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Revealed Jan 10, 2025 • 4 minute learn
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TORONTO — The chief executives of Corus Leisure Inc. say they’re inspired by responses to the launch of its two new way of life manufacturers, however acknowledge “fluctuations” in viewers ranges might nonetheless lie forward after it misplaced the content material rights for Meals Community and HGTV.
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Chatting with analysts on the tv and radio broadcaster’s first-quarter earnings name Friday, co-CEO Troy Reeb known as the Dec. 30 launch of Flavour Community and House Community “very encouraging” because of sturdy advertiser curiosity and viewers demand.
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“Whereas nonetheless early, clearly, the rankings for these channels have remained per previous to the rebrands,” he mentioned.
“Whereas definitely some shifts in viewers behaviour could but happen on account of new competing channels, we’re more than happy to have maintained all of our carriage for these networks.”
Final June, Rogers Communications Inc. introduced it had signed a multi-year cope with Warner Bros. Discovery to nab the rights to fashionable way of life and leisure manufacturers in Canada, reminiscent of Meals Community and HGTV, away from Corus.
Corus changed these manufacturers with Flavour and House, which it mentioned would air authentic reveals that have been meant for these networks. Each new channels are at the moment obtainable for two-month free previews throughout most main TV distributors.
With Rogers’ rights to Meals Community and HGTV taking impact on Jan. 1, co-CEO John Gossling acknowledged there’s “clearly extra competitors out there,” which suggests “advertisers have extra alternative.”
“There are two new competing channels which have some fashionable programming connected to them, so there’s going to be some fluctuations in viewers,” added Reeb.
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“We’re nonetheless feeling superb that we’ll proceed to be the dominant participant within the way of life house. Will that fragment promoting that has historically come to these channels? I feel it already has a bit, and we’re coping with that.”
The broadcaster reported Friday that its first-quarter revenue fell in contrast with a yr in the past as its income dropped 12 per cent. It mentioned it earned a revenue attributable to shareholders of $11.9 million or six cents per diluted share for the quarter ended Nov. 30.
The outcomes in contrast with a revenue of $32.7 million or 16 cents per diluted share in the identical quarter final yr.
Income for the quarter totalled $327.2 million, from $369.9 million a yr earlier.
Corus mentioned the general lower got here as tv income fell to $303.6 million in contrast with $342.4 million in the identical quarter final yr — a decline of round 11 per cent. Tv promoting income was down round 16 per cent whereas subscriber income fell two per cent.
Radio income totalled $23.5 million, down from $27.5 million.
On an adjusted foundation, Corus mentioned it earned 14 cents per share in its newest quarter in contrast with an adjusted revenue of 20 cents per share in the identical quarter final yr. Analysts on common had anticipated a revenue of 10 cents per share, in keeping with LSEG Information & Analytics.
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The corporate has been present process a “rightsizing” initiative to chop prices amid its stability sheet struggles. It has shed round 800 jobs, or round 25 per cent of the corporate’s full-time workforce, in contrast with the start of its 2023 fiscal yr.
In October, Corus agreed to a cope with its lenders meant to purchase it a while as it really works to slash prices and scale back its debt.
The settlement amends and restates its present syndicated, senior secured credit score amenities with its financial institution group, led by RBC Capital Markets and TD Securities. The restated credit score facility was modified to scale back the overall restrict on the revolving facility to $150 million from $300 million and improve the utmost complete debt to money circulate ratio required underneath the monetary covenants.
“Regardless of our improved audiences within the final two years, the promoting market has modified quickly,” Reeb instructed analysts.
“In response, we’re intensely targeted on balancing provide and calls for whereas rolling out new initiatives that present sturdy rationale and incentives for advertisers to purchase TV and streaming video from Corus.”
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He cited an “abundance of premium digital video stock” that has resulted from main streaming providers providing ad-supported tiers to prospects.
On Thursday, the CRTC mentioned it’s persevering with to look at how the Canadian broadcasting system can survive the shift away from conventional TV to worldwide streaming platforms, because the regulator introduced a public session on these market dynamics.
The session is a part of the fee’s work on implementing the On-line Streaming Act, which up to date broadcasting legal guidelines to seize on-line platforms reminiscent of Netflix, Amazon and Disney+.
The CRTC mentioned the Canadian broadcast trade is at a crossroads and “going through profound adjustments” posed by new applied sciences and adjustments in shopper habits and international competitors.
Reeb mentioned that whereas Corus is inspired by the CRTC’s announcement and continues to “forge crucial adjustments” internally, there stays an pressing must adapt laws and stage the trade’s taking part in discipline.
“The present aggressive surroundings unfairly benefits overseas digital giants in addition to some dominant home distributors to the detriment of Canadians,” he mentioned.
“The regulatory course of grinds very slowly in Ottawa. We’re completely satisfied that it continues to grind, and we might encourage it to rush.”
This report by The Canadian Press was first printed Jan. 10, 2025.
Corporations on this story: (TSX:CJR.B)
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