Earnings: TV Drives Corus Growth

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Corus Entertainment saw growth in its three major business segments in its fiscal third quarter, but the television segment was the catalyst for the company’s strong consolidated results.

On a consolidated basis, Corus revenues for the quarter ended May 31 rose 9% to $197.6m from $181.6m in the same quarter last year. Consolidated business segment profit was up 10% from $63.5m to $57.7m and net income rose to $29.6m from $23.2m in Q3 2006.

Television was the strongest segment, with revenues increasing 9% to $109.2m from $100.6m a year ago.

Growth of 12% in specialty advertising and subscriber growth of 7% led the way. Segment profit was up 9% to $45.6m from $41.7m.

Corus Radio revenue was up by a measure of 4% to $74.8m from $71.9m last year. Local airtime revenues rose 4% in the quarter and national airtime sales rose 10%. Radio profit rose 15% to $24.2m from $21.1m.

On the content side, Corus saw strong revenue growth of 34% to $14.6m in the quarter compared to $10.9m in Q3 2006. Segment profit was $0.1m, compared to $0.5m in the same period last year.

Canada’s Corus Entertainment was formed by the spin-off of Shaw Communication’s media assets. The company’s diversified holdings include cable networks, three television broadcast stations, 50 radio stations and Nelvana Studios, a producer and distributor of animated children’s content.