Taken 5 years for tv ad revenue to turn positiveLast tv ad revenue increase was 2014. Has taken 5 years for tv ad revenue to finally turn positive. This is not a one hit wonder. After reading Accenture report the new digital 50 advertisers have for the first time started to spend on TV. Google Amazon and others have the deep pockets to keep this trend going. Looks like those who called for death of network tv have been proven wrong. There is a clear sense on call of underpromise and overdeliver. Based on comparable quarters they will likely report double digit revenue growth for both subsequent quarters. CEO and CFO clearly trying to temper expectations for future quarters. I think this is the most significant event coming out of this year quarter. A trend that started few quarter ago.
Other catalyst for higher share share price is when we start to see monitization of all the content they have been doing and selling internationally. This will start to appear on top line.
Key metric not PE. That is depressed as amortization has increased due to higher write offs but this is a non cash item. Key metric is cash flow and given the positive environment now this will quickly go to $2 a share justifying a much higher share price. Radio at some point will turn also but this is only 7 percent of business so not as critical as tv advertising which is the number 1 key performance indicator. Corus remains stock with highest short term upside on TSX and in time more investors will discover this. There podcasts iniative is nice complement to traditional radio.