Corus Entertainment says it’s been able to renegotiate its credit arrangement through the end of March, as the company reported Q4 and year-end earnings.
Led by RBC Capital Markets and TD Securities, Corus’ Restated Credit Facility has been amended to reduce its Revolving Facility limit to $150 million from $300 million, and increase its maximum total debt to cash flow ratio to 5.75 through the end of the year, and 7.25 from January through March. Corus paid down $2.7 million of debt in Q4 and $38.8 million for the year.
Co-CEO John Gossling told a Friday morning conference call that the company continues to capture efficiencies and reduce costs as it reported $1.3 billion in consolidated earnings for the year, down 16% year-over-year.
Revenue for the quarter totalled $269.4 million, down from $338.8 million year-over-year. TV revenues fell 21.1% in Q4 to $248 million, while radio revenue was down 13.4% to $21.3 million, compared with $24.6 million in the same period in 2023.
Gossling cited the impact of the U.S. writers and actors strikes on audience behaviour and advertising, the introduction of ad tiers on most streaming services, and over-supply of digital inventory as among the challenges the broadcaster is facing. He said the compnay achieved a 21% reduction in direct cost of sales, a 7% reduction in employee costs and a 15% reduction in general and admin costs for the year. Any projected cost savings in 2025 are expected to be offset by increased costs tied to the return of scripted programming.
The net loss attributable to shareholders was $25.7 million ($0.13 loss per share basic) for the quarter and $772.6 million ($3.87 loss per share basic) for the year. The company ended the year with $114.2 million in free cash flow and $39.1 million for the quarter.
“We have made significant progress on our plan to create a more sustainable future following challenging industry wide conditions and increased competitive intensity this past year,” said Co-CEO Troy Reeb, in a Corus statement. “Notably, we’ve generated considerable interest for the upcoming launch of our two all-new lifestyle brands, Flavour Network and Home Network, and the expansion of programming on Slice has yielded impressive results. Coupled with the strength of our fall schedule, these initiatives give us confidence we are on the right path.”
Reeb said that while advertising has not rebounded to where they’d like to see them, hours tuned to its ad-supported offerings are up 24% so far this fall, while its STACKTV streaming service continues to see modest subscriber growth.
“We have a plan for fighting back against the continued encroachment of U.S. tech giants in the Canadian advertising market. It is to focus on the value of our content, our communities and our people,” said Reeb.
He added that the company is encouraged by the CRTC’s confirmation this week that it will move ahead with a review of the structural relationship between broadcasters, distributors and streamers.
“This is long overdue,” said Reeb. “There is already ample evidence of the power imbalance between broadcasters like Corus and the foreign platforms that dominate streaming as well as certain distributors that have favoured their own services to the detriment of consumers.”
Corus shares were trading down slightly at .14 cents on the TSX, following Friday morning’s earnings call.
