Corus Entertainment has secured an agreement with its lenders to keep its cash flow ratio up into March of next year.

The deal was announced Friday (Oct. 25) as the broadcaster reported its year-end financial results, which saw a 16% decline in consolidated revenue for the fiscal year.

The agreement with the bank group, led by RBC Capital Markets and TD Securities, will see Corus’s revolving facility reduced to $150 million from $300 million, allowing Corus to request advances up to $65 million. Its debt to cash flow ratio is set at 5.75 until Dec. 31, changing to 7.25 between Jan. 1 and March 31, 2025.

Corus co-CEO and CFO John Gossling said in a statement the deal “is an important step in our more comprehensive plan to address our balance sheet and facilitates the execution of our business strategy.”

In a call with investors, Gossling said the Corus has “essentially” reached its goal of reducing its workforce by 800, adding the “mix is a little different than expected,” but they hit their target from a dollar-savings perspective.

He said the company is open to further divestment from its assets, following the sale of Toon Boom Animation and its majority stake in Aircraft Pictures. “We’re looking under every rock to see if there are things that might generate cash proceeds [to repay term loans],” said Gossling.

Gossling, however, declined to comment on news reports of a potential sale to competitor Quebecor.

“It’s all speculation,” he said, adding that Corus will not be commenting on future news reports about potential acquisitions. “There’s probably certain things that aren’t even remotely true in what you’re reading.”

The company has seen advertising interest through its rebranded channels Home and Flavour. Co-CEO Troy Reeb said a “number of advertisers” have committed to being launch partners for the new specialty channel brands when they debut on Dec. 30. However, Reeb could not speculate on the performance of advertising beyond Q1 2025, which Corus predicted will see more buoyancy in the latter end of the quarter.

Consolidated revenue hit $1.27 billion for year-end fiscal 2024, down from $1.51 billion in the previous fiscal. Television revenue was $1.18 billion, down 16% from $1.4 billion in 2023.

Advertising revenue decreased by 16% due to ongoing declines from an “oversupply of digital inventory in the market,” according to the financial report. Subscriber revenue decreased by 6% due to declines in cable subscribers and a steady level of digital subscribers.

Distribution, production and other revenue fell by 61% due to reduced service work, the sale of Toon Boom and a higher revenue level in the prior fiscal year from multi-year licensing deals through Corus Studios.