Corus Entertainment Inc. Reports Profit in Fiscal Q4

Corus Entertainment Inc. announced on Friday that it has swung to a profit in its fiscal fourth quarter, thanks to a gain from a business divestiture. However, the company continues to face advertising pressure due to strikes across the media industry.

Strong Financial Performance

For the period ended Aug. 31, the Canadian mass media company reported a profit of 50.4 million Canadian dollars ($36.4 million), or C$0.25 a share. This is a significant improvement compared to the loss of C$367.1 million, or C$1.82 a share, reported in the same period last year.

Gain from Business Divestiture

Corus Entertainment Inc. experienced a gain on business divestiture of C$142.3 million, which helped boost its profitability. However, this gain was partly offset by impairment charges of C$100 million related to broadcast license and brands and trade marks.

Analyst Expectations Surpassed

On an adjusted basis, the company's loss per share stood at C$0.04, surpassing analyst expectations for a wider loss of C$0.09 per share, according to a poll on FactSet.

Stable Revenue and Segment Performance

Corus Entertainment Inc.'s revenue remained relatively flat at C$338.8 million, compared with C$339.6 million during the same period last year. Analysts had anticipated a rise to C$329 million.

The company's television segment, which is its largest, saw no significant change with revenue at C$314.2 million. However, revenue from its radio segment fell by 3% to C$24.6 million.

Advertising Weakness

Chief Executive Doug Murphy acknowledged that the quarter's results reflect the continued weakness in the advertising economy due to the strikes by the Writers Guild of America and The Screen Actors Guild-American Federation of Television and Radio Artists.

As Corus Entertainment Inc. wraps up its fiscal fourth quarter, its swing to a profit shows promising financial performance. Despite the ongoing advertising challenges, the company remains confident in its ability to navigate these obstacles and continue its growth trajectory.

Corus Entertainment Reports Profit in Q4 as Advertising Pressure Persists

Corus Entertainment Inc. announced on Friday a swing-to-profit in its fiscal fourth quarter, largely due to a gain from a business divestiture. However, the company's revenue remained flat as it continues to face advertising pressure resulting from strikes across the media industry.

Strong Financial Performance

For the period ending August 31, the Canadian mass media company reported a profit of 50.4 million Canadian dollars ($36.4 million), or C$0.25 a share. This marks a significant improvement from the loss of C$367.1 million, or C$1.82 a share, recorded in the same period last year.

The company's profit was largely driven by a gain of C$142.3 million from its business divestiture. However, there were partial offsets from impairment charges of C$100 million associated with broadcast licenses and brands/trade marks.

Adjusted Loss Beats Expectations

On an adjusted basis, Corus Entertainment registered a loss of C$0.04 per share. Surprisingly, this narrower loss exceeded analyst expectations of a loss of C$0.09 per share, according to a poll on FactSet.

Stable Revenue Performance

Corus Entertainment reported revenue of C$338.8 million, very close to the previous year's figure of C$339.6 million. Analysts had projected an increase to C$329 million.

While the company's television segment, its largest revenue stream, remained mostly unchanged at C$314.2 million, revenue from its radio segment decreased by 3% to C$24.6 million.

A Challenging Advertising Landscape

Corus Entertainment's Chief Executive, Doug Murphy, acknowledged that the weakness in advertising economy persists due to ongoing strikes by the Writers Guild of America and The Screen Actors Guild-American Federation of Television and Radio Artists.