Global pandemic + Global war + interest rates + inflationDespite many headwinds like a global pandemic that lasted three years and many businesses around the world are still dealing with its aftermath, the global war between Russia China and allies against Ukraine USA NATO and allies, interest rates that are making it harder for many businesses (from Tesla to Apple to Google to Disney to Netflix to Nordstrom to big banks like SVB Signature bank and Credit Swiss that failed) Corus managed to deliver 28 million dollars in free cash flow
last quarter while many other big corporations are losing billions every quarter. We are going through a recession, no company in the world has only one business cycle, things go up and down so think about the long term.
Since 2018 Corus paid over 1.1 BILLION dollars in dividends and debt repayments.. Corus acquired Shaw Media for $2.65 billion back in 2016. The debt is now down to $1.3 billion and with the recent share buybacks there are less shares floating around. When the doom and gloom cycle ends Corus will have three levers in its favour: less debt/less interest payments, less shares available as they continue their buybacks which will translate into more cash flow especially when the general sentiment improves. Within less than 5 years the company will be almost debt free and potentially with 50% less shares floating around. Just Imagine the possibilities and I am not even talking about their partnership with Pluto TV and the expansion of their content offerings and international distribution and merchandising. Corus is not about just radio and TV, they own the best software to develop kids content, multiple production and marketing companies as well as studios.
Free cash flow generated by Corus since 2011 (amounts are in millions and reflect the fiscal year):
2011: 134.861
2012: 155.147
2013: 154.711
2014: 175.276
2015: 201.213
2016: 188.165
2017: 292.660
2018:349.007
2019: 309.970
2020: 296.247
2021:251.947
2022: 239.600
The annual revenue (in millions) generated by Corus since 2010:
2010: 767.53
2011: 825.21
2012: 842.28
2013: 751.54
2014: 833.02
2015: 815.32
2016: 1171.3
2017: 1679.01
2018: 1647.44
2019: 1687.5
2020: 1511.24
2021: 1543.48
2022: 1598.586
So in 2022 revenues increased over fiscal 2021 not what the short sellers are peddling.
Short sellers prey on the emotionally weak and uninformed and I hope that some numbers will help put the facts at the forefront of the discussions instead of endless fear mongering from the short sellers. Now that you know the facts make an informed and rational decision not an emotional one.