CORUS ENTERTAINMENT ANNOUNCES FISCAL 2025 THIRD QUARTER RESULTS
- Consolidated revenue decreased 10% for the quarter and 11% for the year-to-date
- Consolidated segment profit(1) decreased 9% for the quarter and 32% for the year-to-date
- Consolidated segment profit margin(1) of 21% for the quarter and 18% for the year-to-date
- Net loss attributable to shareholders of $7.3 million ($0.04 loss per share basic) for the quarter and $51.3 million ($0.26 loss per share basic) for the year-to-date
- Free cash flow(1) of negative $32.5 million for the quarter and positive $3.3 million for the year-to-date
TORONTO, June 26, 2025 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.
"Our third quarter results reflect progress on our plan to reduce the cost base of our business," said John Gossling, Chief Executive Officer. "Television advertising revenue was consistent with our Q3 outlook, with impressive audience performance on Global and our largest specialty brands offset by a challenging industry landscape. Looking ahead, we have secured a stellar line-up of new shows and returning hit programming for the upcoming broadcast season, supporting our pursuit of targeted growth opportunities. Given persistent industry headwinds, we are making steady progress on our capital and debt plan while capturing significant savings and efficiencies through our ongoing right-sizing initiatives."
Financial Highlights
Three months ended | Nine months ended | |||||
May 31, | % | May 31, | % | |||
(in thousands of Canadian dollars except per share amounts) | 2025 | 2024 | Change | 2025 | 2024 | Change |
Revenue | ||||||
Television | 274,522 | 308,198 | (11 %) | 829,959 | 928,690 | (11 %) |
Radio | 23,284 | 23,606 | (1 %) | 65,371 | 72,555 | (10 %) |
297,806 | 331,804 | (10 %) | 895,330 | 1,001,245 | (11 %) | |
Segment profit (loss) (1) | ||||||
Television | 62,667 | 68,412 | (8 %) | 171,243 | 249,073 | (31 %) |
Radio | 5,072 | 2,633 | 93 % | 10,378 | 8,035 | 29 % |
Corporate | (6,132) | (3,510) | (75 %) | (18,288) | (15,979) | (14 %) |
61,607 | 67,535 | (9 %) | 163,333 | 241,129 | (32 %) | |
Segment profit margin (1) | ||||||
Television | 23 % | 22 % | 21 % | 27 % | ||
Radio | 22 % | 11 % | 16 % | 11 % | ||
Consolidated | 21 % | 20 % | 18 % | 24 % | ||
Net loss attributable to shareholders | (7,336) | (769,897) | (51,308) | (746,966) | ||
Adjusted net income (loss) attributable to shareholders(1) | 12,646 | (19,873) | (1,709) | 15,430 | ||
Earnings (loss) per share: | ||||||
Basic and diluted | ($0.04) | ($3.86) | ($0.26) | ($3.74) | ||
Adjusted basic (1) | $0.06 | ($0.10) | ($0.01) | $0.08 | ||
Free cash flow (1) | (32,526) | 18,440 | (276 %) | 3,342 | 75,010 | (96 %) |
(1) | In addition to disclosing results in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company's performance and to provide a better understanding of how management views the Company's performance. These non-IFRS or non-Generally Accepted Accounting Principles ("GAAP") measures can include: segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators and Non-GAAP Financial Measures section of the Company's Third Quarter 2025 Report to Shareholders. |
Segment Revenue
Three months ended | Nine months ended | |||||
May 31, | % | May 31, | % | |||
(in thousands of Canadian dollars) | 2025 | 2024 | Change | 2025 | 2024 | Change |
Revenue |
274,522 |
829,959 | ||||
Television | 308,198 | (11 %) | 928,690 | (11 %) | ||
Advertising | 150,933 | 178,182 | (15 %) | 457,161 | 536,457 | (15 %) |
Subscriber | 111,092 | 116,914 | (5 %) | 338,670 | 352,449 | (4 %) |
Distribution, production and other | 12,497 | 13,102 | (5 %) | 34,128 | 39,784 | (14 %) |
Radio | 23,284 | 23,606 | (1 %) | 65,371 | 72,555 | (10 %) |
Total Revenue | 297,806 | 331,804 | (10 %) | 895,330 | 1,001,245 | (11 %) |
New platform revenue percentage (1) | 12 % | 12 % | (7 %) | 12 % | 12 % | (8 %) |
(1) | New platform revenue does not have a standardized meaning prescribed by IFRS. For definition and explanation, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Third Quarter 2025 Report to Shareholders. |
Operational Highlights
Building on Corus' strong schedule, Global TV was #1 in core primetime for Spring 2025 and Fall 2024(1). Total monthly hours streamed across streaming platforms (STACKTV and the Global TV App) for the Winter/Spring season grew 7% over prior year(2). In addition, Corus continued to implement cost savings initiatives.
- Global announces its 2025/26 lineup with seven new prime time acquisitions, alongside top series and returning favourites. Global TV's roster will deliver 16.5 hours of simulcast programming in primetime this fall and introduces new ensemble workplace comedy DMV, dramas CIA and Sheriff Country, and new singing competition series The Road. The fall schedule also features the return of #1 Comedy Ghosts(3), #1 Reality Show Survivor(3), #1 Late Night Show Saturday Night Live(3), along with the NCIS franchise and popular series 9-1-1, FBI, Matlock and Elsbeth.
- Corus Entertainment announces its 2025/2026 lineup across its Specialty portfolio and streaming platforms. Corus continues its exclusive content partnership with NBCUniversal, delivering Peacock and Sky Original series including The Paper, The Copenhagen Test, PONIES, All Her Fault, and The 'Burbs, as well as returning hits Ted and Bel-Air. Corus' unscripted and reality networks will see the return of The Curse of Oak Island, Top Chef Canada, Gordon Ramsay's Kitchen Nightmares, and Corus Original series House of Ali and Rock Solid Builds, alongside new series Life is Messy, WWII with Tom Hanks, Tiffany Haddish Goes Off and Corus Original series Building Baeumler, Halloween Bakeshop and Holiday Bakeshop. Corus' full 2025/2026 Specialty schedule will be available to stream on STACKTV.
(1) | Numeris Personal People Meter ("PPM") Data, Total Canada, Conventional Spring'25 (January 6, 2025 – June 1, 2025), Fall'24 (September 16, 2024 – December 22, 2024) – confirmed data, Core primetime: Monday-Sunday 8pm-11pm, Local time, Average Minute Audience ("AMA") (000), Adults aged 18+, Canadian Conventional Commercial English National Networks. |
(2) | Amazon Video Central (STACKTV)/Adobe Analytics (Global TV App), January 2025 to May 2025 monthly average vs. January 2024 to May 2024 monthly average |
(3) | Numeris Personal People Meter Data. Total Canada, Spring 2025 (January 6 – June 1, 2025) – confirmed to May 25, 2025, Adults aged 25-54, Average Minute Audience (000's), Canadian Conventional Commercial English, all stations based on 'Total' except for CTV Com, 3+ airings, excludes NHL and NFL Playoffs |
- Free cash flow(1) of a negative $32.5 million in Q3 and positive $3.3 million year-to-date compared to $18.4 million in Q3 and $75.0 million year-to-date, respectively, in the same comparable prior year periods. The decrease in free cash flow(1) for the third quarter is mainly attributable to lower cash provided by operating activities. The decrease for the year-to-date is mainly attributable to lower cash provided by operating activities, offset by higher proceeds from sale of property.
- Net debt to segment profit(1) was 5.39 times as at May 31, 2025, up from 3.84 times at August 31, 2024, as a result of the decrease in segment profit.
- On March 21, 2025, Corus completed an assignment of all the indebtedness and obligations under its Seventh Amended and Restated Credit Agreement dated October 24, 2024 to existing Canadian strategic debtholders. The Company also completed an agreement to amend and restate the Credit Facility, which now matures on March 20, 2027. A copy of the updated Credit Facility is available under the Company's profile on SEDAR+ at www.sedarplus.ca.
- As of May 31, 2025, the Company had $81.9 million of cash and cash equivalents and $45.0 million available to be drawn under its Revolving Facility.
(1) | Free cash flow, segment profit and net debt to segment profit 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 the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Third Quarter 2025 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2024 ("2024 MD&A"). |
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2025 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section and under the Company's SEDAR+ profile at www.sedarplus.ca.
A conference call with Corus senior management is scheduled for June 26, 2025 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https://emportal.ink/4kUERnR. You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.945.7677 and for North America is 1.888.699.1199. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning June 26, 2025, at 11 a.m. ET or accessible by telephone until July 3, 2025, at 1.888.660.6345 (toll-free North America) or 289.819.1450 (local or international), using replay code 85170#. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Risks and Uncertainties
Significant risks and uncertainties affecting the Company and its business are discussed under the heading "Risks and Uncertainties" and "Seasonal Fluctuations" in the 2024 MD&A, as well as in the accompanying quarterly MD&A included in the Third Quarter 2025 Report to Shareholders under the heading "Risks and Uncertainties". These discussions are important to understanding the assumptions and factors which may affect the Company's outlook and results and are incorporated by reference.
Outlook
In the fourth quarter, we expect geopolitical and economic uncertainty and the ongoing over-supply of premium digital video inventory from foreign competitors will contribute to continued lower demand for linear advertising. As such, the year-over-year percentage decline in Television advertising revenue in the fourth quarter of fiscal 2025 is expected to be in the 20 percent range. Amortization of TV program rights is expected to be relatively flat in the quarter compared to the prior year. The Company will continue with its implementation of additional cost reduction initiatives and expects general and administrative expenses to decline in the range of 10 to 15% for the fourth quarter versus the prior year, excluding any potential benefit from the Independent Local News Fund.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP or non-IFRS financial measures of segment profit (loss), segment profit margin, free cash flow, adjusted net income attributable to shareholders, adjusted basic earnings per share, net debt to segment profit, as well as supplementary financial measures not presented in the financial statements such as new platform revenue. Non-GAAP or non IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles ("GAAP") and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP 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 GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-GAAP measures is included in the Company's most recent Report to Shareholders for the three and nine months ended May 31, 2025, which is available on Corus' website at www.corusent.com as well as on SEDAR+ at www.sedarplus.ca.
Caution Concerning Forward-Looking Information
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 document 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 information"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2025, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's ability to manage retention and reputation risks related to its on air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information.
Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the Company's ability to maintain necessary access to loan and credit facilities, the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company's ability to source, produce or sell desirable content and the Company's capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information.
Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company's ability to maintain necessary access to loan and credit facilities, the Company's ability to attract, retain and manage fluctuations in advertising revenue; the impact of imposed and threatened tariffs, including trade disruptions, restrictions on cross-border supply chains, shifting policies, uncertainty, timing and the resolution thereof; the Company's ability to maintain relationships with key suppliers and clients and on anticipated financial terms and conditions; audience acceptance of the Company's television programs and cable networks including new, re-branded or re-programmed channels; the Company's ability to manage retention and reputation risks related to its on-air talent; the Company's ability to recoup production costs; the availability of tax credits; the availability of expected news, production and related credits, programs and funding; the existence of co-production treaties; the Company's ability to compete in any of the industries in which it does business including with competitors which may not be regulated in the same way or to the same degree; the business and strategic opportunities (or lack thereof) that may be presented to and pursued by the Company; 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 including statements, decisions or positions by applicable regulators including, without limitation, the Canadian Radio-television and Telecommunications Commission ("CRTC"), Canadian Heritage and Innovation, Science and Economic Development Canada ("ISED"); changes to licensing status or conditions; unanticipated or un mitigatable programming costs; the Company's ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage its growth; the Company's ability to successfully defend itself against litigation matters and complaints; failure to renegotiate, obtain relief from or meet covenants under the Company's senior credit facility, senior unsecured notes or other instruments or facilities; epidemics, pandemics or other public health and safety crises in Canada and globally; physical and operational changes to the Company's key facilities and infrastructure; labour disruption and work stoppages; cybersecurity threats or incidents to the Company or its key suppliers and vendors; and changes in accounting standards.
Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Company's Management's Discussion and Analysis for the year ended August 31, 2024 (the "2024 MD&A") and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended August 31, 2024 (the "AIF"). Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive.
When relying on the Company's forward looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document and may be updated or amended from time to time. Except as otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information 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 develops, delivers and distributes high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 30 specialty television services, 36 radio stations, 15 conventional television stations, digital and streaming platforms, and social digital agency and media services. Corus' roster of premium brands includes Global Television, W Network, Flavour Network, Home Network, The HISTORY® Channel, Showcase, Slice, Adult Swim, National Geographic and Global News, along with streaming platforms STACKTV, TELETOON+, the Global TV App and Curiouscast. For more information visit www.corusent.com.
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(unaudited - in thousands of Canadian dollars) | As at May 31, | As at August 31, |
2025 | 2024 | |
ASSETS | ||
Current | ||
Cash and cash equivalents | 81,862 | 82,422 |
Accounts receivable | 259,559 | 232,040 |
Income taxes recoverable | — | 25,006 |
Prepaid expenses and other assets | 19,814 | 17,857 |
Total current assets | 361,235 | 357,325 |
Tax credits receivable | 28,696 | 19,756 |
Investments and other assets | 39,645 | 57,325 |
Property, plant and equipment, net | 233,485 | 250,810 |
Program rights | 654,694 | 494,022 |
Film investments | 37,714 | 55,312 |
Intangible assets | 343,718 | 252,358 |
Total assets | 1,699,187 | 1,486,908 |
LIABILITIES AND DEFICIT | ||
Current | ||
Accounts payable and accrued liabilities | 471,417 | 488,098 |
Current portion of long-term debt | — | 9,903 |
Provisions | 20,880 | 25,467 |
Income taxes payable | 3,004 | — |
Total current liabilities | 495,301 | 523,468 |
Long-term debt | 1,079,576 | 1,042,931 |
Other long-term liabilities | 464,997 | 197,499 |
Provisions | 8,922 | 10,697 |
Deferred income tax liabilities | 51,059 | 54,041 |
Total liabilities | 2,099,855 | 1,828,636 |
DEFICIT | ||
Share capital | 281,052 | 281,052 |
Contributed surplus | 2,102,619 | 2,013,797 |
Accumulated deficit | (2,842,962) | (2,784,729) |
Accumulated other comprehensive income | 20,214 | 24,481 |
Total deficit attributable to shareholders | (439,077) | (465,399) |
Equity attributable to non-controlling interests | 38,409 | 123,671 |
Total deficit | (400,668) | (341,728) |
Total liabilities and deficit | 1,699,187 | 1,486,908 |
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Three months ended | Nine months ended | |||
May 31, | May 31, | |||
(unaudited - in thousands of Canadian dollars except per share amounts) | 2025 | 2024 | 2025 | 2024 |
Revenues | 297,806 | 331,804 | 895,330 | 1,001,245 |
Direct cost of sales, general and administrative expenses | 236,199 | 264,269 | 731,997 | 760,116 |
Depreciation and amortization | 22,602 | 27,397 | 67,747 | 87,565 |
Interest expense | 36,762 | 26,004 | 92,880 | 83,165 |
Goodwill, broadcast licence and other asset impairment | — | 960,000 | — | 960,000 |
Debt refinancing | 2,956 | — | 7,333 | 753 |
Restructuring and other costs | 25,282 | 10,893 | 54,397 | 26,961 |
Other expense (income), net | (28,029) | 452 | (24,319) | 135 |
Income (loss) before income taxes | 2,034 | (957,211) | (34,705) | (917,450) |
Income tax expense (recovery) | 7,881 | (184,109) | 11,084 | (173,670) |
Net loss for the period | (5,847) | (773,102) | (45,789) | (743,780) |
|
Other comprehensive loss, net of income taxes | ||||
Items that may be reclassified subsequently to loss: | ||||
Unrealized change in fair value of cash flow hedges | 3,750 | 65 | 1,588 | (2,779) |
Unrealized foreign currency translation adjustment | (1,221) | 84 | 337 | 316 |
2,529 | 149 | 1,925 | (2,463) | |
Items that will not be reclassified to loss: | ||||
Unrealized change in fair value of financial assets | (1,856) | 254 | (6,192) | (6,204) |
Actuarial loss on post-retirement benefit plans | (5,497) | (1,426) | (6,925) | (3,856) |
(7,353) | (1,172) | (13,117) | (10,060) | |
Other comprehensive loss, net of income taxes | (4,824) | (1,023) | (11,192) | (12,523) |
Comprehensive loss for the period | (10,671) | (774,125) | (56,981) | (756,303) |
Net loss attributable to: | ||||
Shareholders | (7,336) | (769,897) | (51,308) | (746,966) |
Non-controlling interests | 1,489 | (3,205) | 5,519 | 3,186 |
(5,847) | (773,102) | (45,789) | (743,780) | |
|
Comprehensive loss attributable to: | ||||
Shareholders | (12,160) | (770,920) | (62,500) | (759,489) |
Non-controlling interests | 1,489 | (3,205) | 5,519 | 3,186 |
(10,671) | (774,125) | (56,981) | (756,303) | |
Loss per share attributable to shareholders: |
($0.04) |
($3.86) |
($0.26) |
($3.74) |
Basic and diluted | ||||
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
|
(unaudited - in thousands of Canadian dollars) |
Share |
Contributed surplus |
Accumulated deficit |
Accumulated other income |
Total deficit attributable to shareholders | Equity attributable to non- controlling |
Total deficit |
As at August 31, 2024 | 281,052 | 2,013,797 | (2,784,729) | 24,481 | (465,399) | 123,671 | (341,728) |
Comprehensive income (loss) | — | — | (51,308) | (11,192) | (62,500) | 5,519 | (56,981) |
Dividends declared | — | — | — | — | — | (2,050) | (2,050) |
Purchase of minority interest | — | 88,731 | — | — | 88,731 | (88,731) | — |
Actuarial loss on post-retirement benefit plans | — | — | (6,925) | 6,925 | — | — | — |
Share-based compensation expense | — | 91 | — | — | 91 | — | 91 |
As at May 31, 2025 | 281,052 | 2,102,619 | (2,842,962) | 20,214 | (439,077) | 38,409 | (400,668) |
|
(unaudited - in thousands of Canadian dollars) |
Share |
Contributed surplus |
Accumulated deficit |
Accumulated other income |
Total equity (deficit) |
Equity attributable to non- controlling |
Total equity (deficit) |
As at August 31, 2023 | 281,052 | 2,012,936 | (2,014,077) | 37,841 | 317,752 | 141,248 | 459,000 |
Comprehensive income (loss) | — | — | (746,966) | (12,523) | (759,489) | 3,186 | (756,303) |
Dividends declared | — | — | — | — | — | (10,073) | (10,073) |
Change in fair value of put option liability | — | — | 854 | — | 854 | (5,146) | (4,292) |
Actuarial loss on post-retirement benefit plans | — | — | (3,856) | 3,856 | — | — | — |
Share-based compensation expense | — | 573 | — | — | 573 | — | 573 |
As at May 31, 2024 | 281,052 | 2,013,509 | (2,764,045) | 29,174 | (440,310) | 129,215 | (311,095) |
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended | Nine months ended | |||
May 31, | May 31, | |||
(unaudited - in thousands of Canadian dollars) | 2025 | 2024 | 2025 | 2024 |
OPERATING ACTIVITIES | ||||
Net loss for the period | (5,847) | (773,102) | (45,789) | (743,780) |
Adjustments to reconcile net loss to cash flow from operations: | ||||
Amortization of program rights | 131,072 | 135,027 | 390,361 | 374,395 |
Amortization (recovery) of film investments | (2,184) | 6,890 | 2,397 | 14,211 |
Depreciation and amortization | 22,602 | 27,397 | 67,747 | 87,565 |
Deferred income tax recovery | (1,005) | (186,302) | (2,600) | (189,425) |
Goodwill, broadcast licence and other asset impairment | — | 960,000 | — | 960,000 |
Write-off of intangible assets | — | — | 4,070 | — |
Loss (gain) on sale of assets | 2 | 15 | (9,657) | (987) |
Share-based compensation expense | 17 | 162 | 91 | 573 |
Imputed interest | 15,135 | 9,854 | 37,509 | 33,275 |
Debt refinancing | 2,956 | — | 7,333 | 753 |
Payment of program rights | (153,689) | (149,981) | (408,413) | (416,163) |
Net spend on film investments | (1,686) | (11,484) | (12,136) | (21,627) |
Other | (1) | 238 | 705 | 458 |
Cash flow from operations | 7,372 | 18,714 | 31,618 | 99,248 |
Net change in non-cash working capital balances related to operations | (36,349) | 4,217 | (30,336) | (14,432) |
Cash provided by (used in) operating activities | (28,977) | 22,931 | 1,282 | 84,816 |
|
INVESTING ACTIVITIES | ||||
Additions to property, plant and equipment | (2,872) | (4,328) | (6,884) | (11,931) |
Proceeds from sale of property | 3 | 37 | 10,098 | 2,261 |
Net cash flows for intangibles, investments and other assets | (680) | (200) | (1,154) | (482) |
Cash provided by (used in) investing activities | (3,549) | (4,491) | 2,060 | (10,152) |
|
FINANCING ACTIVITIES | ||||
Increase (decrease) in credit facility borrowings | 30,000 | (4,583) | 18,435 | (36,069) |
Financing fees | (94) | — | (1,344) | (619) |
Payment of lease liabilities | (4,773) | (4,661) | (14,017) | (13,612) |
Dividends paid to non-controlling interests | (1,050) | (2,403) | (2,050) | (10,073) |
Other | (1,382) | (1,090) | (4,926) | (3,246) |
Cash provided by (used in) financing activities | 22,701 | (12,737) | (3,902) | (63,619) |
Net change in cash and cash equivalents during the period | (9,825) | 5,703 | (560) | 11,045 |
Cash and cash equivalents, beginning of the period | 91,687 | 61,505 | 82,422 | 56,163 |
Cash and cash equivalents, end of the period | 81,862 | 67,208 | 81,862 | 67,208 |
CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT INFORMATION
(unaudited - in thousands of Canadian dollars) | ||||
Three months ended May 31, 2025 | ||||
Television | Radio | Corporate | Consolidated | |
Revenues | 274,522 | 23,284 | — | 297,806 |
Direct cost of sales, general and administrative expenses | 211,855 | 18,212 | 6,132 | 236,199 |
Segment profit (loss) (1) | 62,667 | 5,072 | (6,132) | 61,607 |
Depreciation and amortization | 22,602 | |||
Interest expense | 36,762 | |||
Debt refinancing | 2,956 | |||
Restructuring and other costs | 25,282 | |||
Other income, net | (28,029) | |||
Income before income taxes | 2,034 | |||
Three months ended May 31, 2024 | ||||
Television | Radio | Corporate | Consolidated | |
Revenues | 308,198 | 23,606 | — | 331,804 |
Direct cost of sales, general and administrative expenses | 239,786 | 20,973 | 3,510 | 264,269 |
Segment profit (loss) (1) | 68,412 | 2,633 | (3,510) | 67,535 |
Depreciation and amortization | 27,397 | |||
Interest expense | 26,004 | |||
Goodwill, broadcast licence and other asset impairment | 960,000 | |||
Restructuring and other costs | 10,893 | |||
Other expense, net | 452 | |||
Loss before income taxes | (957,211) | |||
Nine months ended May 31, 2025 | ||||
Television | Radio | Corporate | Consolidated | |
Revenues | 829,959 | 65,371 | — | 895,330 |
Direct cost of sales, general and administrative expenses | 658,716 | 54,993 | 18,288 | 731,997 |
Segment profit (loss) (1) | 171,243 | 10,378 | (18,288) | 163,333 |
Depreciation and amortization | 67,747 | |||
Interest expense | 92,880 | |||
Debt refinancing | 7,333 | |||
Restructuring and other costs | 54,397 | |||
Other income, net | (24,319) | |||
Loss before income taxes | (34,705) | |||
Nine months ended May 31, 2024 | ||||
Television | Radio | Corporate | Consolidated | |
Revenues | 928,690 | 72,555 | — | 1,001,245 |
Direct cost of sales, general and administrative expenses | 679,617 | 64,520 | 15,979 | 760,116 |
Segment profit (loss) (1) | 249,073 | 8,035 | (15,979) | 241,129 |
Depreciation and amortization | 87,565 | |||
Interest expense | 83,165 | |||
Goodwill, broadcast licence and other asset impairment | 960,000 | |||
Debt refinancing | 753 | |||
Restructuring and other costs | 26,961 | |||
Other expense, net | 135 | |||
Loss before income taxes | (917,450) |
(1) Segment profit (loss) does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Third Quarter 2025 Report to Shareholders. |
REVENUE BY TYPE
Three months ended | Nine months ended | |||
May 31, | May 31, | |||
(unaudited - in thousands of Canadian dollars) | 2025 | 2024 | 2025 | 2024 |
Advertising | 172,785 | 200,370 | 518,571 | 604,476 |
Subscriber | 111,092 | 116,914 | 338,670 | 352,449 |
Distribution, production and other | 13,929 | 14,520 | 38,089 | 44,320 |
297,806 | 331,804 | 895,330 | 1,001,245 | |
NON-GAAP FINANCIAL MEASURES
Three months ended | Nine months ended | |||||
(unaudited - in thousands of Canadian dollars, except percentages) | May 31, | % | May 31, | % | ||
New platform revenue | 2025 | 2024 | Change | 2025 | 2024 | Change |
New platform revenue (numerator) | 32,394 | 34,972 | (7 %) | 97,618 | 105,855 | (8 %) |
|
Television advertising revenue |
150,933 |
178,182 |
(15 %) |
457,161 |
536,457 |
(15 %) |
Television subscriber revenue | 111,092 | 116,914 | (5 %) | 338,670 | 352,449 | (4 %) |
Total Television advertising and subscriber revenue (denominator) |
262,025 |
295,096 |
(11 %) |
795,831 |
888,906 |
(10 %) |
New platform revenue percentage | 12 % | 12 % | 12 % | 12 % | ||
Three months ended | Nine months ended | |||
(unaudited - in thousands of Canadian dollars, except per share amounts) | May 31, | May 31, | ||
Adjusted Net Income Attributable to Shareholders | 2025 | 2024 | 2025 | 2024 |
Net loss attributable to shareholders | (7,336) | (769,897) | (51,308) | (746,966) |
Adjustments, net of income tax: | ||||
Goodwill, broadcast licence and other asset impairment | — | 742,016 | — | 742,016 |
Debt refinancing | 2,177 | — | 5,400 | 555 |
Restructuring and other costs | 17,805 | 8,008 | 41,208 | 19,825 |
Write-off of intangible assets | — | — | 2,991 | — |
Adjusted net income (loss) attributable to shareholders | 12,646 | (19,873) | (1,709) | 15,430 |
Basic loss per share | ($0.04) | ($3.86) | ($0.26) | ($3.74) |
Adjustments, net of income tax: | ||||
Goodwill, broadcast licence and other asset impairment | — | $3.72 | — | $3.72 |
Debt refinancing | $0.01 | — | $0.03 | — |
Restructuring and other costs | $0.09 | $0.04 | $0.20 | $0.10 |
Write-off of intangible assets | — | — | $0.02 | — |
Adjusted basic earnings (loss) per share | $0.06 | ($0.10) | ($0.01) | $0.08 |
Three months ended | Nine months ended | |||
(unaudited - in thousands of Canadian dollars) | May 31, | May 31, | ||
Free Cash Flow | 2025 | 2024 | 2025 | 2024 |
Cash provided by (used in): | ||||
Operating activities | (28,977) | 22,931 | 1,282 | 84,816 |
Investing activities | (3,549) | (4,491) | 2,060 | (10,152) |
|
Add: cash used in business acquisitions and strategic investments (1) | (32,526) | 18,440 | 3,342 | 74,664 |
— | — | — | 346 | |
Free cash flow | (32,526) | 18,440 | 3,342 | 75,010 |
(1) | Strategic investments are comprised of investments in venture funds and associated companies. |
(unaudited - in thousands of Canadian dollars) | As at May 31, | As at August 31, |
Net Debt and Net Debt to Segment Profit | 2025 | 2024 |
Total debt, net of unamortized financing fees and prepayment options | 1,079,576 | 1,052,834 |
Lease liabilities | 110,343 | 116,834 |
Cash and cash equivalents | (81,862) | (82,422) |
Net debt (numerator) | 1,108,057 | 1,087,246 |
Segment profit (denominator) (1) | 205,633 | 283,429 |
Net debt to segment profit | 5.39 | 3.84 |
(1) | Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the Quarterly Consolidated Financial Information section of the Third Quarter 2025 Report to Shareholders. |
SOURCE Corus Entertainment Inc (IR Group)
Investor inquiries: Heidi Kucher, Director, Investor Relations, Corus Entertainment Inc., Heidi.Kucher@corusent.com; Media inquiries: Melissa Eckersley, Head of Corporate Communications & Relations, Corus Entertainment Inc., Melissa.Eckersley@corusent.com
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