Corus profit misses estimates for 12th time in a row
By Komal Khettry
(Reuters) - Canadian media company Corus Entertainment Inc (CJRb.TO: Quote) reported a lower-than-expected quarterly profit for the twelfth straight quarter, hurt by lower revenue at its television unit on a pro-forma basis.
Shares of the company fell as much as 2.7 percent to C$12.91 in morning trading on Wednesday.
This is the first time Corus' first-quarter results include its 2016 acquisition of media assets from sister company Shaw Communications Inc (SJRb.TO: Quote) and excludes Corus' pay television business, which the company exit last year.
Corus, whose existing content targeting women and children was augmented with the Global News network and lifestyle channels through the C$2.65 billion Shaw deal, said subscriber revenues at the company's television business shot up by 45 percent, or 6 percent on a pro-forma basis.
However, advertising revenue fell 7 percent, while merchandising, distribution and other revenues slumped 33 percent on a pro-forma basis.
"Our Q1 results reflect meaningful improvements in our cost structure, with solid segment profit margins and subscriber revenue growth offset by transitional advertising revenue softness, as anticipated," Chief Executive Doug Murphy said.
Overall revenue at the television business more than doubled to C$425.6 million ($321.35 million), but fell 5 percent on a pro-forma basis.
Analysts at RBC Capital Markets had estimated revenue of C$441 million for the business. Continued...