TORONTO — It pitches itself as a “media + content powerhouse.” It has a recently introduced snazzy green, black and white logo designed to fuel new vigor across its media properties. But, is Corus Entertainment a profitable operation in a market that’s had its unique set of challenges?
Yes, the company’s just-released Q3 results indicate. There’s just one problem: its radio brands are suffering, while its TV properties — led by the Global network — are riding high.
For 20 years, Corus has served Canadians as a multimedia operation that today is comprised of 15 TV stations, 39 radio stations, full-service social digital agency so.da, and lifestyle entertainment company Kin Canada.
Some 15 years ago, Global Television became Canada’s third nationally available network, challenging CTV and CBC. On the MVPD side, it offers such popular channels as W Network, HGTV Canada, Food Network Canada, Lifetime, CMT, Cartoon Network, BBC Canada, HISTORY, Showcase, National Geographic, Disney Channel Canada, youth-oriented YTV and Nickelodeon Canada.
It is these properties that helped Corus see its TV segment revenue climb to $421.48 million, from $403 million, in Q3.
Then, there’s the radio division, with properties in Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Ottawa, and its home market of Toronto. Here, Corus operates venerable Classic Rock CILQ “Q107,” “Global News Radio” CFMJ-AM 640 and Alternative CFNY-FM “102.1 The Edge,” a station that has seen numerous challenges in recent years — including the arrival of a direct format competitor that recently enjoyed a signal upgrade: CIND-FM “Indie 88.”
The challenges in Toronto, the nation’s biggest market, and a lack of stations in Montréal, mean Corus Radio must rely on its heritage trio in Calgary (CHQR-AM, “Country 105” and “Q107”) and its Vancouver threesome (CKNW-AM 980, CFOX-FM 99.3 and CFMI-FM “Rock 101”) to drive the profits.
That was a challenge in Q3, as the radio segment saw revenue dip to $36.94 million, from $38.42 million.
Radio segment profit dipped to $9.77 million, from $11.45 million.
In contrast, TV segment profit climbed to $166.7 million, from $160.8 million.
Overall, adjusted net income in Q3 was $66 million, down from $78.1 million.
All dollars are in Canadian currency, valued at $0.76 U.S.
The results weren’t to investors liking. On volume of 2.8 million shares (average volume is 568,350 shares), Corus shares on the TSX tumbled 10.1%, to $5.24.
Adam R. Jacobson reported on this story from Boca Raton, Fla., with reporting in Toronto from correspondent Carina Newton.
