Thursday, December 18th2.4°C
24124
24285

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

24175


Recent Trending




Today's Market
S&P TSX14346.75+133.36
S&P CDNX665.50+6.47
DJIA17778.15421.28
Nasdaq4748.396+104.085
S&P 5002061.23+48.34
CDN Dollar0.8629+0.0041
Gold1198.00+3.70
Oil54.66-1.81
Lumber336.30+2.10
Natural Gas3.669-0.033

 
Okanagan Companies
Pacific Safety0.13+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.28+0.01
Cantex0.03-0.005
Anavex Life Sciences0.17+0.0041
Metalex Ventures0.055+0.005
Russel Metals26.00-1.18
Copper Mountain Mining1.57+0.03
Colorado Resources0.12+0.015
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.225+0.005

 
23744




FEATURED Property
1880751979 Metcalfe Avenue
5 bedrooms 5 baths
$979,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...

_





24386


Member of BC Press Council


22842