Corus Entertainment Sees Revenues Drop in Q1

Corus Entertainment’s consolidated revenues decreased 18 percent to C$267.6 million in Q1 of the fiscal year.

Television revenues dropped 19 percent to C$245 million. Within that, advertising dropped 23 percent to C$135 million and subscriptions dropped 15 percent to C$99 million. The distribution, production and other segment slipped 2 percent to C$11 million.

“Our first quarter results were in line with our expectations, with persistent market headwinds and industry conditions continuing to impact both advertising and subscriber revenue,” said John Gossling, CEO. “We are pleased with our significant progress in respect of the proposed recapitalization transaction first announced in November. When completed, the proposed transaction is expected to deliver substantial balance sheet improvements, including reductions of indebtedness and other liabilities of more than C$500 million and annual cash interest savings of up to C$40 million, as well as extended maturity dates for credit facilities and notes. Our management information circular with details about the proposed transaction has been mailed to eligible securityholders, and the board of directors encourages voting in favor of the resolutions to be passed at the related meetings, which will be held on January 30.”