April 10, 2008 / 11:48 AM / 10 years ago

Corus profit jumps, helped by tax recovery

TORONTO (Reuters) - Canadian radio and specialty-TV company Corus Entertainment Inc (CJRb.TO) reported an almost-doubled second-quarter profit on Thursday, boosted in part by a strong performance from its broadcasting businesses and income-tax recoveries.

The company, which also owns the Nelvana animation house, said it earned C$35.4 million ($34.7 million), or 41 Canadian cents a share, in the three months ended February 29, up from a profit of C$19.5 million, or 22 Canadian cents a share, in the year-earlier period.

Corus said it was helped by C$13.2 million in recoveries related to income tax changes.

Revenue for the second quarter was C$178.7 million, up from C$174.7 million for the same period last year. This included C$104.6 million from its Corus Television division and C$61.5 million from its Corus Radio unit.

Analysts had expected the company to earn 25 Canadian cents a share on revenue of C$184.5 million, according to Reuters Estimates.

“The strength of the Corus brands was evident once again in the second quarter,” Chief Executive John Cassaday said in a release.

“Our specialty television advertising revenue increased by 8 percent and our radio revenue increased by 4 percent. Our content division is on track and profitable once again in the quarter.”

He said the company continues to struggle with its radio operations in the province of Quebec, which are being challenged in part by a weak economy.

“Unfortunately, Quebec radio remains stalled due to continued soft markets, which we attribute to a general softness in the Quebec economy and an unsettled television advertising market, which we believe is affecting radio demand.”

Corus shares rose 53 Canadian cents, or 2.8 percent, to C$19.15 on the Toronto Stock Exchange on Thursday morning.

($1=$1.02 Canadian)

Reporting by Scott Anderson and Wojtek Dabrowski; Editing by Peter Galloway

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