Saturday, October 25th8.6°C
23888
22501

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

22970


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23890

FEATURED Property
21137441537 Mountain Ave
4 bedrooms 2 baths
$459,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22620