Corus Entertainment Announces Fiscal 2017 Second Quarter Results

  • Consolidated revenues increased 86% for the quarter and 96% for the year-to-date
  • Consolidated segment profit(1) growth of 29% for the quarter and 68% for the year-to-date
  • Consolidated segment profit margin (1) of 28% for the quarter and 35% for the year-to-date
  • Net income attributable to shareholders of $24.9 million ($0.12 per share basic) for the quarter and $96.0 million ($0.48 per share basic) for the year-to-date
  • Adjusted basic earnings per share(2) of $0.13 per share for the quarter and $0.53 per share for the year-to-date

TORONTO, April 6, 2017 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

"Corus delivered solid segment profit growth this quarter, driven by ongoing margin expansion," said Doug Murphy, President and Chief Executive Officer. "As we celebrate our first year together, the continued momentum from our strong overall ratings performance, transformed cost structure and sequentially improving advertising revenue trends is further indication that Corus is right on track."

Financial Highlights 






Three months ended

Six months ended 


February 28,

February 29,

February 28,

February 29, 

(unaudited - in thousands of Canadian dollars except per share amounts) 

2017

2016

2017

2016

Revenues 






Television

335,896

163,432

761,460

347,150


Radio

32,291

34,273

74,708

78,873


368,187

197,705

836,168

426,023






Segment profit (1)






Television

101,399

81,405

285,820

169,440


Radio

6,341

5,182

19,627

17,985


Corporate

(5,057)

(7,008)

(10,778)

(11,968)


102,683

79,579

294,669

175,457






Net income attributable to shareholders 

24,881

102,232

96,027

143,552

Adjusted net income attributable to shareholders (1) (2)

25,577

20,944

106,403

63,428






Weighted average number of shares outstanding





Basic

199,849

87,688

198,572

87,784

Diluted

200,155

87,688

198,743

87,901






Basic earnings per share 

$ 0.12

$ 1.17

$ 0.48

$ 1.64

Adjusted basic earnings per share (1) (2)

$ 0.13

$ 0.24

$ 0.53

$ 0.72

Diluted earnings per share 

$ 0.12

$ 1.17

$ 0.48

$ 1.63






Free cash flow(1)

96,022

24,284

129,931

58,821

(1)

Segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, and free cash flow do not have standardized meanings prescribed by IFRS. The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the Fiscal 2017 Report to Shareholders.

(2)

For the three months ended February 28, 2017, adjusted net income attributable to shareholders excludes business acquisition, integration and restructuring charges of $0.9 million ($0.01 per share). For the six months ended February 28, 2017, adjusted net income attributable to shareholders excludes business acquisition, integration and restructuring charges of $14.1 million ($0.05 per share). For the three months ended February 29, 2016, segment profit has been adjusted to include amortization of disposed Pay TV program rights of $14.2 million ($0.12 per share), while adjusted net income includes the preceding and excludes business acquisition, integration and restructuring charges of $6.0 million ($0.06 per share) and a gain on the disposal of the Pay TV disposal group of $86.2 million ($0.87 per share). For the six months ended
February 29, 2016, segment profit has been adjusted to include amortization of disposed Pay TV assets of $15.6 million ($0.13 per share), while adjusted net income includes the preceding and excludes business acquisition, integration and restructuring charges of $8.4 million ($0.08 per share) and a gain on the disposal of the Pay TV disposal group of $86.2 million ($0.87 per share).

 

Consolidated Results from Operations

Consolidated revenues for the three months ended February 28, 2017 were $368.2 million, an increase of 86% from
$197.7 million last year.  Consolidated segment profit was $102.7 million, up 29% from $79.6 million last year.  Net income attributable to shareholders for the quarter ended February 28, 2017 was $24.9 million ($0.12 per share basic and diluted), as compared to $102.2 million ($1.17 per share basic and diluted) last year.  Net income attributable to shareholders for the second quarter of fiscal 2017 includes business acquisition, integration and restructuring costs of $0.9 million ($0.01 per share).  Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $25.6 million ($0.13 per share basic) in the quarter.  Net income attributable to shareholders for the prior year quarter includes business acquisition, integration and restructuring costs of $6.0 million ($0.06 per share), a gain on the disposal of the Pay Television disposal group of $86.2 million ($0.87 per share), and excludes amortization of disposed of Pay Television program and film rights of $14.2 million ($0.12 per share).  Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $20.9 million ($0.24 per share basic) for the prior year quarter. 

Consolidated revenues for the six months ended February 28, 2017 were $836.2 million, up 96% from $426.0 million last year.  Consolidated segment profit was $294.7 million, up 68% from $175.5 million last year.  Net income attributable to shareholders for the six months ended February 28, 2017 was $96.0 million ($0.48 per share), compared to a $143.6 million ($1.64 per share) last year. Net income attributable to shareholders for the six months ended February 28, 2017, includes business acquisition, integration and restructuring costs of $14.1 million ($0.05 per share).  Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $106.4 million ($0.53 per share basic) for the current fiscal year-to-date.  Net income attributable to shareholders for the six months ended February 29, 2016 includes business acquisition, integration and restructuring costs of $8.4 million ($0.08 per share), a gain on the disposal of the Pay Television disposal groups of $86.2 million ($0.87 per share), and excludes amortization of disposed of Pay Television program and film rights of $15.6 million ($0.13 per share).  Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $63.4 million ($0.72 per share) for the prior fiscal year-to-date. 

Commencing April 1, 2016, 100% of the operating results of Shaw Media Inc. ("Shaw Media"), as well as its assets and liabilities, were fully consolidated as a business combination in accordance with IFRS 3 – Business Combinations and, as a result, Shaw Media was accounted for by applying the acquisition method as of that date.  Shaw Media was reported as part of the Television segment as of April 1, 2016 (further discussion is provided in note 27 of the Company's audited annual consolidated financial statements for the year ended August 31, 2016).

In addition, for fiscal 2016, certain of Corus' Pay Television business' ("Pay TV") assets and liabilities were reclassified as held for disposal effective November 19, 2015 as a consequence of meeting the definition of assets held for sale under IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations.  The disposal group, Pay TV, did not qualify for discontinued operations presentation and as a result, its operating results remained in continuing operations in the consolidated statement of income and comprehensive income for the year ended August 31, 2016.  However, intangible assets classified as held for disposal ceased being amortized effective November 19, 2015 and as a consequence, amortization of program and film rights in the Television segment for the quarter and year-to-date ended February 29, 2016 was lower by $14.2 million and $15.6 million, respectively, than it would have been had amortization on these assets not ceased.  On February 29, 2016, the Pay TV disposition was completed and the related proceeds and gain associated with this disposal group were recognized (further discussion is provided in note 27 of the Company's audited annual consolidated financial statements for the year ended August 31, 2016).

These transactions contributed to the significant year-over-year variances in the consolidated operating results for the second quarter and year-to-date of fiscal 2017, as the prior year includes the operating results of the Pay TV business but does not include the operating results of Shaw Media.   In the prior year's quarter, Shaw Media generated revenues and segment profit of $227.5 million and $51.2 million, respectively, while Pay TV generated revenues and segment profit of $36.4 million and $34.1 million, respectively.  On a pro forma basis, including Shaw Media and excluding Pay TV for the second quarter of last year, total revenues declined 5%, while segment profit increased 6% compared to the prior year.  Segment profit margin of 28% in the second quarter of fiscal 2017 was down from 40% in the prior year (as reported) and up from 25% on a pro forma basis.  In the six months ended February 29, 2016, Shaw Media generated revenues and segment profit of $522.0 million and $169.3 million, respectively, while Pay TV generated revenues and segment profit of $67.8 million and $49.3 million, respectively. On a pro forma basis, including Shaw Media and excluding Pay TV for the same period last year, total revenues declined 5%, while segment profit remained consistent with the prior year.  Segment profit margin of 35% for the six months ended February 28, 2017 was down from 41% in the prior year (as reported) and up from 34% on a pro forma basis.

Operational Results - Highlights

Television

  • Segment revenues increased 106% in Q2 2017 and 119% for the year-to-date [down 5% on a pro forma basis(2) for the quarter and year-to-date]
  • Advertising revenues increased 330% in Q2 2017 [down 4% on a pro forma basis(2)] and 291% for the year-to-date [down 6% on a pro forma basis(2)]
  • Subscriber revenues increased 40% in Q2 2017 [up 1% on a pro forma basis(2)] and 43% for the year-to-date [up 4% on a pro forma basis(2)]
  • Merchandising, distribution and other revenues decreased 47% in Q2 2017 [down 44% on a pro forma basis(2)] and 36% for the year-to-date [down 39% on a pro forma basis(2)]
  • Segment profit(1) increased 25% in Q2 2017 [up 3% on a pro forma basis(2)] and 69% for the year-to-date [down 1% on a pro forma basis(2)]
  • Segment profit margin(1) of 30% in Q2 2017 and 38% for the year-to-date, compared to 50% and 49%, respectively, in the prior year comparable periods [28% and 36%, respectively on a pro forma basis (2)]

Radio

  • Segment revenues decreased 6% in Q2 2017 and 5% for the year-to-date
  • Segment profit(1) increased 22% in Q2 2017 and 9% for the year-to-date
  • Segment profit margin(1) of 20% in Q2 2017 and 26% for the year-to-date, compared to 15% and 23%, respectively, in the prior year comparable periods


(1)

Segment profit and segment profit margin do not have standardized meanings prescribed by IFRS.  The Company reports on these because they are key measures used to evaluate performance.  For definitions and explanations, see discussion under the Key Performance Indicators section of the 2017 Report to Shareholders.



(2)

Pro forma results reflect the inclusion of Shaw Media and the exclusion of Pay TV in the three months and year-to-date ended
February 29, 2016.

 

Corus Entertainment Inc. reports in Canadian dollars.

The unaudited consolidated financial statements and accompanying notes for the three and six months ended
February 28, 2017 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for April 6, 2017 at 8:00 a.m. ET.  While this call is directed at analysts and investors, members of the media are welcome to listen in. The dial-in number for the conference call for local and international callers is 1.416.359.3126 and for North America is 1.800.698.0339.  More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of adjusted net income, adjusted basic earnings per share and free cash flow that are not in accordance with, nor an alternate to, generally accepted accounting principles ("IFRS") and may be different from non-IFRS measures used by other companies.  In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results.  A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders which is available on Corus' website at www.corusent.com as well as on SEDAR.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this report contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees, and can generally be identified by the use of the words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions.  In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.  Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements.  Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements.  Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business;  and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form.  Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive.  When relying on our forward-looking statements to make decisions with respect to Corus, investors and other should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that creates and delivers high quality brands and content across platforms for audiences around the world. The company's portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children's book publishing, animation software, technology and media services. The Corus roster of premium brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada. Visit Corus at www.corusent.com.


CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION








As at February 28,

As at August 31,

(unaudited - in thousands of Canadian dollars)

2017

2016

ASSETS



Current



Cash and cash equivalents

55,777

71,363

Accounts receivable

448,059

379,861

Prepaid expenses and other

23,765

18,835




Total current assets

527,601

470,059




Tax credits receivable

13,570

19,860

Investments and other assets

60,212

46,759

Property, plant and equipment

268,415

282,105

Program and film rights

690,173

682,268

Film investments

50,873

45,164

Intangibles

2,060,216

2,076,237

Goodwill

2,387,652

2,390,652

Deferred income tax assets

82,302

80,281


6,141,014

6,093,385




LIABILITIES AND SHAREHOLDERS' EQUITY



Current



Accounts payable and accrued liabilities

484,261

393,367

Current portion of long-term debt

129,375

115,000

Provisions

14,152

21,390

Income taxes payable

14,435

1,982

Total current liabilities

642,223

531,739




Long-term debt

2,012,462

2,081,020

Provisions

14,146

8,905

Other long-term liabilities

437,647

530,767

Deferred income tax liabilities

483,380

464,607

Total liabilities

3,589,858

3,617,038




SHAREHOLDERS' EQUITY



Share capital

2,228,846

2,168,543

Contributed surplus

10,898

10,444

Retained earnings

141,949

142,499

Accumulated other comprehensive income (loss)

9,960

(3,569)

Total equity attributable to shareholders

2,391,653

2,317,917

Equity attributable to non-controlling interest

159,503

158,430

Total shareholders' equity

2,551,156

2,476,347


6,141,014

6,093,385

 


CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME












Three months ended

Six months ended


February 28,

February 29,

February 28,

February 29,

(unaudited - in thousands of Canadian dollars except per share amounts)

2017

2016

2017

2016

Revenues

368,187

197,705

836,168

426,023

Direct cost of sales, general and administrative expenses

265,504

118,126

541,499

250,566

Depreciation and amortization

23,093

10,606

45,553

21,608

Interest expense

38,957

18,487

78,677

37,377

Business acquisition, integration and restructuring costs

915

6,014

14,080

8,375

Gain on disposition

(86,151)

(86,151)

Other expense (income), net

(3,937)

5,129

2,895

9,054






Income before income taxes

43,655

125,494

153,464

185,194

Income tax expense

11,673

22,360

40,779

39,237






Net income for the period

31,982

103,134

112,685

145,957






Net income attributable to:






Shareholders

24,881

102,232

96,027

143,552


Non-controlling interest

7,101

902

16,658

2,405


31,982

103,134

112,685

145,957






Earnings per share attributable to shareholders:






Basic

$ 0.12

$ 1.17

$ 0.48

$ 1.64


Diluted

$ 0.12

$ 1.17

$ 0.48

$ 1.63






Net income for the period

31,982

103,134

112,685

145,957

Other comprehensive income, net of income taxes:





Items that may be reclassified subsequently to income:






Unrealized foreign currency translation adjustment

(179)

167

213

466


Unrealized change in fair value of available-for-sale investments

(8)

(124)


Unrealized change in fair value of cash flow hedges

2,282

105

13,316

319


Actuarial gain on employee post-employment benefits

3,981

13,065


6,084

264

26,594

661






Comprehensive income for the period

38,066

103,398

139,279

146,618






Comprehensive income attributable to:






Shareholders

30,965

102,496

122,621

144,213


Non-controlling interest

7,101

902

16,658

2,405


38,066

103,398

139,279

146,618

 


CORUS ENTERTAINMENT INC.


CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY




















(unaudited - in thousands of Canadian dollars)

Share
capital

Contributed
surplus

Retained
earnings

Accumulated
other
comprehensive
income (loss)

Total equity
attributable
to
shareholders

Non-
controlling
interest

Total
equity



At August 31, 2016

2,168,543

10,444

142,499

(3,569)

2,317,917

158,430

2,476,347


Comprehensive income

96,027

26,594

122,621

16,658

139,279


Dividends declared

(114,142)

(114,142)

(18,585)

(132,727)


Issuance of shares under dividend reinvestment plan

60,303

60,303

60,303


Actuarial gain on post-retirement benefit plans

13,065

(13,065)


Share-based compensation expense

454

454

454


Reallocation of equity interest

4,500

4,500

3,000

7,500


At February 28, 2017

2,228,846

10,898

141,949

9,960

2,391,653

159,503

2,551,156




















(unaudited - in thousands of Canadian dollars)

Share
capital

Contributed
surplus

Retained
earnings

Accumulated
other
comprehensive
income

Total equity
attributable
to
shareholders

Non-
controlling
interest

Total
equity



At August 31, 2015

994,571

9,471

191,182

7,353

1,202,577

17,334

1,219,911


Comprehensive income

143,552

661

144,213

2,405

146,618


Dividends declared

(50,034)

(50,034)

(5,149)

(55,183)


Issuance of shares under dividend reinvestment plan

9,741

9,741

9,741


Share-based compensation expense

456

456

456


At February 29, 2016

1,004,312

9,927

284,700

8,014

1,306,953

14,590

1,321,543











 


CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS












Three months ended

Six months ended


February 28,

February 29,

February 28,

February 29,

(unaudited - in thousands of Canadian dollars)

2017

2016

2017

2016

OPERATING ACTIVITIES





Net income for the period

31,982

103,134

112,685

145,957

Adjustments to reconcile net income to cash flow from operations:






Amortization of program and film rights

126,686

43,990

254,411

98,253


Amortization of film investments

4,935

4,213

8,962

7,544


Depreciation and amortization

23,093

10,606

45,553

21,608


Deferred income taxes

6,650

(13,845)

7,214

(11,907)


Venture fund distribution gain

(533)


Share-based compensation expense

231

189

454

456


Imputed interest

12,560

10,780

25,753

21,231


Gain on disposition

(86,151)

(86,151)


Payment of program and film rights

(119,263)

(67,385)

(243,362)

(112,514)


Net additions to film investments

4,322

(8,854)

(6,428)

(18,681)


CRTC benefit payment

(5,814)

(1,952)

(11,972)

(4,280)


Other

775

3,031

1,342

3,229

Cash flow from operations

86,157

(2,244)

194,612

64,212

Net change in non-cash working capital balances related to operations

15,842

29,062

(70,265)

(763)

Cash provided by operating activities

101,999

26,818

124,347

63,449






INVESTING ACTIVITIES





Additions to property, plant and equipment

(5,781)

(4,153)

(11,407)

(6,856)

Net proceeds from assets disposed of

188,374

209,474

Business combination

(2,476)

Proceeds from disposition of non-controlling interest

5,250

5,250

Net cash flows for intangibles, investments and other assets

(1,102)

(4,488)

(4,358)

(5,467)

Cash provided by (used in) investing activities

(1,633)

179,733

(10,515)

194,675






FINANCING ACTIVITIES





Decrease in bank loans

(29,292)

(168,735)

(57,472)

(188,734)

Financing fees

(3,428)

(3,428)

Issue of subscription receipts

280,346

280,346

Dividends paid

(26,824)

(18,818)

(52,884)

(40,116)

Dividends paid to non-controlling interest

(5,230)

(1,000)

(18,585)

(5,149)

Other

(254)

(1,291)

(477)

(2,670)

Cash provided by (used in) financing activities

(61,600)

87,074

(129,418)

40,249






Net change in cash and cash equivalents during the period

38,766

293,625

(15,586)

298,373

Less: cash held in escrow

(280,346)

(280,346)

Cash and cash equivalents, beginning of the period

17,011

42,170

71,363

37,422

Cash and cash equivalents, end of the period

55,777

55,449

55,777

55,449

 

CORUS ENTERTAINMENT INC.

BUSINESS SEGMENT INFORMATION


(unaudited - in thousands of Canadian dollars)







Three months ended February 28, 2017



Television

Radio

Corporate

Consolidated

Revenues

335,896

32,291

368,187

Direct cost of sales, general and administrative expenses

234,497

25,950

5,057

265,504

Segment profit (loss)(1)

101,399

6,341

(5,057)

102,683

Depreciation and amortization




23,093

Interest expense




38,957

Business acquisition, integration and restructuring costs




915

Other income, net




(3,937)

Income before income taxes




43,655







Three months ended February 29, 2016



Television

Radio

Corporate

Consolidated

Revenues

163,432

34,273

197,705

Direct cost of sales, general and administrative expenses

82,027

29,091

7,008

118,126

Segment profit (loss)(1)

81,405

5,182

(7,008)

79,579

Depreciation and amortization




10,606

Interest expense




18,487

Business acquisition, integration and restructuring costs




6,014

Gain on disposition




(86,151)

Other expense, net




5,129

Income before income taxes




125,494







Six months ended February 28, 2017







Television

Radio

Corporate

Consolidated

Revenues

761,460

74,708

836,168

Direct cost of sales, general and administrative expenses

475,640

55,081

10,778

541,499

Segment profit (loss)(1)

285,820

19,627

(10,778)

294,669

Depreciation and amortization




45,553

Interest expense




78,677

Business acquisition, integration and restructuring costs




14,080

Other expense, net




2,895

Income before income taxes




153,464







Six months ended February 29, 2016







Television

Radio

Corporate

Consolidated

Revenues

347,150

78,873

426,023

Direct cost of sales, general and administrative expenses

177,710

60,888

11,968

250,566

Segment profit (loss)(1)

169,440

17,985

(11,968)

175,457

Depreciation and amortization




21,608

Interest expense




37,377

Business acquisition, integration and restructuring costs




8,375

Gain on disposition




(86,151)

Other expense, net




9,054

Income before income taxes




185,194


(1)

Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2017 Report to Shareholders.

 

Revenues by type





(unaudited - in thousands of Canadian dollars)




Three months ended

Six months ended


February 28,

February 29,

February 28,

February 29,


2017

2016

2017

2016

Advertising

225,947

77,743

549,351

196,673

Subscriber fees

125,553

89,646

252,017

176,600

Merchandising, distribution and other

16,687

30,316

34,800

52,750


368,187

197,705

836,168

426,023









 

Non-IFRS Financial Measures





(unaudited - in thousands of Canadian dollars)

Three months ended

Six months ended




February 28,

February 29,

February 28,

February 29,




2017

2016

2017

2016

Adjusted Segment Profit






Reported segment profit

102,683

79,579

294,669

175,457


Adjustments:







Amortization not taken on Pay TV assets disposed of

(14,185)

(15,585)


Adjusted segment profit

102,683

65,394

294,669

159,872


Adjusted segment profit margin

28%

33%

35%

38%








Adjusted Net Income Attributable to Shareholders






Net income attributable to shareholders

24,881

102,232

96,027

143,552


Adjustments, net of income tax:







Gain on disposal of Pay TV assets

(76,631)

(76,631)



Amortization of certain Pay TV assets

(10,426)

(11,455)



Business acquisition, integration and restructuring costs

696

5,769

10,376

7,962









Adjusted net income attributable to shareholders

25,577

20,944

106,403

63,428








Adjusted basic EPS

$0.13

$0.24

$0.53

$0.72








Free cash flow




Cash provided by (used in):






Operating activities

101,999

26,818

124,347

63,449


Investing activities

(1,633)

179,733

(10,515)

194,675




100,366

206,551

113,832

258,124


Add back:  cash used in (provided by) business combinations and strategic investments (1)(2)

(4,344)

(182,267)

16,099

(199,303)


Free cash flow

96,022

24,284

129,931

58,821



(1) Strategic investments are comprised of investments in venture funds and associated companies.


(2) Adjusted to remove the impact of disposing the Pay TV business

 

SOURCE Corus Entertainment Inc.

For further information: Doug Murphy, President and Chief Executive Officer, Corus Entertainment Inc., 416.479.6649; John Gossling, Executive Vice President and Chief Financial Officer, Corus Entertainment Inc., 416.479.6100; Dervla Kelly, Vice President, Communications, Corus Entertainment Inc., 416.934.7121

RELATED LINKS
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