TORONTO – Revenues and profits were up across nearly all segments for Corus Entertainment in the first quarter of fiscal 2007, ended November 30th, 2006.
“The positive momentum of last year has continued in our first quarter results in terms of both ratings for and revenues,” said John Cassaday, president and CEO, in the press release. “Strong advertising and subscription growth from specialty television and solid national advertising sales in radio were the major contributors to our positive results.”
Of course, what was on everyone’s mind Wednesday morning was Alliance Atlantis and its impending sale. "We are and continue to be highly interested in the assets," said Cassaday during a conference call with the financial community. "We feel we’re the logical strategic buyer with the greatest synergies."
So, asked one analyst, since there’s little left to buy, is Corus now a seller? "It certainly is my view we can continue to grow the business," said Cassaday, reiterating Corus is not a seller. "It’s my view and that of the controlling shareholder (JR Shaw)."
Cassaday said there are a number of new products coming in 2007 that will maintain growth, including Cosmo TV – a partnership between the Canadian TV company and Hearst Corp., owners of Cosmopolitan magazine. (Look for more details from Cartt.ca soon on this one.)
Consolidated revenues for the first quarter ended November 30, 2006 were $209.2 million, up 7% from Q1 2006. Consolidated segment profit was $79.9 million, up 15% and net income for the quarter was $36.7 million, compared to $31.4 million in the same quarter of last year.
Corus Television (YTV, W, Scream, Movie Central, etc.) contributed quarterly revenues of $122.6 million, up 10% over last year, "led by continued specialty advertising growth of 13% and subscriber growth of 11%. Quarterly segment profit increased to $60.5 million, up 15% from $52.6 million last year," reads the release.
Corus Radio revenues (50 stations) were $75.6 million, up 4% from Q1 ’06. Segment profit was $23.6 million, up 8% from the prior year. "It was a very strong quarter for national advertising versus local," said radio president John Hayes during the analysts call. While local sales didn’t fall way off, national sales made up more of the company’s overall radio revenue.
He added the second quarter is looking softer, in part to the so-far non-wintry winter. "A lot of retailers don’t have the sales they anticipated from the snow-related products they sell," said Hayes.
Corus Content revenues (Nelvana) were $11.7 million, down 10% from $13.1 million last year. Segment profit was $1 million, compared to break even last year.
– Greg O’Brien
