TORONTO – "We have delivered revenue and segment profit growth for the second consecutive quarter, driven by the launch of new specialty television services and digital distribution revenues," said Doug Murphy, president and CEO of Corus Entertainment today in the company’s second quarter financial release.
“With the completion of our transformational acquisition of Shaw Media on April 1st, we are fully focused on quickly integrating our operations, capturing significant synergies and unlocking the future growth potential of these powerful media assets."
Consolidated revenues for the three months ended February 29, 2016 were $197.7 million, up 3% from last year. Consolidated segment profit was $79.6 million, up 33% from $59.7 million last year, however, that excludes amortization of disposed Pay TV program and film rights of $14.2 million (Corus agreed to shutter its western pay TV service Movie Central in a deal with Bell Media). Adjusting for this, segment profit would be $65.4 million, up 10% from last year, says the company’s press release.
Net income attributable to shareholders for the quarter was $102.2 million, as compared to a net loss of $86.8 million in the same quarter last year. Net income attributable to shareholders for the second quarter of fiscal 2016 includes business acquisition, integration and restructuring costs of $6 million, a gain on the disposal of the pay television disposal group of $86.2 million, and excludes amortization of pay television program and film rights of $14.2 million. Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $20.9 million in the quarter.
Net loss attributable to shareholders for the prior year quarter includes radio broadcast license and goodwill impairment charges of $130 million, business acquisition, integration and restructuring costs of $8 million, offset by a gain on disposition of investment of $17 million. Removing the impact of these items results in an adjusted net income attributable to shareholders of $28.5 million in the prior year quarter.
Some results for the quarter, taken directly from the press release
- Specialty television advertising revenues decreased 8% in Q2 2016 and 7% for the year-to-date
- Subscriber revenues increased 5% in Q2 2016, and increased 3% for the year-to-date (which saw the launch of Disney Channel and Disney Jr.)
- Merchandising, distribution and other revenues increased 40% in Q2 2016 and 37% for the year-to-date
- Radio segment revenues decreased 6% in Q2 2016 and 4% for the year-to-date
- Radio profit decreased 17% in Q2 2016 and 6% for the year-to-date and profit margin dipped 15% in Q2 2016 and 23% for the year-to-date
