John Cassaday sees a bottom in Canada’s radio and TV ad slump.

The Corus Entertainment CEO told analysts Wednesday that Canadian ad spending is rebounding, signaling a possible industry-wide pickup in commercial airtime revenues going forward.

‘We have seen a turnaround in our advertising sales with a return to growth in the low single-digits,’ Cassaday said, after posting first-quarter earnings up 82% to $73.9 million, compared to $41 million in 2008, due mostly to a reversal of $16 million in disputed regulatory fee charges and another $14 million from more favorable income tax rates.

Revenue for the three months to Nov. 30 increased 3% to $222.3 million.

Corus’ TV division saw revenues rise 7% to $151.3 million, with subscriber growth up 8%. While total specialty advertising was flat, Cassaday said the ad spend for kids channels YTV and Teletoon had come out of a slump and was edging upwards.

‘We’re seeing continued good momentum and I think real good indications that the television business is in fact improving, without question,’ he told analysts.

Corus’ challenged radio division, where revenue was off 6% to $71 million, saw its ad spend ‘pacing positive’ in Quebec, Ontario and Manitoba, while Alberta and British Columbia remained soft.

‘We’ve had nice results there,’ Cassaday said of radio station results in Toronto, Canada’s biggest and Corus’ most important market.

The Corus boss, while insisting the ad-spend recovery will carry on through fiscal 2010, had less to say about a rumored $65 million investment in rival Canwest Global Communications as it restructures.

Cassaday told analysts his eyes are only on certain Canwest Global specialty channels.

‘We do want to reaffirm our position that… our interest in these assets are in specific specialty assets,’ he reiterated.

‘Nothing has changed from our previously stated position,’ Cassaday added.