TORONTO – Despite a 77.6% lift in revenues, merger expenses helped to widen third quarter losses at Corus Entertainment, the company said Wednesday.
For the period ended May 31, 2016, consolidated revenues grew to $360.8 million from $203.1 million in the same period last year, due in part to the addition of Shaw’s Media’s properties. Consolidated segment profit of $130.2 million jumped 90% from $68.7 million year-over-year.
Net loss attributable to shareholders for the quarter was $15.8 million versus $8.1 million in Q3 2015. The company said that the loss includes business acquisition, integration and restructuring costs of $29.3 million and debt refinancing costs of $61.2 million. Adjusting for the impact of these items resulted in an adjusted net income attributable to shareholders of $53.0 million in the quarter.
This is the first quarter to include the combined results of Corus’ $2.65B acquisition of Shaw Media which closed April 1, 2016.
"We are pleased with the tremendous progress made by our talented and committed team as they move quickly to realize the benefits of our new scale and maximize cost synergies”, said president and CEO Doug Murphy, in the news release. “Moving forward, our focus will be on the pursuit of revenue and cost synergies, strong execution on integration and advancing our strategic priorities, which will deliver value to our shareholders over the longer term."
Corus’ television segment revenues for the quarter were $321.2 million, nearly doubling from $162.8 million in the same period last year, while radio revenues fell 2% to $39.6 million from $40.4 million. Television segment profit grew 100% to $128.0 million from $64.1 million year-over-year, while radio segment profit grew 2% from $9.46 million to $9.67 million.
Other highlights from Corus’ financial results include:
Television
– Advertising revenues increased 236% in Q3 2016;
– Subscriber revenues increased 16% in Q3 2016;
– Merchandising, distribution and other revenues increased 24% in Q3 2016;
– Adjusted segment profit margin was 40% in Q3 2016.
Radio
– Segment profit margin of 24% in Q3 2016;
