TORONTO – With double digit losses in both revenue and profits for its second quarter of 2013, Corus Entertainment described its financial results for this period as “soft.”
The company reported a 10.7% decrease in total revenue for the quarter ended Feb. 28 of $183.7 million, down $205.7 million for the same period a year earlier. Revenue dropped in both radio and TV segments, with Corus executives attributing part of the 12% decrease in TV revenue in Q2 FY 2013 to decreased advertising from its childrens programming.
“Virtually all of that was related to the entertainment space which just was a real disappointment to us in the quarter,” Corus president and CEO John Cassaday told analysts on a conference call, according to the Winnipeg Free Press. “A problem well-defined is a problem half-solved and to define the specific problem, it was kids and then more specifically, the entertainment sector.”
Net income attributable to shareholders fell to $5.9 million in Q2 FY 2013 from $31.6 million for the same period in 2012. The company said a pre?tax charge for debt refinancing of $25.0 million accounted for the sharp decrease. Removing the impact of this item results in adjusted net income attributable to shareholders of $24.4 million for the second quarter, representing a 22% year-over-year decrease from the same period in 2012.
Cassaday said a “highlight” of the quarter was the successful refinancing of the company’s senior unsecured guaranteed notes, which resulted in a 300 basis point reduction in our financing costs. The company is also looking for better returns from its plans (still subject to CRTC approval) to purchase a 50% stake in Teletoon/Télétoon, English-language Teletoon Retro and Cartoon Network (Canada), and French-language Télétoon Rétro, Historia and Séries+ from Bell, and two acquire two Astral-owned radio stations in Ottawa (CKQB-FM and CJOT-FM) as part of Bell’s radio divestitures required under the CRTC’s radio ownership.
