed to revenue performance problems at CFPL London, CHRO Ottawa and Toronto cable news channel CP24.
However, “the integration of CMI’s conventional television stations in Calgary, Edmonton, Brandon and Winnipeg into the company’s existing conventional television operations has: significantly increased the reach of the company’s conventional television stations, which should result in increased advertising revenue on national programming costs; resulted in savings in operating expenses in the areas of sales and general and administration; and provided the Company with greater flexibility in its programming and promotional strategy for its Citytv station group and its NewNet station group (to be re-branded A-Channel in August, 2005), and should lead to improved profitability for all of its conventional television stations,” said the company.
