One-time charges weigh on Corus Q3 results, revenue drops as advertising slows

One-time charges weigh on Corus Q3 results, revenue drops as advertising slows

TORONTO — Television and radio broadcaster Corus Entertainment Inc. lost $752.3 million in its latest quarter as it took a one-time impairment charge related its to broadcast licenses and goodwill.

The media company, which includes Global Television, says the loss amounted to $3.61 per diluted share for the quarter ended May 31 compared with a profit of $66.4 million or 31 cents per share in the same quarter a year earlier.

Corus chief executive Doug Murphy said Friday the quarter saw increased viewership and engagement across all of the company’s platforms.

However, the increased viewership didn’t translate into advertising dollars due to the COVID-19 pandemic, which forced non-essential businesses to close for much of the quarter.

“With the economy materially impacted by the COVID pandemic, these audiences were not optimally monetized as advertising demand is tightly correlated to sales and economic activity,” Murphy said.

Revenue totalled nearly $349 million in what was the company’s third quarter, down from $458.4 million a year earlier, as advertising revenue plunged amid the COVID-19 pandemic.

Advertising revenue totalled $207.9 million, down from $314.2 million in the same quarter last year.

However, the lost revenue was partially offset by about $17 million from the Canada Emergency Wage Subsidy, or CEWS, which reduced the company’s employment cost for the quarter.

“We’re extremely grateful to the government for quickly recognizing the need for emergency relief during this period of uncertainty and acting quickly to put this program in place,” chief financial officer John Gossling told analysts on a conference call.

The most recent quarter included $786.8 million in broadcast licence and goodwill impairment charges and $2.6 million in integration, restructuring and other costs.

The goodwill impairment charges were triggered by a significant decline in the company’s stock price since Aug. 31, 2019, when its 2019 financial year ended.

Excluding those charges, Corus says its adjusted profit for the quarter amounted to nearly $19 million or nine cents per share, down from $66.1 million or 31 cents per share a year ago.

The average analyst estimate had been for an adjusted profit of 15 cents per share and $377 million in revenue, according to financial markets data firm Refinitiv.

Corus shares fell to their lowest level in a month after the results were released. They closed down nearly 17 per cent mid-afternoon, after dropping 58 cents to $2.92 at the Toronto Stock Exchange.

This report by The Canadian Press was first published June 26, 2020.

Companies in this story: (TSX:CJR.B)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta children whose only symptom of COVID-19 is a runny nose or a sore throat will no longer require mandatory isolation, starting Monday.
477 new COVID-19 cases confirmed in Alberta on Thursday

Changes being made to the COVID-19 symptom list for school-age children

Chad Carlson (left) Jarita Carlson and their two children Milo Carlson (left) and Lennon Carlson are dressing up as Ghostbusters for Halloween. (Alannah Page/Lacombe Express)
Lacombe family passionate about Halloween and giving back to their community

COVID-19 has changed how the Carlson’s will celebrate Halloween this year

The Lacombe Legion volunteers laid poppies beside the graves of veterans on Oct. 28. (Alannah Page/Lacombe Express)
Lacombe Legion volunteers lay poppies for fallen veterans

Twenty volunteers showed up on Wednesday to pay their respects and help out

There were 410 COVID-19 cases recorded in Alberta Wednesday. (File photo by The Associated Press)
Alberta records 410 new COVID-19 cases Wednesday

Central zone dropped to 160 active cases

Shaun Isaac, owner of Woodchucker Firewood in Trochu, is awaiting a new shipment during a firewood shortage in the province. All of the wood he has left is being saved for long-time customers who need it to heat their homes. (Contributed photo).
Firewood shortage in central Alberta caused by rising demand, gaps in supply

‘I’ve said “No” to more people than ever’: firewood seller

Royal Alexandra Hospital front-line workers walk a picket line after walking off the job in a wildcat strike in Edmonton, on Monday, October 26, 2020. THE CANADIAN PRESS/Jason Franson
Alberta labour board orders health-care staff who walked off the job to go back to work

Finance Minister Travis Toews said in a news release that he was pleased with the labour board’s decision

Pilots Ilona Carter and Jim Gray of iRecover Treatment Centres, in front of his company’s aircraft, based at Ponoka’s airport. (Perry Wilson/Submitted)
95-year-old Ilona Carter flies again

Takes to the skies over Ponoka

Children’s backpacks and shoes are seen at a daycare in Langley, B.C., on Tuesday May 29, 2018. Alberta Children’s Services Minister Rebecca Schulz says the province plans to bring in a new way of licensing and monitoring child-care facilities. THE CANADIAN PRESS/Darryl Dyck
Alberta proposes legislation to change rules on child-care spaces

Record-keeping, traditionally done on paper, would be allowed digitally

Prime Minister Justin Trudeau shakes hands with US Vice-President Joe Biden on Parliament Hill in Ottawa on Friday, December 9, 2016. THE CANADIAN PRESS/ Patrick Doyle
A Biden presidency could mean good news for Canadian environment policy: observers

Experts and observers say even a U.S. outside the Paris agreement may ultimately end up in the same place

People take a photo together during the opening night of Christmas Lights Across Canada, in Ottawa, on Wednesday, Dec. 4, 2019. The likelihood that most Canadians will enjoy a holly jolly Christmas season of gatherings, caroling and travel is unlikely, say public health experts who encourage those who revel in holiday traditions to accept more sacrifices ahead. THE CANADIAN PRESS/Justin Tang
Ho, ho, no: Experts advise preparing for a scaled-back COVID holiday season

Many of the holiday season’s highlights have already been scrapped or are unlikely to take place

Sen. Kim Pate is shown in Toronto in an October 15, 2013, file photo. The parliamentary budget office says a proposed law that would give judges discretion on whether to apply a lesser sentence for murder could save the federal government $8.3 million per year. THE CANADIAN PRESS/Colin Perkel
Judicial discretion for mandatory minimum sentences for murder would save $8.3M: PBO

The result would be fewer people in long-term custody at federal correctional institutions, experts say

Husky Energy logo is shown at the company’s annual meeting in Calgary on May 5, 2017. THE CANADIAN PRESS/Jeff McIntosh
Husky pipeline spills 900,000 litres of produced water in northwestern Alberta

The energy regulator says environmental contractors are at the site

A raccoon paid a visit to a Toronto Tim Hortons on Oct. 22, 2020. (shecallsmedrew/Twitter)
Who are you calling a trash panda? Raccoon takes a shift at Toronto Tim Hortons

Tim Hortons said animal control was called as soon they saw the surprise visitor

Most Read