Corus Revenues Fall For Fiscal 2015 Fourth Quarter
October 22, 2015 at 4:37 AM (PT)
CORUS ENTERTAINMENT consolidated revenues fell 4% to C$193,599,000 in fiscal fourth quarter 2015, with radio revenues falling 6% to C$39,261,000. Radio segment profit also fell, from C$9,502,000 to C$8,503,000, and the company's overall adjusted net income attributable to shareholders dropped from C$26,785,000 to C$23,967,000 (28 to 21 cents/share), although the drop in income is being attributed to business acquisition, integration and restructuring costs of C$8.3 million (7 cents/share), meaning the number would have otherwise been up slightly. Free cash flow, on the other hand, jumped from a negative C$7,164,000 to a positive C$45,170,000.
Radio's troubles were attributed to "disappointing results" from the TORONTO cluster, although VANCOUVER saw "strong" revenue growth; the company said that the "significantly lower than planned" results is being addressed by attempts to regain market share in major markets but that the recovery is "taking longer than originally anticipated," leading to taking a C$130 million non-cash impairment charge in broadcast goodwill.
"We were very pleased to deliver record-breaking free cash flow and maintain our margins this year, despite soft advertising revenues," said Pres./CEO DOUG MURPHY. "This is an exciting time for us. Our newly appointed Executive Leadership Team is fully focused on the successful execution of our strategic priorities, which are driving our transformation from a traditional broadcaster to an integrated media and content business. Though we are still in the early stages, we are confident that we have the right strategies in place and pleased with our progress to-date. The optimization of our premium portfolio of Kids brands, with the successful launch of DISNEY CHANNEL (CANADA) and rollout of our suite of innovative TV Everywhere apps, represents the first in a series of strategic steps we are taking to return the Company to growth."
CORUS has also declared a monthly dividend of C$0.094583 per Class A Share and C$0.095 per Class B Share payable on each of NOVEMBER 30, 2015, DECEMBER 30, 2015 and JANUARY 29, 2016 to shareholders of record at the close of business on NOVEMBER 16, 2015, DECEMBER 15, 2015 and JANUARY 15, 2016, respectively.