Corus Entertainment says it’s anticipating further declines in TV advertising revenue, as the company announced its third quarter financial results Thursday.
The quarter saw Corus slash employee costs by seven per cent as part of an overall reduction in expenses equalling $10 million in cost savings.
Consolidated revenue decreased 10% for the quarter and 11% for the year-to-date, with the company reporting a net loss to shareholders of $7.3 million ($0.04 loss per share basic) for the quarter and $51.3 million ($0.26 loss per share basic) year-to-date.
Revenue totalled $297.8 million, down from $331.8 million year-over-year. The company reported TV revenue of $274.5 million, down from $308.2 million in Q3 2024, while radio revenue was down slightly at $23.3 million, down from $23.6 million in the same period last year.
“Our third quarter results reflect progress on our plan to reduce the cost base of our business,” said CEO John Gossling, in an earnings release. “Television advertising revenue was consistent with our Q3 outlook, with impressive audience performance on Global and our largest specialty brands offset by a challenging industry landscape. Looking ahead, we have secured a stellar line-up of new shows and returning hit programming for the upcoming broadcast season, supporting our pursuit of targeted growth opportunities. Given persistent industry headwinds, we are making steady progress on our capital and debt plan while capturing significant savings and efficiencies through our ongoing right-sizing initiatives.”
Looking ahead to Q4, Corus said it’s anticipating a further year-over-year percentage decline in TV advertising revenue of 20%, citing geopolitical and economic uncertainty and the ongoing over-supply of premium digital video inventory from foreign competitors. It said it’s also expecting amortization of program rights to be relatively flat, compared to the previous year.
“The company will continue with its implementation of additional cost reduction initiatives and expects general and administrative expenses to decline in the range of 10 to 15% for the fourth quarter versus the prior year, excluding any potential benefit from the Independent Local News Fund,” the earnings release stated.
The CRTC recently ruled that Corus’ Global News stations are eligible to tap into the fund, however the company says it’s still waiting for details on how much money might be coming its way.
Corus shares were trading down slightly at .10 cents on the TSX on Thursday afternoon.
