TORONTO – Having cut substantial costs, overhauled formats, replaced management and now in the midst of several frequency flips, Corus Entertainment expects its Quebec radio division to lead the growth parade, soon.
Margins languish in the 5% range among the company’s stations in the province, company executives said Tuesday in a conference call with financial analysts upon the release of its second quarter results. In the rest of the country, average margins are in the 33% range and the company, with changes in store, wants to see Quebec radio’s margins approach that figure.
"In Quebec we have considerable opportunity for growth and are quite excited about that prospect," said company CEO John Cassaday. (Margin improvement will be helped by the fact the company will not replace former Quebec radio chief Pierre Arcand, who resigned earlier this year to enter politics and is now the Liberal MLA for Mont Royal.
So far in Quebec, the division has consolidated its six Montreal stations under one roof and has permission from the CRTC to switch its AM stations in Gatineau, Saguenay, Sherbrooke and Trois Rivieres to FM. The stations will become part of the company’s new regional news network in the province.
"We’re creating a news talk hub out of Montreal into Quebec City Gatineau, Sherbrooke, Trois Rivieres and Saguenay," said Corus Radio president John Hayes.
"It’s a work in progress and we’re pleased with the progress we’re making," he added. The frequency flips are scheduled to be complete by June with a large marketing and promotional push to come in the fall, or during Q1 2008.
"We’re quite confident Quebec will be the most significant contributor to our growth going forward," added Cassaday.
