TORONTO – Pure play media company Corus Entertainment announced Thursday dips in revenue and profit in its second quarter financial report, citing the difficult advertising space and a chunk of change it owes to meet its regulatory obligations.
For the three months that ended February 28, the company’s revenues and profit decreased 5 per cent to $343.9 million and 32 per cent to $59.1 million, respectively, compared to the same quarter the year prior. The company blamed a rough advertising market – revenue in that segment was down 7 per cent – due to supply chain disruptions, budget constraints and changing consumer habits.
“The decrease in advertising revenue was attributable to declines in health & beauty, retail, financial services, government, toys, communications, direct-to-home, and services categories, partially offset by growth in igaming and travel categories,” the company noted in the report.
Subscriber revenue was also down 7 per cent. Meanwhile, revenue decreased in television by 5 per cent and radio by 1 per cent – to $321.5 million and $22.3, respectively. Profit in TV was down to $63 million from $92.7 million in the equivalent period; in radio, it was up to $350 million from $125 million. The latter’s strength was drawn from stronger podcasting advertising and growth in the travel and entertainment categories.
Distribution, production and other revenue was also up 27 per cent compared to the equivalent period.
The company also complained of a $50 million charge it must pay to the CRTC for Canadian programming expenditures as part of its regulatory obligations. Those payments were initially suspended for companies to deal with the pandemic, but the regulator has said that must now be paid.
“This unfortunate decision by our regulator is having a significant impact on our financial performance this year and last,” said Corus CEO Doug Murphy on the company’s conference call Thursday morning.
“As we turn the quarter on fiscal ‘23 this summer and enter into fiscal ’24, we will begin to put this additional annual $20-million expense behind us,” Murphy added, suggesting the company is overall optimistic it can wade through the revenue dry spells.
