Corus hit by advertising weakness, warns on outlook
(Reuters) - Canadian media company Corus Entertainment Inc (CJRb.TO: Quote) warned its main businesses would miss their profit forecast this financial year as it faces weaker radio advertising and falling sales of toys and other TV-themed products.
The company's main television business has also been struggling with unstable audience trends, as more subscribers shift to streaming services.
Corus, which airs shows such as SpongeBob SquarePants and Dora the Explorer on its Nickelodeon (Canada) channel, said total revenue fell 2 percent to C$200 million for the quarter ended June 30.
Sales at the merchandising business, which sells toys such as Beyblade and Franklin and Babar, fell 23 percent to C$25.09 million. Radio business sales fell 5 percent to C$47.1 million.
Sales at its TV business, which also caters to women through networks such as Cosmopolitan TV and OWN: Oprah Winfrey Network (Canada), fell 1 percent to C$153 million.
"Our expectations for a stronger back half have not materialized and we will miss the lower end of our segment profit guidance," Chief Executive Officer John Cassaday said.
The company previously forecast 2013 segment profit of C$293 million to C$303 million.
Excluding gains related to the sale of its interest in Food Network Canada, the company earned C$34.5 million, or 41 Canadian cents per basic share, in the third quarter.
Analysts on average had expected earnings of 52 Canadian cents per share on revenue C$207.95 million, according to Thomson Reuters I/B/E/S data. Continued...