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(Reuters) - Canadian media company Corus Entertainment Inc (CJRb.TO) 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) 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.
"Although overall results were still on the weaker side, the outlook for subscriber revenue should be stable while other revenue can be volatile from quarter to quarter," RBC analysts said.
Net income attributable to Corus's shareholders rose to C$71.1 million in the first quarter ended Nov. 30 from C$41.3 million a year earlier.
The company reported earnings of 36 Canadian cents per share, compared with 47 Canadian cents per share, a year earlier.
The Toronto-based company reported revenue of about C$468 million, missing the analysts' average estimate of C$478.7 million.
Corus reported adjusted earnings of 41 Canadian cents per basic share. Analysts on average had expected 45 Canadian cents, according to Thomson Reuters I/B/E/S.
Reporting by Komal Khettry in Bengaluru; Editing by Shounak Dasgupta