Corus Entertainment posts higher Q3 earnings

A one-time gain from the sale of a Food Network Canada stake offset radio advertising softness and lower merchandising and distribution revenues.

Corus Entertainment posted sharply higher third-quarter earnings Thursday, due largely to selling a stake in Food Network Canada.

The broadcaster saw earnings for the three months to May 31 more than double to $91.5 million, compared to a profit of $45 million in the same period of 2012.

Overall Q3 revenue was $200.06 million, against a year-earlier $204 million.

The profit line was bolstered during the latest quarter by a one-time gain of $55.4 milllion from selling Corus’ non-controlling stake in Food Network Canada.

On the revenue side, TV revenue came to $153 million, just down from a year-earlier $154.7 million.

Ad revenue was $99 million, compared to $97 million in 2012, while subscriber revenue was up slightly to $76 million, against a year-earlier $74.2 million.

Merchandising and distribution revenue was down sharply to $25 million, against a year-earlier $32.7 million.

“The third quarter was challenging on a number of fronts, most notably, advertising softness in radio continued and our merchandising, production and distribution businesses faced tough year‐over‐year comparatives,”  John Cassaday, president and CEO of Corus Entertainment, said in a statement.