Earnings: TV Drives Corus Growth


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.