- Corus Entertainment (TSX:CJR.B) reported a significant Q4 2024 loss, marking a stark contrast to the profit it posted a year ago
- Revenue for the quarter fell to $269.4 million, down 21 per cent from C$338.8 million a year prior, and significantly below analysts’ expectations
- In response to its financial challenges, Corus announced it has amended its syndicated, senior secured credit facilities, which reduces the total limit on the revolving facility from C$300 million to C$150 million
- Corus Entertainment stock opened at $0.155
Corus Entertainment (TSX:CJR.B) reported a significant Q4 2024 loss, marking a stark contrast to the profit it posted a year ago.
For the quarter ending Aug. 31, the broadcaster recorded a net loss attributable to shareholders of C$25.7 million, or 13 cents per diluted share. This is a notable decline from the C$50.4 million profit, or 25 cents per diluted share, reported in the same quarter last year.
Revenue for the quarter fell to $269.4 million, down 21 per cent from C$338.8 million a year prior, and significantly below analysts’ expectations. The company attributed this shortfall primarily to a continuing slowdown in the advertising sector, a trend it anticipates will persist into early 2025.
The company’s stock has seen a dramatic decline, trading at just 16 cents on Thursday, a steep drop from C$1.02 in January and well below the C$6 mark it reached in 2021.
On an adjusted basis, Corus reported a loss of 2 cents per share, an improvement from an adjusted loss of 4 cents per share in the previous year.
“Our commitment to right-sizing our business is evident in our fourth quarter and year-end results,” said John Gossling, Corus’ co-chief executive officer and chief financial officer.
Gossling tried to clarify in a news release that the team has delivered increased free cash flow for the year, benefitting from meaningful cost reduction efforts and deliberate focus on assets with the highest potential to generate returns.
“We also announced today that we have entered into an amended and restated credit facility, which is an important step in our more comprehensive plan to address our balance sheet and facilitates the execution of our business strategy,” he said.
In response to its financial challenges, Corus’ revised agreement with its banking group reduces the total limit on the revolving facility from C$300 million to C$150 million and adjusts the maximum total debt to cash flow ratio required under its financial covenants.
Corus is a media and content company with a portfolio composed of 32 specialty television services, 38 radio stations, 15 conventional television stations, digital and streaming platforms, and social digital agency and media services. Its key brands include Global Television, W Network, The History Channel, Showcase, Adult Swim, National Geographic and Global News, along with streaming platforms STACKTV, TELETOON+, the Global TV App and Curiouscast.
Corus Entertainment stock (TSX:CJR.B) fell more than 6 per cent in early trading, opening at $0.155. While up 38.10 per cent over the past three months, its share value has lost 79.58 per cent since the year began.
Join the discussion: Find out what everybody’s saying about this media stock on the Corus Entertainment Inc. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of the Corus Quay broadcast and content facility in Toronto: Corus Entertainment)