Canada's Corus profit halves on tough radio competition
(Reuters) - Canada's Corus Entertainment Inc (CJRb.TO: Quote) reported that its profit nearly halved in the fourth quarter as a rise in TV subscribers and merchandising revenue failed to offset the weakness in its radio business.
The company's radio stations face stiff competition from U.S. internet radio companies such as Pandora Media Inc (P.N: Quote) and Spotify.
Net profit attributable to shareholders fell to C$11.9 million ($11.45 million), or 14 Canadian cents per share, in the fourth quarter ended August 31.
Corus, which is controlled by the Shaw family, earned C$23.3 million, or 28 Canadian cents per share, a year earlier.
Adjusted earnings were 31 Canadian cents per basic share in the latest quarter, short of analysts' average estimate of 37 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Consolidated revenue fell marginally to C$193.6 million. Revenue from radio fell 8 percent and accounted for a little less than a fourth of total revenue.
Revenue from TV rose 1 percent, helped by a rise in specialty advertising and subscribers.
Corus's television content includes Oprah Winfrey Network (Canada) and Nickelodeon (Canada) channel, which airs shows such as SpongeBob Square Pants and Dora the Explorer.
Shares of Corus, closed at C$24.75 on the Toronto Stock Exchange on Wednesday.
(Reporting By Sneha Banerjee in Bangalore; Editing by Sriraj Kalluvila and Savio D'Souza)
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