Corus Entertainment's profit misses estimates as costs rise

Thu Apr 6, 2017 8:41am EDT
 
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(Reuters) - Canadian media company Corus Entertainment Inc (CJRb.TO: Quote) on Thursday reported a lower-than-expected profit, hurt by higher costs.

The Toronto-based company's sales, general and administrative expenses more than doubled to C$265.5 million ($198 million) in the second quarter ended Feb. 28.

This is the first time Corus' second-quarter results include its 2016 purchase of media assets from sister company Shaw Communications Inc (SJRb.TO: Quote). The results also exclude Corus' pay TV business, which Corus exited last year.

Corus, which was spun off from Shaw more than 15 years ago, operates a network of Canadian radio stations and children's TV channels including YTV, Nickelodeon and Cartoon Network.

Net income attributable to Corus shareholders fell to C$24.9 million, or 12 Canadian cents per share in the quarter, from C$102.2 million, or C$1.17 per share, a year earlier.

Profit in the year-ago quarter included a gain of C$86.2 million from the sale of Corus' Pay TV assets.

Excluding one-time items, the company earned 13 Canadian cents per share, falling short of analysts' average expectation of 16 Canadian cents, according to Thomson Reuters I/B/E/S.

Corus said revenue jumped 86 percent to C$368.2 million. Analysts on average had expected C$379.5 million.

(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar)