Corus Entertainment has increased its cash flow, announcing its updated its revolving credit to $75 million.
The updated credit facility, which takes the company into March 2027, also removes certain limitations on how Corus can use its excess cash, increasing its maximum Total Debt to Cash Flow Ratio to 9.5:1.00 through Dec. 31 of this year.
“This is an important and significant step in progressing our capital and debt plan, accomplished with the cooperation of lenders and constructive support of key debt investors,” said John Gossling, Co-Chief Executive Officer and Chief Financial Officer, in a company announcement. “We are better positioned to create sustainability in our business, and we expect our efforts to right-size will be ongoing as we anticipate ongoing shifts and factors affecting our industry in the near term. That said, today’s announcement clearly reinforces our commitment and ability to provide Canadians with the shows, news and audio content they love and expect from Corus.”
Corus reported in January that Q1 revenues were down 12%, with both radio and television revenue down amid a 16% decline in ad sales.
Net income attributable to shareholders was $11.9 million for the quarter with the company’s net debt to segment profit ratio at 4.48, up from 3.84 times in the previous quarter. Free cash flow was down to negative $10.1 million in Q1 2025, compared to $23.7 million in the same prior year period, mainly attributable to lower cash from operating activities. As of Nov. 30, the company had $87.6 million of cash and cash equivalents and $31.3 million available to be drawn under its revolving facility.
