Corus Entertainment Inc. announced its first quarter financial results today, led by continued revenue growth from its broadcasting businesses.
"We executed well on our operating strategies and delivered solid increases in revenues and segment profit," said John Cassaday, President/CEO of Corus Ent. Inc. "In Q1, we invested in programming and marketing to continue our growth momentum. These solid results were in line with our expectations and our continued confidence in our business has enabled us to once again substantially increase our dividend. We are also pleased to have announced our intention to extend our share buyback program."
Consolidated revenues for the first quarter ended Nov. 30, 2007 were $214.8 million, up 3% from $209.2 million last year. Corus reports in Canadian dollars. Consolidated segment profit was $83.4 million, up 4% from $79.9 million last year. Net income for the quarter was $39.4 million ($0.94 basic and $0.91 diluted), up 7% compared to net income of $36.7 million ($0.87 basic and $0.85 diluted) last year.
Corus Television contributed quarterly revenues of $126.1 million, up 3% from $122.6 million last year, led by specialty advertising growth of 2% and subscriber revenue growth of 4%. Quarterly segment profit increased to $62.9 million, up 4% from $60.5 million last year.
Corus Radio revenues were $79.5 million, up 5% from $75.6 million last year. Segment profit was $25.5 million, up 8% from $23.6 million last year.
Corus Content revenues were $9.6 million, down 19% from $11.7 million last year. Segment profit was $0.5 million, compared to $1.0 million last year. Animation production company Nelvana falls under this arm.
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In the first quarter of fiscal 2008, the company purchased for cancellation 659,900 Class B Non-Voting Shares at an average price of $49.01 per share. In December 2007, a further 125,300 Class B Non-Voting Shares were purchased and cancelled.
Corus' board of directors also approved a $0.20 increase in its annual dividend. The company's monthly dividend for holders of its Class A and Class B shares will increase to $0.09917 and $0.100 respectively. The dividend will be paid on each of Feb. 29, 2008, March 31, 2008 and April 30, 2008 to shareholders of record at the close of business on Feb. 14, 2008, March 14, 2008 and April 15, 2008 respectively. At the new rate, the expected dividend on an annual basis for the Company's Class A and Class B shares is $1.19 and $1.20 respectively, up from the previous rate of $0.99 and $1.00 respectively.
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