TORONTO – Corus Entertainment announced today it suffered losses in revenue and profit for its fiscal first quarter due in part to advertisers shying away as a result of the pandemic and supply chain issues.
But despite the concern, executives at the pure-play media company said on a conference call this morning they are optimistic about a future of stabilized advertising revenue as more of that supply moves from social media to trusted linear television products. They also expressed optimism about “regulatory change…on the horizon” as a new-look CRTC with new responsibilities means bringing wealthy competitive foreign streamers more under the regulatory ambit of the commission.
For the three months ending November 30, the media and broadcasting company saw a 7% decline in revenues for the quarter and segment profit declines of 26% compared to the same period the year prior. Revenues in television fell 8% to $401 million, but was picked up slightly by the radio segment that saw a 2% uptick to $29.6 million. Total revenues for the quarter were $431.2 million.
Profit for television was down 26% to $131.7 million for the quarter, but that was similarly picked up by a 5% increase in radio profits to $6 million. Corporate losses were lower by 18%, losing just $6 million compared to the $7.5 million the company lost year-over-year. Total profit was compared to the equivalent period was down to $131.7 million.
Versus the comparable period, advertising revenues were down 11% to $252.5 million and subscriber revenues were flat at $127.5 million. Murphy noted that the company expects a “sequential improvement” in the rate of advertising revenue declines.
The company, however, did experience a 13% bump in new platform revenue. That new platform includes the launch of free ad-supported streaming service Pluto TV on December 1, which Corus said allows it to provide a different and diverse space for advertisers.
In the middle of last month, the company also added Disney channels to its StackTV product.
“We have bolstered the value proposition of STACKTV with the addition of our suite of Disney channels,” said Corus president and CEO Doug Murphy in a press release. “Our owned content business is gearing up for a significant increase in episodic deliveries in the year ahead. Importantly, we have implemented a rigorous cost review to address recent revenue weakness while remaining focused on advancing our strategic plan and priorities.”
The new year could bring about changes that could benefit the company, executives said on the call today, including modern broadcasting legislation that Corus has been lobbying for a long time to bring a level playing field for Canadian broadcasters and foreign streamers.
That legislation includes Bill C-11, the Online Streaming Act that is still making its way through Parliament, that would amend the Broadcasting Act to give the CRTC more authority to get digital streaming platforms to contribute to Canadian content.
Murphy said on the call the CRTC must “move with purpose.”
He would be speaking to a relatively new-look commission that includes a new head in Vicky Eatrides, who started earlier this month, and a now-full-time vice chair of broadcasting Alicia Barin.
Screenshot of Corus CEO Doug Murphy
