Corus Entertainment Inc (CJREF) Q2 2025 Earnings Call Highlights: Navigating Revenue Challenges …

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.

Release Date: April 11, 2025

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

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.

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: 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.