Corus Posts Q3 Loss on Impairment
TORONTO: A C$175-million impairment charge dragged Corus Entertainment Inc. (TSX: CJR.B) losses for Q309 well below analyst expectations.
The Canadian radio and TV broadcaster reported losses of C$145 million or C$1.81 per share for the quarter, which ended May 31. In the same quarter of ’08, Corus posted profits of C$37.7 million or 45 cents per share.
Corus attributed much of the loss to an impairment charge on goodwill and broadcast licenses. With those charges and other one-time items taken out of the picture, Corus reported adjusted earnings per share of 36 cents.
Analysts predicted the company would book adjusted earnings of 43 cents per share.
On the television side, revenues were down only a single percentage point, while segment profit fell by 5 percent.
The results came a day after Corus announced the C$40 million purchase of Drive-In Classics and SexTV from CTVglobemedia (TSX: BCE). The purchase must be approved by the Canadian Radio-Television and Telecommunications Commission.
Quarterly revenue was down 6 percent at C$195.4 million compared to the C$207.8 million taken in the prior year. Revenue declines were most precipitous for the company’s radio division, which saw a 15 percent drop in total revenue and a 35 percent drop in segment profit.
Corus operates three broadcast television stations in Ontario and more than a dozen cable and satellite channels, as well as 52 radio stations across Canada