Corus Entertainment’s fiscal 2025 Q3 earnings report showed an 11% decrease to $274.5 million from $308.2 million in television segment revenues from the same period last year.

For the three months ending May 31, this reflected segment profits of about $62.6 million, which is 8% less than in the same 2024 period.

Q3 2025 marks the first report since the departure of co-CEO Troy Reeb earlier this month. John Gossling now runs Corus as sole CEO and interim CFO. Thanking Reeb for his contributions to the company, Gossling explained during the earnings call that “the board decided to refer to a more typical structure with a single CEO.”

Within the segment, advertising revenue declined 15%, subscriber revenues dropped 5% while distribution, production and other revenue also dropped 5%. According to Corus’ Q3 report, the advertising decline is specified to the food, health, beauty, retail, iGaming and automotive categories, although government, travel and entertainment saw increases. Q4 television advertising revenue declines are expected in the 20% range, Gossling explained.

The drop in subscriber revenue was attributed to declines in the traditional linear business as well as the shutdown of three specialty television networks. 2024 saw the broadcaster shut down OWN, among others. The decrease in distribution, production and other revenue was attributable to fewer episode deliveries and reduced service work.

Gossling highlighted the Dec. 30, 2024 launch and reported success of Corus’ Home and Flavour Networks, which officially launched on Dec. 30, 2024. Key programming includes Proper Television’s Beer Budget Reno as well as the Nikki Ray Media Agency series Rentovation, Big Chocolate Showdown, House of Ali and Top Chef Canada (pictured). According to the executive, the networks are both top 20 English-language specialty service networks, and the number one and two lifestyle networks in Canada. He also noted overall views for Global News is up 4% year-over-year and 6% for the year-to-date, while Global TV itself was “number one in core primetime for fall 2024 and spring 2025 in the adults 18-plus demo.”

Doug Spence, VP, finance – planning, treasury and strategy, noted during the earnings call that Corus’ television segment’s employee costs dropped 10% as a result of headcount reductions compared to Q3 2024. Since August 2022, Corus has cut its employees by nearly 30%, according to Gossling.

The segment’s quarterly expenses totaled $211.8 million for the quarter, down 12% compared to last year. Spence attributes this to 3% lower amortization of program rights, a $9 million decrease in the amortization of film investments, which includes changes in film tax credit assumptions and the sale of Aircraft Pictures in August 2024, as well as a decrease in other costs of sales of approximately $5 million “related to certain digital conditions.”

Overall revenues also saw a significant 10% decline, to $297.8 million from $331.8 million in the prior year’s quarter. Net loss for the quarter stood at $7.3 million. The company reported a free cash flow of negative $32.5 million in Q3 and positive $3.3 million year-to-date compared to $18.4 million in Q3 2024 and $75 million year-to-date in the same comparable period.

The company’s radio segment revenues decreased only 1% to $23.3 million from $23.6 million.

Regarding Corus’ appearance at the recent Canadian Radio-television and Telecommunications Commission’s broadcasting system hearings, Jennifer Lee, chief administrative officer, chief legal officer and corporate secretary, reiterated that the company is looking for “smarter rules.”

“We’re looking for some fairness and some fair competition, especially for broadcasters like us with both domestic [broadcast distribution undertakings] and foreign streamers,” she said.

As of May 31, Corus’ total debt stands at approximately $1.07 billion, with a net debt to segment profit ratio of 5.39. In March, the company updated its credit facility which includes improved terms such as debt to cash flow ratio of 9.5 times to one through the end of this year and an extension of the maturity date to March 20, 2027.

Gossling acknowledged the company’s difficult situation. “We’ve learned over time that … our reliance on linear is putting us in a tougher spot.”

Image courtesy of Corus Entertainment