TORONTO – Soft advertising revenues helped to push down revenues and profits at Corus Entertainment.
For the fourth quarter ended August 31, 2015, net income attributable to shareholders was $17.8 million, down from $23.7 million year-over-year, and included business acquisition, integration and restructuring costs of $8.3 million. Removing the impact of this item resulted in an adjusted net income attributable to shareholders of $24.0 million in the quarter.
Consolidated revenues for the quarter were $193.6 million, down 4% from $201.6 million last year, while consolidated segment profit dropped 5% to $55.5 million from $58.3 million last year.
Corus’ television segment revenues for the quarter were $154.3 million, down from $159.8 million last year, while radio revenues fell to $39.3 million from $41.7 million. Television segment profit dropped 8% to $52.6 million from $57.0 million year-over-year, while radio segment profit plunged 11% to $8.5 million from $9.5 million last year.
For fiscal 2015, consolidated revenues fell 2% to $815.3 million; consolidated segment profit was down 4% to $277.2 million, and net loss attributable to shareholders was $25.2 million versus a net income attributable to shareholders of $150.4 million last year. Free cash flow of $201.2 million was up 15% for the fiscal year.
Other highlights from Corus’ financial results include:
Television
– Specialty advertising revenues decreased 10% in Q4 2015 and 6% for the year;
– Subscriber revenues decreased 1% in Q4 2015, but increased 2% for the year;
– Merchandising, distribution and other revenues increased 1% in Q4 2015 and 7% for the year;
– Segment profit margin of 34% in Q4 2015 and 40% for the year.
Radio
– Segment revenues decreased 6% in both Q4 2015 and for the year;
– Segment profit decreased 11% in Q4 2015 and 19% for the year;
– Segment profit margin of 22% in Q4 2015 and 23% for the year.
"We were very pleased to deliver record-breaking free cash flow and maintain our margins this year, despite soft advertising revenues," said president and CEO Doug Murphy, in a statement. "This is an exciting time for us. Our newly appointed Executive Leadership Team is fully focused on the successful execution of our strategic priorities, which are driving our transformation from a traditional broadcaster to an integrated media and content business. Though we are still in the early stages, we are confident that we have the right strategies in place and pleased with our progress to-date."
