TORONTO – Corus says “prudent cost control” helped to lift fourth quarter profits and mitigate a dip in revenues.
Net income attributable to shareholders for the quarter ended August 31 was $33.7 million, up almost $5 million from $28.9 million posted in the same period last year, the company said Friday. Net income attributable to shareholders for the fourth quarter of fiscal 2018 includes business acquisition, integration and restructuring costs of $7.7 million. Adjusting for the impact of this item resulted in an adjusted net income attributable to shareholders of $39.5 million in the quarter.
Consolidated revenues for the quarter were $379.1 million, down less than 1% from $381.2 million last year, while consolidated segment profit of $114.6 million increased 6% from $107.6 million year-over-year.
For fiscal 2018, consolidated revenues dipped 2% to $1.65 billion and consolidated segment profit was $575.6 million, relatively consistent with $578.1 million last year. Net loss attributable to shareholders for the year ended August 31, 2018 was $784.5 million, compared to net income attributable to shareholders of $191.7 million last year, which includes broadcast license and goodwill impairment charges of $1.01 billion, and business acquisition, integration and restructuring costs of $17.1 million. Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $238.4 million for the current fiscal year.
Free cash flow of $96.0 million in Q4 2018 and $349.0 million for the year increased from $80.2 million and $292.7 million, respectively, in the prior year.
Corus’ television segment revenues for the quarter were flat at $344.6 million, while radio revenues fell 2% to $34.4 million. Television segment profit grew 1% to $108.7 million, while radio segment profit was up 2% to $8.5 million.
Other highlights from Corus’ financial results include:
Television
– Advertising revenues decreased 4% in Q4 2018 and for the year
– Subscriber revenues increased 1% in Q4 2018 and were flat for the year
– Merchandising, distribution and other revenues increased 19% in Q4 2018 and 6% for the year
– Segment profit increased 1% in Q4 2018 and decreased 4% for the year
– Segment profit margin of 32% in Q4 2018 and 36% for the year, compared to 31% and 37%, respectively, in the prior year comparable periods
Radio
– Segment revenues decreased 2% in Q4 2018 and 1% for the year
– Segment profit increased 2% in Q4 2018 and for the year
– Segment profit margin of 25% in Q4 2018 and 27% for the year, compared to 24% and 26%, respectively, in the prior year comparable periods
"In fiscal 2018, we delivered record free cash flow and strong consolidated margins, demonstrating our ability to partially offset television market headwinds through prudent cost control and solid execution of our revenue diversification strategies," said president and CEO Doug Murphy, in the news release. "We are encouraged by our great fall programming line-up and the progress we are seeing throughout the business, as we gain momentum with our advanced advertising and data initiatives and invest in our owned content and other growth areas. With our revised fiscal 2019 Capital Allocation Policy and commitment to continuous cost improvements serving as a strong foundation, our talented team continues to diligently optimize our core asset base while making strategic investments in our future as we build long-term resilience and stability."
