TORONTO – With specialty TV ad rates still growing at a double-digit rate and radio stations in many markets tracking ahead of predictions, Corus Entertainment today reported increased revenue, profit and income for the first quarter of fiscal 2006, ended November 30th, 2005.
Led by a 14% increase in specialty television advertising revenue and a 10% increase in radio advertising revenue, “(f)iscal 2006 is off to a great start with particularly strong growth in our television division,” said John Cassaday, president and CEO. “Radio results continued to build on the momentum from last year with same-station revenue up 9%.”
Consolidated revenues for the first quarter ended November 30 were $195.3 million, up 8% from $180.6 million last year. Consolidated segment profit was $69.8 million, up 12% from $62.4 million last year. Net income for the quarter was $31.4 million ($0.73 basic and $0.72 diluted earnings per share), as compared to $29.1 million ($0.68 basic and diluted earnings per share) last year.
Corus Television contributed quarterly revenues of $108.8 million, up from $98.5 million last year led by specialty ad growth of 14% and subscriber growth of 8%. Corus’ pay television asset increased its subscriber base from 748,000 to 767,000 at the end of the quarter. Quarterly segment profit increased to $52 million, up 16% from $44.9 million.
Corus Radio revenues were $72.4 million, up 10% from $65.5 million last year. Segment profit was $21.9 million, up 4% from $21.0 million last year. Revenue and segment profit were impacted by the sale of Corus’ Red Deer assets and the multi-station swap in the province of Québec. On a same station basis, revenue was up 9% and segment profit was up by approximately 12%.
Content division (Nelvana) revenues were $15.7 million, down from $18.9 million last year. Segment profit was $500,000 compared to $100,000 last year. Revenues were down in the quarter as fewer episodes were produced and the Beyblade merchandising revenues declined. The division continues to generate positive cash flow.
