TORONTO – Corus Entertainment CEO Doug Murphy says the company is making progress on its goal of “returning to growth” after posting double-digit gains in third quarter revenues and profits.
Corus said Tuesday that net income attributable to shareholders for the quarter ended May 31, 2017 was $66.7 million, versus a $15.8 million net loss in the same period last year, which includes business acquisition, integration and restructuring costs of $4.6 million. Adjusting for the impact of this item resulted in an adjusted net income attributable to shareholders of $70.1 million in the quarter.
Consolidated revenues for the quarter of $461.6 million grew 28% from $360.8 million year-over-year, while consolidated segment profit of $175.8 million was up 35% from $130.2 million last year.
"We were pleased to deliver solid revenue gains, double-digit segment profit growth and impressive margin expansion in the quarter”, Murphy said in a statement. “In addition, we reached a key leverage ratio milestone earlier than anticipated. As we head into a new broadcast year, we expect our powerful brands and content will position us for continued audience share gains, supported by our exciting fall schedule. This coupled with our improved cost structure and the unwavering commitment of our talented team gives us confidence that we remain on the right track to achieving our long-term goals".
Corus’ television segment revenues for the quarter were $422.3 million, up 31% from $321.2 million in the same period last year, and up 3% on a pro forma basis. (Pro forma results reflect the inclusion of Shaw Media and the exclusion of the company’s Pay TV business in Q1 2016). Radio revenues dipped 1% to $39.3 million from $39.7 million.
Television segment profit grew 34% to $171.3 million from $128 million year-over-year (up 13% on a pro forma basis), while radio segment profit jumped 20% to $11.6 million from $9.7 million.
Other highlights from Corus’ Q3 financial results include:
Television
– Advertising revenues increased 33% in Q3 2017 (flat on a pro forma basis);
– Subscriber revenues increased 26% in Q3 2017 (up 4% on a pro forma basis);
– Merchandising, distribution and other revenues increased 47% in Q3 2017 (up 44% on a pro forma basis);
– Segment profit margin of 41% in Q3 2017 compared to 40% in the prior year comparable period.
Radio
– Advertising revenues were flat in Q3 2017;
– Segment profit margin of 30% in Q3 2017, compared to 24% in Q3 2016.
