TORONTO – Fourth quarter profits tumbled at Corus Entertainment as the company continued to absorb its acquisition of Shaw Media.
The company said Wednesday that net income attributable to shareholders for the quarter ended August 31, 2016 was $25,000, well below the $17.8 million posted in the same period last year, which includes business acquisition, integration and restructuring costs of $19.6 million. Adjusting for the impact of these items resulted in an adjusted net income attributable to shareholders of $14.5 million.
Consolidated revenues for the quarter of $384.5 million increased 99% from $193.6 million year-over-year, reflecting the acquisition, while consolidated segment profit of $105.4 million improved 90% from $55.5 million in Q4 2015.
For fiscal 2016, consolidated revenues rose 44% to $1.17 billion and consolidated segment profit was up 48% to $411.0 million, however, that excludes the amortization of disposed Pay TV program and film rights of $15.6 million. Adjusting for this, segment profit would be $395.4 million, up 43% from last year. Net income attributable to shareholders for the year ended August 31, 2016 was $125.9 million compared to a net loss of $25.2 million last year.
"This has been a transformational year for Corus as we build a leading integrated media and content company with competitive scale to drive growth over the long term," said president and CEO Doug Murphy, in the news release. "Our talented team is focused on advancing our strategic priorities while securing our cost synergies and executing our integration plan to position Corus well for 2017 and beyond."
Corus’ television segment revenues for the quarter were $347.3 million, more than double $154.3 million in the same period last year, while radio revenues fell to $37.2 million from $39.3 million. Television segment profit jumped to $106.8 million from $52.6 million year-over-year, while radio segment profit was flat at $8.5 million.
Other highlights from Corus’ financial results include:
Television
– Advertising revenues increased 324% in Q4 2016 and 116% for the year;
– Subscriber revenues increased 50% in Q4 2016 and 19% for the year;
– Merchandising, distribution and other revenues increased 17% in Q4 2016 and 26% for the year;
– Segment profit increased 103% in Q4 2016 and 55% for the year;
– Adjusted segment profit margin was 31% in Q4 2016 and 38% for the year.
Radio
– Segment revenues decreased 5% in Q4 2016 and 4% for the year;
– Segment profit was comparable in Q4 2016 and decreased 2% for the year;
– Segment profit margin of 23%, both in Q4 2016 and for the year.
