Corus’ Q3 profit doubles thanks to sale of Food Network holdings
July 11, 2013 | Canadian Press | Comments
Corus Entertainment Inc. saw its net profits more than double in the third quarter, courtesy of the sale of its non-controlling interest in Food Network Canada.
However, the Toronto-based media and entertainment company also said revenue contracted in the latest period and that diminished expectations have forced the company to reduce its full-year guidance on profit.
Corus said Thursday that its net income attributable to shareholders was $89.9 million in the three months ended May 31.
That was up from $43.2 million in the same fiscal 2012 period, largely as a result of a gain from the sale of its non-controlling interest in Food Network Canada for $55.4 million.
Excluding the gain, adjusted income attributable to shareholders would have been $34.5 million down from $43.2 million a year earlier.
Revenue in the three months ended May 31 was $200.1 million, down from $204.1 million.
“The third quarter was challenging on a number of fronts, most notably, advertising softness in radio continued . . . (while) our merchandising, production and distribution businesses faced tough year-over-year comparatives,” president and CEO John Cassaday said in the company’s earnings release.
Cassaday added that despite impressive gains in its core television broadcast business “our expectations for a stronger back half have not materialized and we will miss the lower end of our segment profit guidance” although guidance on free cash flow remained unchanged.
“Looking ahead, we are excited about the opportunity to expand our business through acquisitions that will enable us to enter the Ottawa radio and Quebec specialty television markets, subject to CRTC approval.”
On a segmented basis, revenue from television declined to just under $153 million from $154.7 million, while revenue from radio fell to $47.1 million from $49.3 million.
Corus is a market leader in specialty television and radio with additional assets in pay television, television broadcasting, children’s book publishing, children’s animation and animation software.