Corus Entertainment slashes dividend, reports $935.9M third-quarter loss

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TORONTO — Corus Entertainment Inc. slashed its dividend as part of a plan to reduce its debt as it reported a loss of $935.9 million in its latest quarter as it took a $1.01-billion non-cash impairment charge related to broadcast licenses and goodwill.

The company said Wednesday it will pay a quarterly dividend of six cents per class B share starting in September compared with its current dividend which is a monthly payment to shareholders of 9.5 cents per class B share.

“We have positioned Corus for the future with our revised capital allocation policy,” Corus chief executive Doug Murphy said in a statement.

“Our focus on deleveraging will ensure that we create the balance sheet strength to continue to make these important investments in support of the ongoing transformation of our business model.”

The reduction in the dividend came as Corus says the loss amounted to $4.49 per share for the quarter ended May 31 compared with a profit of $66.7 million or 33 cents per share a year ago.

Revenue in what was the company’s third quarter totalled $441.4 million, down from $461.6 million in the same quarter last year.

Television revenue fell to $403 million compared with $422.3 million a year ago, while radio revenue fell to $38.4 million compared with $39.3 million in the same quarter last year.

On an adjusted basis, which excludes the impairment charge and other one-time items, Corus says it earned $78.1 million or 37 cents per share for the quarter compared with an adjusted profit of $70.1 million or 35 cents per share a year ago. Analysts on average had expected a profit of 36 cents per share, according to Thomson Reuters Eikon.

Corus owns radio stations as well as conventional and specialty television services across the country including Global Television.

 

Companies in this story: (TSX:CJR.B)

The Canadian Press