UPDATE 1-Canada's Corus posts lower-than-expected profit

Wed Jul 13, 2016 7:47am EDT
 
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July 13 (Reuters) - Canadian media company Corus Entertainment Inc reported a lower-than-expected quarterly adjusted profit as expenses jumped about 72 percent.

Corus, which bought assets from sister company Shaw Communications Inc in a C$2.65 billion deal that closed on April 1, said revenue jumped 77.6 percent in the quarter ended May 31.

The company faces a Canadian market in which viewers are steadily reducing or even eliminating cable television, with regulators helping hasten that trend with rules to unbundle large content packages.

Corus, which operates a network of Canadian radio stations and television channels, was spun off from Shaw more than 15 years ago. Both companies are controlled by the Shaw family.

Net loss attributable to shareholders widened to C$15.8 million ($12 million), or 10 Canadian cents per share, for the third quarter, from C$8.1 million, or 9 Canadian cents per share, a year earlier.

Excluding items, the company earned 34 Canadian cents per share. Analysts on average had expected 39 Canadian cents, according to Thomson Reuters I/B/E/S.

The company's revenue rose to C$360.8 million, below the estimated C$374.6 million.

Costs and expenses jumped to C$230.6 million. ($1 = C$1.3023) (Reporting by Alastair Sharp in Toronto and Arathy S Nair in Bengaluru; Editing by Savio D'Souza and Don Sebastian)