CORUS EARNINGS REPORTED Broadcaster Magazine Corus Entertainment announced continued advertising growth, including a 12% increase in radio advertising revenue and a 16% increase in specialty television advertising revenue, in its third quarter results.
Radio segment profit increased by 21%, while television segment profit was up 15%. Nelvana, the Company's content division, contributed to the momentum with positive earnings and cash flow for the fourth consecutive quarter.
"We were very pleased with our performance in the third quarter. Radio markets, both locally and nationally, continued to be strong and Corus was well positioned to benefit. Our specialty television networks achieved excellent sales growth, offsetting hockey-related losses at our local TV stations," said John Cassaday, President and Chief Executive Officer of Corus Entertainment Inc.
Consolidated revenue for the third quarter was $171.9 million, up 5% from $163.9 million last year. Net income for the quarter was $19.4 million ($0.45 per share), compared to the net loss last year of $51.2 million (loss of $1.20 per share) which resulted from a pre-tax (non-cash) write-down of $85.0 million ($1.41 per share) in the Content division.
"We are very pleased with our radio results in particular. Our strong competitive position and a continued improvement in our financial performance has been very satisfying," added Heather Shaw, Executive Chair of Corus Entertainment Inc. "Additionally, our recent announcement of the launch of our non-linear channel Vortex On Demand with Comcast for the U.S. market clearly marks a new era for delivery of our content as well as recognition of the appeal of Nelvana's programming library."
Corus Entertainment Inc. also announced today that it will seek an amendment to the Restricted Payments Covenant clause from the holders of the senior subordinated notes to increase its restricted payments capacity by U.S.$65.0 million. The amendment will permit the Company to increase its dividend or repurchase its shares or make investments, in each case if deemed appropriate by its Board of Directors.
Corus Entertainment Inc. is a Canadian-based media and entertainment company. Corus is a market leader in both specialty TV and Radio. Corus also owns Nelvana Limited, a leading international producer and distributor of children's programming and products. The company's other interests include publishing, television broadcasting and advertising services. A publicly traded company, Corus is listed on the Toronto (CJR.NV.B) and New York (CJR) Exchanges. Corus' website can be found at www.corusentertainment.com.
Corus Entertainment Inc. reports in Canadian dollars. |