Radio Down For Corus In Q1
January 14, 2009 at 9:42 AM (PT)
CANADA's CORUS ENTERTAINMENT first fiscal quarter consolidated revenues rose 1% year-to-year to C$216.8 million, with net income rising from C$39.4 million (C$0.47 basic and C$0.46 diluted) to C$40.6 million (C$0.51 basic and C$0.50 diluted).
The company's CORUS RADIO division fell 5% to C$75.5 million, with segment profit off 14% to C$22 million.
"This was a strong quarter for CORUS, as we continued to grow the top line in a challenging market," said Pres./CEO JOHN CASSADAY. "We incurred significant expenses in the quarter to support the launches of COSMOPOLITAN TV, VIVA and HBO CANADA and in NICKELODEON digital rights. These investments, which represented an incremental expense of almost C$5.5 million, position us well for the future."
The company has reduced its segment profit guidance to between C$255 million and C$265 million from the original guidance of C$270 million and C$280 million. The company says that the "challenging advertising market will continue to have a greater effect on its Radio division results given that division's reliance on advertising revenues, particularly local ad revenues, and its greater reliance on advertising sectors that have seen larger declines than average."
The company's free cash flow guidance of between C$70 million and C$90 million remains unchanged.
CORUS also announced monthly dividends of C$0.049585 per Class A share and C$0.05 per Class B share payable on each of FEBRUARY 27, MARCH 31, and APRIL 30 to shareholders of record at the close of business on FEBRUARY 13, MARCH 13, and APRIL 15, respectively.