Yahoo Finance

• Consolidated Revenue: $270 million, a 10% decrease from the prior year.

• Consolidated Segment Profit: $18 million, impacted by lower revenue and increased amortization and program rights.

• Consolidated Segment Profit Margin: 6%, down from 18% last year.

• Free Cash Flow: $46 million, a 40% increase from last year.

• Net Debt to Segment Profit: 5.04 times, compared to 3.84 times at August 31, 2024.

• TV Segment Revenue: $252 million, down 9%.

• TV Advertising Revenue: Declined 13% in Q1.

• Subscriber Revenue: $112 million, down 5%.

• Radio Segment Revenue: $19 million, decreased 14% from the prior year.

• Radio Segment Profit Margin: Increased to 8% from 4% in the prior year period.

• Warning! GuruFocus has detected 7 Warning Signs with CJREF.

Release Date: April 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Corus Entertainment Inc (CJREF) successfully amended and extended its credit facility, providing improved terms and financial flexibility.

• The company reported a 12% growth in total minutes viewed for Global News across both broadcast and streaming platforms.

• Corus' specialty networks, Home Network and Flavour Network, have become the number one and number two specialty lifestyle networks in Canada.

• The company's streaming portfolio experienced its strongest Q2 ever, with an 18% increase in streamed content over the previous year.

• Corus has implemented significant cost-saving initiatives, resulting in a 12% reduction in G&A expenses and a 15% decrease in employee costs.

Negative Points

• Consolidated revenue for the quarter decreased by 10% compared to the prior year, primarily due to lower television advertising demand and subscription revenue.

• The company is experiencing challenges in its specialty portfolio due to an oversupply of digital video inventory and lower advertising demand on linear television.

• Consolidated segment profit margins fell to 6% from 18% last year, reflecting the impact of lower revenue and increased amortization of program rights.

• Corus anticipates a mid-teens percentage decline in television advertising revenue for Q3 of fiscal 2025 due to oversupply and potential economic impacts.

• The radio segment saw a 14% decrease in revenue due to lower advertising demand and audience declines, although cost containment measures improved profit margins.

Q & A Highlights

Q: Can you clarify the impact of the free view period for Home and Flavour on subscription revenue? A: John Gossling, CFO, explained that the revenue from existing subscribers continued during the free view period. The free view was for non-subscribers, so there was no loss of revenue from existing subscribers.