TORONTO — Its TSX-traded stock hasn’t been over $1 CDN since the end of September 2023. Its fiscal year ended with a dour portrait of a period in which the WGA and SAG-AFTRA strikes and advertising softness impacted profits.
How did Corus Entertainment fare in its fiscal first quarter of 2024? Not as good as it did one year earlier, putting added pressure on the owner of radio and MVPD-distributed television offerings.
Corus’ television imprint stretches from the Global broadcast TV network and a host of cable channels including Canadian versions of HGTV, Disney Channel and Food Network to French-language fare via Séries Plus.
In fiscal Q1 ’24, Television revenue declined to $342.43 million CDN from $401.53 million CDN as the segment profit fell to $121.76 million CDN from $131.76 million CDN.
With radio stations across 8 Canadian provinces including Toronto’s Alternative CFNY “102.1 The Edge” and Rock CILQ “Q107” and Calgary’s CKRY “Country 105,” it was also a downbeat fiscal Q1 ’24 for the AM/FM side of Corus’s business. Radio revenue declined to $27.47 million CDN from $29.66 million CDN as segment profit tumbled by 25%, to $4.55 million CDN compared to $6.02 million CDN in fiscal Q1 2023.
For Doug Murphy, Corus’ President/CEO, the television advertising revenue results were no surprise and in-line with the company’s first quarter outlook. “The impacts of industry-wide advertising market weakness have been partially offset by reductions in programming and operating costs,” he said. “While visibility as to the timing of the advertising recovery remains limited, our supply of premium scripted content will return to normal in the back half of this fiscal year.”
Murphy pointed to “a standout schedule of premium scripted content” set to air starting in February on Global. “The long awaited normalization of our programming supply is foundational to our Video First strategy that aggregates premium video on multiple digital streaming platforms,” he said. “Our disciplined focus on reducing expenses across the business is evident in the first quarter results, delivering a lower cost base and improving operational efficiencies as our focus on debt repayment remains a priority.”
Murphy did not comment on the radio division performance as the CRTC scrutinizes its decision to simulcast CHQR-AM 770 in Calgary on CFGQ-FM, discontinuing Classic Rock “Q107” in Calgary.
What lies ahead for Corus in fiscal 2024? While production on TV programs is underway, the company believes “there continues to be a lagging effect on the delivery of new episodes of scripted programming on television.”
“New episodes of scripted series are expected to start delivering late in the second quarter of fiscal 2024,” Corus said. “As a result of the continuing macroeconomic uncertainty combined with the delayed delivery of new scripted programming, the company expects its Television advertising revenue in the second quarter of fiscal 2024 will decline by a high-single to low- double digit percentage compared to the prior year’s second quarter.”
Corus added that amortization of TV program rights is expected to decline by a similar range and the company will continue with its implementation of additional cost management initiatives. “While the company continues to expect improvement in the macro-environment and the normalization of program supply over the short term, visibility remains limited at this time,” it said.
— With reporting by RBR+TVBR in North York, Ont.