CORUS ENTERTAINMENT ANNOUNCES FISCAL 2025 SECOND QUARTER RESULTS
Consolidated revenue decreased 10% for the quarter and 11% for the year-to-date
Consolidated segment profit(1) decreased 67% for the quarter and 41% for the year-to-date
Consolidated segment profit margin(1) of 6% for the quarter and 17% for the year-to-date
Net loss attributable to shareholders of $55.9 million ($0.28 loss per share basic) for the quarter and net loss attributable to shareholders of $44.0 million ($0.22 loss per share basic) for the year-to-date
Free cash flow(1) of $46.0 million for the quarter and $35.9 million for the year-to-date
TORONTO, April 11, 2025 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.
"We are pleased with another quarter of strong audience performance, with Global and our largest specialty brands leading the way across platforms," said Troy Reeb, Co-Chief Executive Officer. "Our new lifestyle brands Flavour Network and Home Network are exceeding our expectations, built on Corus' proven ability to curate brands and content that audiences want to watch. In the face of increasing economic uncertainty, our flagship Global News team continues to deliver on our commitment to provide Canadians with a trusted source of news and information."
"Our television advertising revenue was modestly ahead of our outlook for the second quarter, building on the strength of our programming and audiences. At the same time, we recognize that the industry landscape remains challenging with limited visibility," said John Gossling, Co-Chief Executive Officer and Chief Financial Officer. "As such, importantly, we have taken significant steps to progress our capital and debt plan, and our updated credit facility provides enhanced stability as we pursue further right-sizing initiatives and targeted growth opportunities to create a more sustainable future."
Financial Highlights
Three months ended
Six months ended
February 28,
February 29,
%
February 28,
February 29,
%
(in thousands of Canadian dollars except per share amounts)
2025
2024
Change
2025
2024
Change
Revenue
Television
251,808
278,059
(9 %)
555,437
620,492
(10 %)
Radio
18,545
21,478
(14 %)
42,087
48,949
(14 %)
270,353
299,537
(10 %)
597,524
669,441
(11 %)
Segment profit (loss) (1)
Television
22,612
58,903
(62 %)
108,576
180,661
(40 %)
Radio
1,439
857
68 %
5,306
5,402
(2 %)
Corporate
(6,548)
(7,015)
7 %
(12,156)
(12,469)
3 %
17,503
52,745
(67 %)
101,726
173,594
(41 %)
Segment profit margin (1)
Television
9 %
21 %
20 %
29 %
Radio
8 %
4 %
13 %
11 %
Consolidated
6 %
18 %
17 %
26 %
Net income (loss) attributable to shareholders
(55,880)
(9,780)
(43,972)
22,931
Adjusted net income (loss) attributable to shareholders(1)
(42,727)
(5,944)
(14,355)
35,303
Earnings (loss) per share:
Basic and diluted
($0.28)
($0.05)
($0.22)
$0.12
Adjusted basic (1)
($0.21)
($0.03)
($0.07)
$0.18
Free cash flow (1)
46,017
32,862
40 %
35,868
56,570
(37 %)
(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 (loss) attributable to shareholders, adjusted basic earnings (loss) 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 Second Quarter 2025 Report to Shareholders.
Segment Revenue
Three months ended
Six months ended
February 28,
February 29,
%
February 28,
February 29,
%
(in thousands of Canadian dollars)
2025
2024
Change
2025
2024
Change
Revenue
251,808
555,437
Television
278,059
(9 %)
620,492
(10 %)
Advertising
129,539
148,979
(13 %)
306,228
358,275
(15 %)
Subscriber
111,880
117,285
(5 %)
227,578
235,535
(3 %)
Distribution, production and other
10,389
11,795
(12 %)
21,631
26,682
(19 %)
Radio
18,545
21,478
(14 %)
42,087
48,949
(14 %)
Total Revenue
270,353
299,537
(10 %)
597,524
669,441
(11 %)
New platform revenue percentage (1)
13 %
12 %
(7 %)
12 %
12 %
(8 %)
(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 Second Quarter 2025 Report to Shareholders.
Operational Highlights
Building on Corus' strong Winter/Spring schedule, Global TV has delivered significant audience growth of 11% for the full day and 25% in core primetime for the season-to-date(1). Total monthly hours streamed across streaming platforms (STACKTV, the Global TV App and Pluto TV) this Winter grew 18%(2). In addition, Corus continued to implement cost savings initiatives.
Home Network and Flavour Network land top specialty lifestyle rankings. Since the launch of Corus' Home Network and Flavour Network on December 30, 2024, almost 11 million Canadians have tuned-in to enjoy the premium content on these top ranking specialty lifestyle networks(3).
Home Network announces its spring 2025 lineup. Home Network announced its robust spring 2025 lineup, with new seasons of Corus Original series Renovation Resort and Scott's Vacation House Rules. Spring premieres include brand new episodes of House Hunters, Interior Design Masters, George Clarke's Amazing Spaces, and new series Empty Nest Refresh.
W Network debuts its spring 2025 schedule. Spring premieres on W Network include new comedies Laid and Small Town, Big Story. New series from Hallmark Channel include family drama The Chicken Sisters and unscripted series Small Town Setup.
(1) Numeris Personal People Meter ("PPM") Data, Total Canada, Spring'25 Season-to-Date ("STD") (January 6, March 16/25) vs. Spring'24 STD (Jan 8, Mar 17/24), confirmed to March 9/25, Adults 25-54, Average Minute Audience ("AMA") (000), local time. Full day: Monday-Sunday 2am-2am, Core primetime: Monday-Sunday 8pm-11pm
(2) Amazon Video Central, Paramount via Pluto TV Dashboard, Adobe Analytics, December'24 to February'25 monthly average. vs. December'23 to February'24 monthly average.
(3) Numeris Personal People Meter ("PPM") Data, Total Canada, (December 30/24 - March 16/25) - confirmed until March 9/25, Monday-Sunday 2am-2am, Adults 18+ Home/Flavour Cumulative Reach (CumRch) (000) / rank based on 3+ airings, Adults 25-54 Average Minute Audience ("AMA") (000), Canadian Specialty Commercial English networks excluding sports and specials.
Financial Highlights
Free cash flow(1) of $46.0 million in Q2 and $35.9 million year-to-date compared to $32.9 million and $56.6 million year-to-date, respectively, in the same comparable prior year periods. The increase in free cash flow(1) for the second quarter is mainly attributable to higher cash provided by operating activities. The decrease for the year-to- date is mainly attributable to lower cash provided by operating activities, offset by higher proceeds from sale of property.
Net debt to segment profit(1) was 5.04 times as at February 28, 2025, up from 3.84 times at August 31, 2024, as a result of a decrease in segment profit.
On March 21, 2025, Corus announced that it has completed an assignment of all the indebtedness and obligations under its Seventh Amended and Restated Credit Agreement dated October 24, 2024 to existing Canadian strategic debtholders. The Company also completed an agreement to amend and restate the Credit Facility, which now matures on March 20, 2027. A copy of the updated Credit Facility is available under the Company's profile on SEDAR+ at www.sedarplus.ca.
As of February 28, 2025, the Company had $91.7 million of cash and cash equivalents and $64.3 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 Second 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 and six months ended February 28, 2025 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.
A conference call with Corus senior management is scheduled for April 11, 2025 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https: /emportal.ink/3QWzac8. You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.945.7677 and for North America is 1.888.699.1199. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning April 11, 2025, at 11 a.m. ET or accessible by telephone until April 18, 2025, at 1.888.660.6345 (toll-free North America) or 289.819.1450 (local or international), using replay code 16388#. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Risks and Uncertainties
Significant risks and uncertainties affecting the Company and its business are discussed under the heading "Risks and Uncertainties" and "Seasonal Fluctuations" in the 2024 MD&A, as well as in the accompanying quarterly MD&A included in the Second Quarter 2025 Report to Shareholders under the heading "Risks and Uncertainties". These discussions are important to understanding the assumptions and factors which may affect the Company's outlook and results and are incorporated by reference.
Outlook
In the third quarter, we continue to expect the over-supply of premium digital video inventory from foreign competitors and continued generally lower demand for linear advertising. As such, year-over-year percentage declines in Television advertising revenue in the third quarter of fiscal 2025 are expected to be in the mid-teens. Amortization of TV program rights is expected to be relatively flat in the third quarter compared to the prior year. The Company will continue with its implementation of additional cost reduction initiatives and expects general and administrative expenses to decline in the range of 5 to 10% for the third quarter versus the prior year.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP or non-IFRS financial measures of 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, as well as supplementary financial measures not presented in the financial statements such as new platform revenue. Non-GAAP or non-IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles ("GAAP") and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non- GAAP measures is included in the Company's most recent Report to Shareholders for the three and six months ended February 28, 2025, which is available on Corus' website at www.corusent.com as well as on SEDAR+ at www.sedarplus.ca.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information and should be read subject to the following cautionary language:
To the extent any statements made in this document contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking information"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2025, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's ability to manage retention and reputation risks related to its on-air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information.
Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the Company's ability to maintain necessary access to loan and credit facilities, the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company's ability to source, produce or sell desirable content and the Company's capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information.
Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company's ability to maintain necessary access to loan and credit facilities, the Company's ability to attract, retain and manage fluctuations in advertising revenue; ...
