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Oct 21, 2022, 06:00 ET
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TORONTO, Oct. 21, 2022 /CNW/ – Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year end financial results today.
“In Q4 we experienced meaningfully lower financial results given the impacts of an uncertain economic environment on advertising demand,” said Doug Murphy, President and CEO, Corus Entertainment. “Despite these cross-currents in the advertising market, our portfolio of businesses is delivering impressive subscriber revenue growth and increased international content sales. In addition, the ongoing expansion of our premium digital video business, with STACKTV, TELETOON+, the Global TV App and the upcoming launch of Pluto TV, underscores our progress in maximizing multi-platform television opportunities. We are taking appropriate actions to tightly manage our expenses while maintaining a disciplined focus on capital allocation, shareholder yield and the ongoing execution of our strategic plan and priorities.
Three months ended
Year ended
August 31,
%
August 31,
%
(in thousands of Canadian dollars except per share amounts)
2022
2021
Change
2022
2021
Change
Revenue
Television
314,170
335,844
(6 %)
1,492,708
1,446,287
3 %
Radio
25,424
25,411
0 %
105,878
97,196
9 %
339,594
361,255
(6 %)
1,598,586
1,543,483
4 %
Segment profit (loss) (1)
Television (2)(3)
59,018
110,026
(46 %)
458,145
549,159
(17 %)
Radio (2)(3)
1,729
4,316
(60 %)
13,267
14,151
(6 %)
Corporate (2)
(4,558)
(11,642)
61 %
(27,769)
(38,692)
28 %
56,189
102,700
(45 %)
443,643
524,618
(15 %)
Segment profit margin (1)
Television
19 %
33 %
31 %
38 %
Radio
7 %
17 %
13 %
15 %
Consolidated
17 %
28 %
28 %
34 %
Net income (loss) attributable to shareholders
(367,065)
19,920
n/m
(245,058)
172,550
n/m
Adjusted net income (loss) attributable to shareholders (1)
(17,116)
21,669
n/m
106,938
182,218
n/m
Basic earnings (loss) per share
($1.82)
$0.10
($1.19)
$0.83
Adjusted basic earnings (loss) per share (1)
($0.08)
$0.10
$0.52
$0.88
Diluted earnings (loss) per share
($1.82)
$0.10
($1.19)
$0.83
Free cash flow (1)
44,713
35,181
27 %
239,585
251,947
(5 %)
(1)
In addition to disclosing results in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company’s performance and to provide a better understanding of how management views the Company’s performance. These non-IFRS or non-GAAP measures include: segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, optimized advertising revenue and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators and Non-GAAP Financial Measures section of the Company’s Fourth Quarter 2022 Report to Shareholders.
(2)
No claims for the Canada Emergency Wage Subsidy (“CEWS”) were made in fiscal 2022. In the prior year, segment profit for the fourth quarter included CEWS benefits of $1.0 million (Television: $1.1 million; Radio: $0.2 million; Corporate reduction of $0.3 million) and $13.5 million for the year (Television: $11.1 million; Radio: $1.9 million; Corporate: $0.5 million).
(3)
In the first three quarters of the prior year, segment profit included relief on regulatory fees. As a result, CRTC part I and II fees for the year ended August 31, 2022 have increased by $9.6 million (Television: $8.8 million; Radio: $0.8 million) compared to the prior year.
Three months ended
Year ended
August 31,
%
August 31,
%
(in thousands of Canadian dollars)
2022
2021
Change
2022
2021
Change
Revenue
Television
314,170
335,844
(6 %)
1,492,708
1,446,287
3 %
Advertising
151,873
176,942
(14 %)
859,598
842,202
2 %
Subscriber
127,715
125,735
2 %
518,483
498,049
4 %
Distribution, production and other
34,582
33,167
4 %
114,627
106,036
8 %
Radio
25,424
25,411
0 %
105,878
97,196
9 %
Total Revenue
339,594
361,255
(6 %)
1,598,586
1,543,483
4 %
Optimized advertising revenue (1)
50 %
34 %
26 %
43 %
31 %
41 %
New platform revenue (1)
12 %
10 %
10 %
10 %
8 %
32 %
(1)
Optimized advertising revenue and new platform revenue do not have standardized meanings prescribed by IFRS. For definitions and explanations, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Fourth Quarter 2022 Report to Shareholders.
Corus advanced its Strategic Priorities on multiple fronts. The Company expanded its premium digital video offerings for subscribers and advertisers; set up its successful Fall programming lineup for Global TV and Corus’ portfolio of Specialty Networks, and expanded the scope of its content business. The Company advanced its capital allocation priorities through investments in the business to support future growth opportunities, maintaining dividends, and making bank debt repayments and share repurchases.
(1)
Free cash flow, net debt to segment profit and segment profit do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see the discussion under the Key Performance Indicators and Non-GAAP Measures section of the Fourth Quarter 2022 Report to Shareholders and/or Management’s Discussion and Analysis in the Company’s Annual Report for the year ended August 31, 2021.
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three months and year ended August 31, 2022 and Management’s Discussion and Analysis are available on the Company’s website at www.corusent.com in the Investor Relations section and under the Company’s SEDAR profile at www.sedar.com.
A conference call with Corus senior management is scheduled for October 21, 2022 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. The dial-in number for the conference call for local and international callers is 1.647.794.4605 and for North America is 1.888.394.8218. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Many provinces and territories have lifted many of the health restrictions related to COVID 19, which has led to an increase in hybrid work arrangements, which in turn has seen a reduced return to on-site work across various sectors. However, disruptions caused by prior imposition of public health restrictions, public sentiment about the pandemic and continuing COVID-19 infection rates, including labour shortages, employee absenteeism at the Company or its clients and suppliers, changes in consumer demand, and supply chain shortages or disruptions, particularly in the automotive, retail, tourism, and entertainment sectors, can negatively impact the Company’s operations and financial performance, including advertising demand and revenue. There can be no certainty that current vaccination and public health measures can mitigate negative impacts caused by the COVID-19 pandemic on the Company’s business in the short to medium term.
As discussed further in the 2021 MD&A under the heading “Economic Conditions”, the Company’s operating performance is affected by general Canadian and worldwide economic conditions. Changes or volatility in domestic or international economic conditions, economic uncertainty or geopolitical conflict and tensions, may affect discretionary consumer and business spending, resulting in increased or decreased demand for Corus’ product offerings. In addition, elevated consumer price index inflation driven by sharp increases in energy and food prices as well as supply disruptions and strong demand for goods can also affect the Company’s business operations and financial performance. All of the foregoing factors may adversely affect the Company through disruption to supply chains, increased costs of labour or disruption to availability of labour, related reduced advertising demand or spending, or lower demand for the Company’s products and services, all of which may lead to decreased revenue or profitability. Finally, in all cases, the Company’s business and financial condition are subject to audience and consumer acceptance of Corus’ brands, programming and talent.
This press release includes the non-GAAP or non-IFRS financial measures of segment profit, segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, as well as supplementary financial measures not presented in the financial statements such as optimized advertising revenue, and new platform revenue. Non-GAAP or non-IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. The non GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company’s non-GAAP measures is included in the Company’s most recent Report to Shareholders for the three months and year ended August 31, 2022, which is available on Corus’ website at www.corusent.com as well as on SEDAR at www.sedar.com.
This press release contains forward-looking information and should be read subject to the following cautionary language:
To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking information”). This forward-looking information relates to, among other things, the Company’s objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company’s strategic plan, advertising and expectations of advertising trends for fiscal 2023, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company’s dividend policy and the payment of future dividends; the Company’s leverage target; the Company’s proposed share purchases, including the number of Class B non-voting shares to be repurchased under its normal course issuer bid, if any, and timing thereof; the Company’s ability to manage retention and reputation risks related to its on-air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information.
Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company’s ability to source, produce or sell desirable content and the Company’s capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information.
Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company’s ability to attract, retain and manage fluctuations in advertising revenue; the Company’s ability to maintain relationships with key suppliers and clients and on anticipated financial terms and conditions; audience acceptance of the Company’s television programs and cable networks; the Company’s ability to manage retention and reputation risks related to its on-air talent; the Company’s ability to recoup production costs; the availability of tax credits; the availability of expected news, production and related credits, programs and funding; the existence of co-production treaties; the Company’s ability to compete in any of the industries in which it does business including with competitors which may not be regulated in the same way or to the same degree; the business and strategic opportunities (or lack thereof) that may be presented to and pursued by the Company; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations including statements, decisions or positions by applicable regulators including, without limitation, the Canadian Radio-television and Telecommunications Commission (“CRTC”), Canadian Heritage and Innovation, Science and Economic Development Canada (“ISED”); changes to licensing status or conditions; unanticipated or unmitigatable programming costs; the Company’s ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage it’s growth; the Company’s ability to successfully defend itself against litigation matters and complaints; failure to meet covenants under the Company’s senior credit facility, senior unsecured notes or other instruments or facilities; epidemics, pandemics or other public health and safety crises in Canada and globally, including COVID-19; physical and operational changes to the Company’s key facilities and infrastructure; cybersecurity threats or incidents to the Company or its key suppliers and vendors; and changes in accounting standards.
Additional information about these factors and about the material assumptions underlying any forward looking information may be found under the heading “Risks and Uncertainties” in the Company’s Management’s Discussion and Analysis for the year ended August 31, 2021 and under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended August 31, 2021. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on the Company’s forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document and may be updated or amended from time to time. Except as otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the Company’s portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services. Corus is an internationally-renowned content creator and distributor through Nelvana, a world class animation studio expert in all formats and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The Company also owns innovative full-service social digital agency so.da, lifestyle entertainment company Kin Canada, leading 2D animation software supplier Toon Boom and children’s book publishing house, Kids Can Press. Corus’ roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, Magnolia Network Canada, The HISTORY® Channel, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX, along with broadly distributed Canadian streaming platforms STACKTV, TELETOON+, the Global TV App and Curiouscast.
For more information visit www.corusent.com.
(unaudited – in thousands of Canadian dollars)
As at August 31,
As at August 31,
2022
2021
ASSETS
Current
Cash and cash equivalents
54,912
43,685
Accounts receivable
311,015
325,587
Income taxes recoverable
17,180
5,597
Prepaid expenses and other assets
21,423
24,106
Total current assets
404,530
398,975
Tax credits receivable
32,744
24,501
Investments and other assets
63,931
98,667
Property, plant and equipment
294,026
316,226
Program rights
660,722
576,076
Film investments
59,122
39,732
Intangibles
1,620,796
1,687,432
Goodwill
316,308
664,958
Deferred income tax assets
50,301
50,050
3,502,480
3,856,617
LIABILITIES AND EQUITY
Current
Accounts payable and accrued liabilities
526,899
509,817
Current portion of long-term debt
15,574
35,328
Provisions
8,540
7,202
Total current liabilities
551,013
552,347
Long-term debt
1,246,076
1,313,965
Other long-term liabilities
376,570
331,482
Provisions
9,830
9,497
Deferred income tax liabilities
415,010
428,963
Total liabilities
2,598,499
2,636,254
EQUITY
Share capital
781,918
816,189
Contributed surplus
1,511,481
1,512,431
Accumulated deficit
(1,574,358)
(1,282,897)
Accumulated other comprehensive income
33,000
21,811
Total equity attributable to shareholders
752,041
1,067,534
Equity attributable to non-controlling interest
151,940
152,829
Total equity
903,981
1,220,363
3,502,480
3,856,617
Three months ended
Year ended
August 31,
August 31,
(unaudited – in thousands of Canadian dollars except per share amounts)
2022
2021
2022
2021
Revenue
339,594
361,255
1,598,586
1,543,483
Direct cost of sales, general and administrative expenses
283,405
258,555
1,154,943
1,018,865
Depreciation and amortization
39,857
37,850
156,937
152,255
Interest expense
27,313
26,665
107,108
104,078
Goodwill impairment
350,000
—
350,000
—
Debt refinancing
—
—
(3,428)
1,885
Restructuring and other costs
1,839
2,379
8,062
11,264
Other expense (income), net
9,255
3,415
16,847
(8,197)
Income (loss) before income taxes
(372,075)
32,391
(191,883)
263,333
Income tax expense (recovery)
(5,968)
8,538
40,355
68,760
Net income (loss) for the period
(366,107)
23,853
(232,238)
194,573
Other comprehensive income (loss), net of income taxes:
Items that may be reclassified subsequently to income (loss):
Unrealized change in fair value of cash flow hedges
(116)
2,680
4,891
12,320
Unrealized foreign currency translation adjustment
1,256
1,190
1,296
(517)
1,140
3,870
6,187
11,803
Items that will not be reclassified to income (loss):
Unrealized change in fair value of financial assets
(17)
(4,202)
5,002
12,266
Actuarial gain (loss) on post-retirement benefit plans
(2,461)
5,459
4,466
19,359
(2,478)
1,257
9,468
31,625
Other comprehensive income (loss), net of income taxes
(1,338)
5,127
15,655
43,428
Comprehensive income (loss) for the period
(367,445)
28,980
(216,583)
238,001
Net income (loss) attributable to:
Shareholders
(367,065)
19,920
(245,058)
172,550
Non-controlling interest
958
3,933
12,820
22,023
(366,107)
23,853
(232,238)
194,573
Comprehensive income (loss) attributable to:
Shareholders
(368,403)
25,047
(229,403)
215,978
Non-controlling interest
958
3,933
12,820
22,023
(367,445)
28,980
(216,583)
238,001
Earnings (loss) per share attributable to shareholders:
Basic
($1.82)
$0.10
($1.19)
$0.83
Diluted
($1.82)
$0.10
($1.19)
$0.83
(unaudited – in thousands of Canadian dollars)
Share
capital
Contributed
surplus
Accumulated
deficit
Accumulated
other
comprehensive
income
Total equity
attributable to
shareholders
Non-
controlling
interest
Total equity
As at August 31, 2021
816,189
1,512,431
(1,282,897)
21,811
1,067,534
152,829
1,220,363
Comprehensive income (loss)
—
—
(245,058)
15,655
(229,403)
12,820
(216,583)
Dividends declared
—
—
(49,561)
—
(49,561)
(19,772)
(69,333)
Business acquisition
—
—
—
—
—
864
864
Change in fair value of put option
liability arising from business
acquisition
—
—
(1,308)
—
(1,308)
(520)
(1,828)
Shares repurchased under normal
course issuer bid (“NCIB”)
(32,047)
(2,719)
—
—
(34,766)
—
(34,766)
Share repurchase commitment
under NCIB
(2,224)
504
—
—
(1,720)
—
(1,720)
Actuarial gain on post-retirement benefit
plans
—
—
4,466
(4,466)
—
—
—
Share-based compensation expense
—
1,265
—
—
1,265
—
1,265
Equity funding by a non-controlling
interest
—
—
—
—
—
5,719
5,719
As at August 31, 2022
781,918
1,511,481
(1,574,358)
33,000
752,041
151,940
903,981
(unaudited – in thousands of Canadian dollars)
Share
capital
Contributed
surplus
Accumulated
deficit
Accumulated
other
comprehensive
income (deficit)
Total equity
attributable to
shareholders
Non-
controlling
interest
Total equity
As at August 31, 2020
816,189
1,511,325
(1,425,432)
(2,258)
899,824
148,595
1,048,419
Comprehensive income
—
—
172,550
43,428
215,978
22,023
238,001
Dividends declared
—
—
(49,991)
—
(49,991)
(17,676)
(67,667)
Actuarial gain on post-retirement benefit
plans
—
—
19,359
(19,359)
—
—
—
Share-based compensation expense
—
1,106
—
—
1,106
—
1,106
Return of capital to non-controlling
interest
—
—
—
—
—
(1,622)
(1,622)
Equity funding by a non-controlling
interest
—
—
—
—
—
2,126
2,126
Reallocation of equity interest
—
—
617
—
617
(617)
—
As at August 31, 2021
816,189
1,512,431
(1,282,897)
21,811
1,067,534
152,829
1,220,363
Three months ended
Year ended
August 31,
August 31,
(unaudited – in thousands of Canadian dollars)
2022
2021
2022
2021
OPERATING ACTIVITIES
Net income (loss) for the period
(366,107)
23,853
(232,238)
194,573
Adjustments to reconcile net income (loss) to cash flow from operations:
Amortization of program rights
133,597
118,437
559,810
493,598
Amortization of film investments
4,794
3,027
23,929
12,927
Depreciation and amortization
39,857
37,850
156,937
152,255
Deferred income tax expense (recovery)
(3,095)
621
(10,437)
(22,035)
Goodwill impairment
350,000
—
350,000
—
Share-based compensation expense
330
276
1,265
1,106
Imputed interest
11,234
9,535
46,201
42,288
Debt refinancing
—
—
(3,428)
1,885
Payment of program rights
(160,640)
(161,793)
(564,214)
(533,837)
Net spend on film investments
(1,771)
3,629
(41,168)
(17,690)
Other
1,802
(1,884)
7,628
(316)
Cash flow from operations
10,001
33,551
294,285
324,754
Net change in non-cash working capital balances related to operations
45,834
16,540
(77,450)
(50,261)
Cash provided by operating activities
55,835
50,091
216,835
274,493
INVESTING ACTIVITIES
Additions to property, plant and equipment
(8,944)
(13,370)
(17,810)
(19,554)
Proceeds from sale of property
174
(3)
299
316
Business combination, net of cash acquired
—
—
3,606
—
Venture fund distribution
—
—
43,478
—
Net cash flows for intangibles, investments and other assets
(2,672)
(7,776)
(4,401)
(10,288)
Cash provided by (used in) investing activities
(11,442)
(21,149)
25,172
(29,526)
FINANCING ACTIVITIES
Decrease in bank loans
(7,216)
(48,471)
(354,846)
(650,634)
Financing fees
—
—
(5,892)
(12,119)
Issuance of senior unsecured notes
—
—
250,000
500,000
Share repurchase under NCIB
(11,610)
—
(34,691)
—
Return of capital to non-controlling interest
—
—
—
(1,622)
Equity funding by a non-controlling interest
—
1,976
3,742
4,102
Payment of lease liabilities
(4,422)
(4,109)
(17,031)
(16,245)
Dividends paid
(12,150)
(12,498)
(49,561)
(49,991)
Dividends paid to non-controlling interest
(5,627)
(6,133)
(19,772)
(17,676)
Other
(149)
(140)
(2,729)
(2,997)
Cash used in financing activities
(41,174)
(69,375)
(230,780)
(247,182)
Net change in cash and cash equivalents during the period
3,219
(40,433)
11,227
(2,215)
Cash and cash equivalents, beginning of the period
51,693
84,118
43,685
45,900
Cash and cash equivalents, end of the period
54,912
43,685
54,912
43,685
(unaudited – in thousands of Canadian dollars)
Three months ended August 31, 2022
Television
Radio
Corporate
Consolidated
Revenue
314,170
25,424
—
339,594
Direct cost of sales, general and administrative expenses
255,152
23,695
4,558
283,405
Segment profit (loss)(1)
59,018
1,729
(4,558)
56,189
Depreciation and amortization
39,857
Interest expense
27,313
Goodwill impairment
350,000
Restructuring and other costs
1,839
Other expense, net
9,255
Loss before income taxes
(372,075)
Three months ended August 31, 2021
Television
Radio
Corporate
Consolidated
Revenue
335,844
25,411
—
361,255
Direct cost of sales, general and administrative expenses
225,818
21,095
11,642
258,555
Segment profit (loss)(1)
110,026
4,316
(11,642)
102,700
Depreciation and amortization
37,850
Interest expense
26,665
Restructuring and other costs
2,379
Other expense, net
3,415
Income before income taxes
32,391
Year ended August 31, 2022
Television
Radio
Corporate
Consolidated
Revenue
1,492,708
105,878
—
1,598,586
Direct cost of sales, general and administrative expenses
1,034,563
92,611
27,769
1,154,943
Segment profit (loss)(1)
458,145
13,267
(27,769)
443,643
Depreciation and amortization
156,937
Interest expense
107,108
Goodwill impairment
350,000
Debt refinancing
(3,428)
Restructuring and other costs
8,062
Other expense, net
16,847
Loss before income taxes
(191,883)
Year ended August 31, 2021
Television
Radio
Corporate
Consolidated
Revenue
1,446,287
97,196
—
1,543,483
Direct cost of sales, general and administrative expenses
897,128
83,045
38,692
1,018,865
Segment profit (loss)(1)
549,159
14,151
(38,692)
524,618
Depreciation and amortization
152,255
Interest expense
104,078
Debt refinancing
1,885
Restructuring and other costs
11,264
Other income, net
(8,197)
Income before income taxes
263,333
(1) Segment profit (loss) does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance
Indicators section of the Fourth Quarter 2022 Report to Shareholders.
Three months ended
Year ended
August 31,
August 31,
(unaudited – in thousands of Canadian dollars)
2022
2021
2022
2021
Advertising
175,964
200,991
960,192
934,151
Subscriber
127,715
125,735
518,483
498,049
Distribution, production and other
35,915
34,529
119,911
111,283
339,594
361,255
1,598,586
1,543,483
(unaudited – in thousands of Canadian dollars, except percentages)
Three months ended
Year ended
August 31,
%
August 31,
%
Optimized advertising revenue
2022
2021
Change
2022
2021
Change
Optimized advertising revenue (numerator)
76,660
60,995
26 %
371,540
263,734
41 %
Television advertising revenue (denominator)
151,873
176,942
(14 %)
859,598
842,202
2 %
Optimized advertising revenue percentage
50 %
34 %
43 %
31 %
Three months ended
Year ended
(unaudited – in thousands of Canadian dollars, except percentages)
August 31,
%
August 31,
%
New platform revenue
2022
2021
Change
2022
2021
Change
New platform revenue (numerator)
33,061
29,965
10 %
142,284
107,807
32 %
Television advertising revenue
151,873
176,942
(14 %)
859,598
842,202
2 %
Television subscriber revenue
127,715
125,735
2 %
518,483
498,049
4 %
Total Television advertising and subscriber revenue (denominator)
279,588
302,677
(8 %)
1,378,081
1,340,251
3 %
New platform revenue percentage
12 %
10 %
10 %
8 %
Three months ended
Year ended
(unaudited – in thousands of Canadian dollars, except per share amounts)
August 31,
August 31,
Adjusted Net Income Attributable to Shareholders
2022
2021
2022
2021
Net income (loss) attributable to shareholders
(367,065)
19,920
(245,058)
172,550
Adjustments, net of income tax:
Goodwill impairment
348,597
—
348,597
—
Debt refinancing
—
—
(2,526)
1,389
Restructuring and other costs
1,352
1,749
5,925
8,279
Adjusted net income (loss) attributable to shareholders
(17,116)
21,669
106,938
182,218
Basic earnings (loss) per share
($1.82)
$0.10
($1.19)
$0.83
Adjustments, net of income tax:
Goodwill impairment
$1.73
—
$1.69
—
Debt refinancing
—
—
($0.01)
$0.01
Restructuring and other costs
$0.01
—
$0.03
$0.04
Adjusted basic earnings (loss) per share
($0.08)
$0.10
$0.52
$0.88
(unaudited – in thousands of Canadian dollars)
Three months ended
August 31,
Year ended
August 31,
Free Cash Flow
2022
2021
2022
2021
Cash provided by (used in):
Operating activities
55,835
50,091
216,835
274,493
Investing activities
(11,442)
(21,149)
25,172
(29,526)
Add: cash used in (provided by) business acquisitions and strategic investments (1)
44,393
28,942
242,007
244,967
320
6,239
(2,422)
6,980
Free cash flow
44,713
35,181
239,585
251,947
(1)
Strategic investments are comprised of investments in venture funds and associated companies.
(unaudited – in thousands of Canadian dollars)
August 31,
Year ended
August 31,
Net Debt and Net Debt to Segment Profit
2022
2021
Total debt, net of unamortized financing fees and prepayment options
1,261,650
1,349,293
Lease liabilities
134,369
143,546
Cash and cash equivalents
(54,912)
(43,685)
Net debt (numerator)
1,341,107
1,449,154
Segment profit (denominator) (1)
443,643
524,618
Net debt to segment profit
3.02
2.76
(1)
Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the “Quarterly Consolidated Financial Information” section of the Fourth Quarter 2022 Report to Shareholders.
SOURCE Corus Entertainment Inc.
For further information: Investor inquiries: Heidi Kucher, Director, Investor Relations, Corus Entertainment Inc., [email protected]; Media inquiries: Melissa Eckersley, Director, Corporate Communications, Corus Entertainment Inc., [email protected]
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company’s portfolio of multimedia offerings encompass…
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