CORUS ENTERTAINMENT ANNOUNCES FISCAL 2025 FIRST QUARTER RESULTS
Canada NewsWire
TORONTO, Jan. 10, 2025
-- Consolidated revenue decreased 12% for the quarter
-- Consolidated segment profit(1) decreased 30% for the quarter
-- Consolidated segment profit margin(1) of 26% for the quarter
-- Net income attributable to shareholders of $11.9 million ($0.06 income
per share basic) for the quarter
-- Free cash flow(1) of a negative $10.1 million for the quarter
TORONTO, Jan. 10, 2025 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its first quarter financial results today.
"Our strong fall schedule across Global and our specialty portfolio delivered share gains in linear viewing and impressive digital audience growth in our first quarter," said Troy Reeb, Co-Chief Executive Officer. "In the near term, we expect new winter programming to support positive trends in both news and entertainment audiences, and we look forward to building on the successful launch of our new lifestyle brands, Flavour Network and Home Network, which have already proven popular with viewers and advertisers."
"Our results were in line with the first quarter outlook we provided, reflecting the return to a regular fall programming schedule and lower advertising demand," said John Gossling, Co-Chief Executive Officer and Chief Financial Officer. "We are encouraged by the emerging strength of our product and audiences but given industry and economic conditions, our commitment to pursue further cost reductions remains an integral part of our more comprehensive plan to right-size our business, increase our focus on high-margin assets with growth potential and take necessary steps to strengthen our balance sheet."
Financial Highlights
Three months ended
November 30 %
(in thousands of Canadian dollars 2024 2023 Change
except per share
amounts)
Revenue
Television 303,629 342,433 (11 %)
Radio 23,542 27,471 (14 %)
327,171 369,904 (12 %)
Segment profit (loss) (1)
Television 85,964 121,758 (29 %)
Radio 3,867 4,545 (15 %)
Corporate (5,608) (5,454) (3 %)
84,223 120,849 (30 %)
Segment profit margin (1)
Television 28 % 36 %
Radio 16 % 17 %
Consolidated 26 % 33 %
Net income attributable to shareholders 11,908 32,711 (64 %)
Adjusted net income attributable to
shareholders (1) 28,372 41,247 (31 %)
Earnings per share:
Basic $0.06 $0.16
Diluted $0.06 $0.16
Adjusted basic (1) $0.14 $0.20
Free cash flow (1) (10,149) 23,708 (143 %)
(1) In addition to disclosing results in accordance
with International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards
Board ("IASB"), the Company also provides supplementary
non-IFRS measures as a method of evaluating the Company's
performance and to provide a better understanding
of how management views the Company's performance.
These non-IFRS or non-Generally Accepted Accounting
Principles ("GAAP") measures can include: segment
profit (loss), segment profit margin, free cash flow,
adjusted net income attributable to shareholders,
adjusted basic earnings per share, net debt to segment
profit, and new platform revenue. These are not measurements
in accordance with IFRS and should not be considered
as an alternative to any other measure of performance
under IFRS. Please see additional discussion and reconciliations
under the Key Performance Indicators and Non-GAAP
Financial Measures section of the Company's First
Quarter 2025 Report to Shareholders.
Segment Revenue
Three months ended
November 30, %
(in thousands of Canadian dollars) 2024 2023 Change
Revenue 303,629
Television 342,433 (11 %)
Advertising 176,689 209,296 (16 %)
Subscriber 115,698 118,250 (2 %)
Distribution, production and other 11,242 14,887 (24 %)
Radio 23,542 27,471 (14 %)
Total Revenue 327,171 369,904 (12 %)
New platform revenue percentage (1) 12 % 12 % (9 %)
(1) New platform revenue does not have a standardized
meaning prescribed by IFRS. For definition and explanation,
see the discussion under the Key Performance
Indicators and Non-GAAP Financial Measures section
of the First Quarter 2025 Report to Shareholders.
Operational Highlights
Following the launch of its successful Fall Schedule, Corus was the only Canadian broadcaster that saw an increase in its overall share of viewing(1) . Total hours streamed across streaming platforms (STACKTV, the Global TV App and Pluto TV) this Fall grew 24%(2) . In addition, Corus successfully launched two new lifestyle channel brands on December 30, 2024, and continued to implement cost savings initiatives.
-- Corus launches Flavour Network and Home Network. Corus debuted new
lifestyle networks Flavour Network and Home Network on December 30, 2024.
-- Global announces its winter 2025 lineup. Global announced its robust
slate of winter 2025 premieres, featuring Global
original and fan-favourite Family Law, new medical drama Doc,
modern Sherlock Holmes medical mystery series Watson,
new classic game show Hollywood Squares, and returning top hits Saturday
Night Live, Survivor, Matlock, Ghosts and more.
-- Global is home to TV's #1 fall hits. Global was the #1 network in core
prime time this Fall(3). Additionally, Global had 11 of the Top 20
most-watched programs in Canada this fall including #1 reality series
Survivor, #1 late night program Saturday Night Live and #1 comedy
Ghosts(4).
(1) Source: Numeris Personal People Meter ("PPM")
Data. Total Canada. Fall'24 Season-to-date ("STD")
(8/26/2024 to 11/24/2024) vs. Fall'23 STD (8/28/2023
to 11/26/2023) - Confirmed data. Monday-Sunday 2am-2am.
Share of Adults 25-54 total minutes viewed. Based
on Corus Share Report. English Canadian stations excluding
Pay & US stations.
(2) Sources: Amazon Video Central (STACKTV)/Pluto
TV Partner Dashboard/Adobe Analytics (Global TV App),
September'24 to November'24 vs. September'23 to November'23
monthly average.
(3) Source: Numeris PPM Data, Conventional Fall'24
STD (September 16/24 -- December 22/24) confirmed
data, Adults 25-54 unless otherwise stated, Average
Minute Audience ("AMA (000)"), Monday-Sunday 8pm-11pm,
Local Time, Global Total, CTV Commercial, City Total.
(4) Source: Numeris PPM Data, Fall'24 (September 16
-- December 22/24) 3+ airings, Adults 25-54, AMA (000),
Total Canada, Confirmed data, Canadian Conventional
Commercial English Ontario stations.
Financial Highlights
-- Free cash flow(1) of negative $10.1 million in Q1 2025 compared to $23.7
million in the same comparable prior year period. The decrease in free
cash flow(1) for the first quarter is mainly attributable to lower cash
provided by operating activities.
-- Net debt to segment profit(1) was 4.48 times as at November 30, 2024, up
from 3.84 times at August 31, 2024, as a result of a decrease in segment
profit and increase in debt.
-- As of November 30, 2024, the Company had $87.6 million of cash and cash
equivalents and $31.3 million available to be drawn under its Revolving
Facility.
(1) Free cash flow, segment profit and, net debt to
segment profit do not have standardized meanings prescribed
by IFRS. The Company reports on these because they
are key measures used to evaluate performance. For
definitions and explanations, see the discussion under
the Key Performance Indicators and Non-GAAP Financial
Measures section of the First Quarter 2025 Report
to Shareholders and/or Management's Discussion and
Analysis in the Company's Annual Report for the year
ended August 31, 2024 ("2024 MD&A").
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three months ended November 30, 2024 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section and under the Company's SEDAR+ profile at www.sedarplus.ca.
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