Corus revenue, profit hold steady in Q2 financials

Gains in both subscriber and merchandising revenues offset a 3% decrease in quarterly TV advertising revenue.
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By Catherine Phillips

Corus Entertainment posted mostly flat year-over-year revenues in its Q2 financial results Thursday, with slight increases across television and radio, though the company saw TV ad dollars decrease.

Total television segment revenues were $336.2 million in the quarter, up slightly from $335.9 million the previous year. Subscriber revenues increased 1% in the quarter, from $125.5 million in 2017 to $127.0 million. Merchandising, distribution and other revenue gains were up 28% (to $19.1 million) in the quarter, which Corus attributed primarily to Nelvana.

The gains helped to offset a 3% decrease in quarterly TV advertising revenue, which fell to $190.1 million in the quarter. Corus attributed the losses to a soft television market combined with the negative impact of the 2018 Winter Olympics.

Overall, the television segment saw a 2% increase in profit to $103.6 million.

Meanwhile, radio revenues increased by 3% with gains in both local and national advertising translating to a segment profit increase of 9%.

Overall consolidated revenues for the quarter came to $369.5 million, up slightly from $368.2 million in the same quarter last year. Year-to-date, however, consolidated revenues fell 1% from $836.2 million last year to $826.9 million.

In its quarterly call with investors, Doug Murphy, president and CEO, said Corus is rethinking how it reaches and defines its audiences, and how to monetize them.

“We’re moving off buying a big bulky demo and we’re talking about specific psychographic and demographic traits like auto intenders, foodies, empty nesters,” he said. “That is really resonating with our advertisers and we’re seeing steady growth in those investment and advertising campaigns.”

Corus recently greenlit five new original series for broadcast on networks in Canada, including the fashion competition series Stitched, three original docu-series (Big Rig Warriors, Rust Valley Restorers, World Without) and the original lifestyle reality show, Island of Bryan.

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From Media in Canada