“Our results were in line with the first quarter outlook we provided.” That’s what Corus Entertainment co-Chief Executive Officer John Gossling had to say when commenting on the Canadian media company’s fiscal Q1 2025 report.
That said, television revenue was down by 11% for the three-month period ending November 30, 2024; radio revenue declined by 14%.
Toronto-based Corus, home to the Global broadcast TV network in addition to a collection of radio stations including Vancouver’s “Rock 101” and CFOX-FM 99.3; CHQR-AM, “The Edge” and “Country 105” in Calgary; and “Q107” and “The Edge” in Canada’s largest market, saw its net income slide by 64% year-over-year.
On an adjusted basis, it fell by 31% from fiscal Q4 2023.
Gossling, who also serves as Corus’ Chief Financial Officer, acknowledged the dip while remaining positive on what lies ahead. “We are encouraged by the emerging strength of our product and audiences but given industry and economic conditions, our commitment to pursue further cost reductions remains an integral part of our more comprehensive plan to right-size our business, increase our focus on high-margin assets with growth potential and take necessary steps to strengthen our balance sheet,” he said.
With “cost reductions” and “right-sizing” buzzwords that could point to layoffs in 2025, overall revenue declined to $327.17 million CDN, from $369.9 million CDN. Television industry revenue comprises the bulk of Corus’ earnings, and in fiscal Q1 2025 it declined to $303.63 million CDN, from $342.43 million CDN.
Taking into account expenses, this resulted in the following results:
Add it all up, and net income attributable to shareholders dipped to $11.91 million CDN (6 cents per share) from $32.71 million CDN (16 cents); adjusted net income attributable to shareholders fell to $28.37 million CDN (14 cents), from $41.25 million CDN (20 cents).
Perhaps most troublesome is that Free Cash Flow was down by 143%, to -$10.15 million CDN, from $23.71 million CDN.
What’s the culprit? Gossling sums it up: lower advertising demand.