April 14, 2010 / 12:49 PM / 8 years ago

UPDATE 1-Corus profit down, but says ad recession behind it

* Revenue up 6 pct to C$192.7 million

OTTAWA, April 14 (Reuters) - Corus Entertainment Inc (CJRb.TO) said an “advertising recession” is behind the Canadian TV and radio broadcaster, as it posted a bigger quarterly revenue, but lower profit on Wednesday.

Net earnings fell sharply as Corus took a C$14.3 million ($14.3 million) debt refinancing loss in the three months to end-February. In the same period last year it recorded a one-time gain of C$7.2 million.

Excluding those items, earnings per share fell to 30 Canadian cents from 32 Canadian cents, said Corus, spun out from Canadian cable and telecom operator Shaw Communications (SJRb.TO) in 1999.

Net profit dropped to C$14.6 million, or 18 Canadian cents a share, from C$29 million, or 36 Canadian cents.

Revenue rose 6 percent to C$192.7 million in the second quarter.

Averaged out, analysts expected the company to earn 32 Canadian cents per share on revenue of C$189 million, according to Thomson Reuters I/B/E/S.

“We believe our results in the second quarter and the pacing we are enjoying in the third quarter indicate that the advertising recession is behind us,” said Chief Executive Officer John Cassaday.

“Corus’ specialty and pay television categories and Ontario radio sales are performing very well, and we are also benefiting from strong cost control which has allowed us to improve our margins.” ($1=$1 Canadian) (Reporting by Susan Taylor, editing by Dave Zimmerman)

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