Jeff McIntosh/The Canadian Press
Corus Entertainment Inc. posted a $31.4-million profit for its fiscal third quarter, as the broadcaster's revenues increased 12 per cent over last year with the Canadian economy's recovery from recession.
The Toronto company reported Wednesday its profit was the equivalent of 39 cents per share and contrasted with a year-earlier loss of $145-million or $1.81 per share.
The year-earlier loss included a $172.5-million charge to reflect the impaired value of its broadcast licences and goodwill assets.
Corus said revenue in the third quarter increased to $218.4-million, with its specialty TV channels rising by 14 per cent to $147-million. The company benefited from improvements in ad sales, helped by an improving general economy and a recovery in the auto sector, a major corporate advertiser.
Earlier streamlining efforts at the company's broadcast operations also reduced costs and boosted the bottom line.
"This was an exceptional quarter for Corus, with advertising sales strong for both television and radio," John Cassaday, president and CEO of the company, said in a release before stock markets opened.
"We also benefited from our cost control initiatives. Ad sales continue to pace well ahead in our fourth quarter as the overall economy continues to recover. We are confident in our ability to achieve our earnings guidance for the full fiscal year."
In its financial report, Corus reported its radio division, which has been slower to recover from the 2008-09 recession, saw a nine per cent increase in revenue to $71.4-million.
Corus is a market leader in specialty television and radio with additional operations in pay television, television broadcasting, children's book publishing and children's animation.
Corus's television brands include YTV, Treehouse, Nickelodeon (Canada), W Network, CosmoTV, HBO Canada and Nelvana. The company's 50 radio stations include CKNW in Vancouver, CFOX, CKOI in Montreal, 98.5 FM, and Q107 and 102.1 the Edge in Toronto.
Earlier this year, the company retreated from Quebec's radio market with an $80-million sale of 11 stations to Cogeco Inc. At the time, Corus said the stations weren't profitable enough and would be a better fit with a Quebec-based company.
The CRTC will review the transaction this fall.
As a result of the deal, Cogeco will more than triple its radio stations in the province to 16, including four in Montreal, two in Quebec City and two in Sherbrooke. It already owns five stations in the province as well as cable TV operations and other businesses.