Sunday, March 1st6.2°C
25327
24574

Corus says World Cup is partly to blame for lower advertising revenues

TORONTO - Specialty TV channel operator Corus Entertainment says the one-two punch of the World Cup and the Olympics helped devour national advertising revenues this year, affecting the company's overall results.

Chief executive John Cassaday told analysts on Thursday that he believes both events left some advertisers skittish about buying promotional spots on his channels, which include Teletoon, YTV and the W Network.

"A lot of times advertisers say ... 'Even if I'm not an advertiser in the Olympics or even if I'm not an advertiser in the World Cup, I know that those events are going to siphon audience,'" he said during a conference call to discuss the company's third-quarter financial results.

Cassaday said he expects advertising to launch a comeback in the company's next financial year, which starts this fall in time for the new television season.

"We are highly confident that we will see a solid return to advertising growth in fiscal 2015," he said.

For the quarter, Corus (TSX:CJR.B) reported a net loss of $30.3 million or 36 cents per share, including a non-cash broadcast licence and goodwill impairment charge of $75 million. That compared with a net profit of $89.9 million or $1.07 per share in the same year-earlier period.

Revenue grew 14 per cent to $214 million from $187.1 million year over year with the help of newly acquired television channels and radio stations.

Excluding items like the impairment charge, Corus reported adjusted net income of $41.6 million or 49 cents per share, missing analysts' expectations of 51 cents per share, according to data compiled by Thomson Reuters. Analysts had also expected revenue to come in higher at $228 million for the quarter.

In its television operations, subscription revenue grew to $86.5 million from $70 million a year ago, helped by the addition of new assets, including channels formerly owned by Astral.

Corus (TSX:CJR.B) was given regulatory approval late last year to acquire the remaining 50 per cent interest in Teletoon that it did not already own, as well as the acquisition of channels Historia and Series+. In January, Corus was given approval to acquire Ottawa-based radio stations CKQB-FM and CJOT-FM.

However, the new additions to its slate only helped overshadow a decline in subscribers for its pay TV business, which includes HBO Canada, The Movie Network and Movie Central.

Despite the popularity of hit series like "Game of Thrones," some viewers cancelled their packages after the end of a promotional introductory period. Corus has launched a summer retention offer to keep people from ending their subscriptions even though they're considered to be mainly low-margin subscribers.

Follow @dj_friend on Twitter.

The Canadian Press


Read more Business News

24500


Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7991-0.0005
Gold1203.00+6.10
Oil52.14+1.53
Lumber297.20+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



24353

FEATURED Property
2197657240 Mugford Road
4 bedrooms 2 baths
$359,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


25107