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Headline, Industry News
Corus hints at pact with Rogers
Tuesday July 10th 2007TORONTO (CP) _ The chief executive of Corus Entertainment Inc. (TSX:CJR.B) said Tuesday that shift in ownership of Citytv would likely have no impact on Corus, but added that the company’s local stations could partner with a major Canadian broadcaster in a programming pact.
John Cassaday told analysts during an earnings call that the shift of Citytv into the hands of Rogers Communications (TSX:RCI.B) for $375 million cash will face Corus with nothing that the company "didn’t experience when the Citytv franchise was owned by the Waters family.
"I can’t see how it could have any change in the competitive environment at all," he said.
The Citytv stations _ located in Toronto, Winnipeg, Edmonton, Calgary and Vancouver _ were initially part of a $1.4 billion transaction between CTVglobemedia Inc. to buy CHUM Ltd. The Canadian Radio-television and Telecommunications Commission decided that the assets must be sold before the deal would be approved.
Cassaday hinted that Corus could be planning to join forces with a major Canadian broadcaster to boost profits at its own local stations, though he offered no additional details.
"From a strategic point of view, what we would be looking for over the next couple of years is a long-term relationship with a partner _ whether it’s the CBC, the A Channel or City or Global _ the right group to affiliate with so we can get access to terrific programming and continue to generate the profit to serve those communities," he said.
Corus owns small local stations in Peterborough, Durham and Kingston, Ont.
"Getting good growth out of them is a more difficult challenge because they are in relatively small markets," he added.
Corus reported that during the third quarter its profits increased to $29.6 million from a year-earlier $23.2 million, led by strong revenue growth from its broadcasting businesses.
Net income for the quarter ended May 31 was 68 cents a diluted share, compared with 54 cents per share a year ago, the Toronto-based company reported Tuesday.
Revenues were up nine per cent at $197.6 million, up nine per cent, with combined radio and television revenue up seven per cent for the quarter and year-to-date.
Corus Television contributed quarterly revenues of $109.2 million, up nine per cent, led by specialty advertising growth of 12 per cent and subscriber revenue growth of seven per cent.
Costs for television sales, and administrative expenses jumped to $63.6 million from $58.9 million, while content costs rose to $14.6 million from $10.4 million a year ago.
"I think our costs in TV are up largely as a result of program ammortization," Cassaday said.
He noted that Corus has heavily invested in its pay television assets, such as Movie Central, a cable channel showing recent film releases and programming from U.S. cable networks like HBO.
"You can expect to see that trend continue into Q4 and throughout fiscal ’08," he added.
"Our program costs are going to be higher than they’ve been historically because of competitive factors and we’re going to have to look to adjust our costs in other ways to ensure we maintain our margins."
Corus Radio revenues were $74.8 million, up four per cent, and Corus Content revenues were $14.6 million, up 34 per cent.
Corus Entertainment is prominent in specialty TV and radio, with additional assets in pay television, advertising and digital audio services, TV broadcasting, children’s book publishing and children’s animation.
The company’s multimedia entertainment brands include YTV, Treehouse, W Network, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107.
Company shares closed ahead 21 cents to $49.54 on the Toronto Stock Exchange.
Headline, Industry News
Corus hints at pact with Rogers
Tuesday July 10th 2007TORONTO (CP) _ The chief executive of Corus Entertainment Inc. (TSX:CJR.B) said Tuesday that shift in ownership of Citytv would likely have no impact on Corus, but added that the company’s local stations could partner with a major Canadian broadcaster in a programming pact.
John Cassaday told analysts during an earnings call that the shift of Citytv into the hands of Rogers Communications (TSX:RCI.B) for $375 million cash will face Corus with nothing that the company "didn’t experience when the Citytv franchise was owned by the Waters family.
"I can’t see how it could have any change in the competitive environment at all," he said.
The Citytv stations _ located in Toronto, Winnipeg, Edmonton, Calgary and Vancouver _ were initially part of a $1.4 billion transaction between CTVglobemedia Inc. to buy CHUM Ltd. The Canadian Radio-television and Telecommunications Commission decided that the assets must be sold before the deal would be approved.
Cassaday hinted that Corus could be planning to join forces with a major Canadian broadcaster to boost profits at its own local stations, though he offered no additional details.
"From a strategic point of view, what we would be looking for over the next couple of years is a long-term relationship with a partner _ whether it’s the CBC, the A Channel or City or Global _ the right group to affiliate with so we can get access to terrific programming and continue to generate the profit to serve those communities," he said.
Corus owns small local stations in Peterborough, Durham and Kingston, Ont.
"Getting good growth out of them is a more difficult challenge because they are in relatively small markets," he added.
Corus reported that during the third quarter its profits increased to $29.6 million from a year-earlier $23.2 million, led by strong revenue growth from its broadcasting businesses.
Net income for the quarter ended May 31 was 68 cents a diluted share, compared with 54 cents per share a year ago, the Toronto-based company reported Tuesday.
Revenues were up nine per cent at $197.6 million, up nine per cent, with combined radio and television revenue up seven per cent for the quarter and year-to-date.
Corus Television contributed quarterly revenues of $109.2 million, up nine per cent, led by specialty advertising growth of 12 per cent and subscriber revenue growth of seven per cent.
Costs for television sales, and administrative expenses jumped to $63.6 million from $58.9 million, while content costs rose to $14.6 million from $10.4 million a year ago.
"I think our costs in TV are up largely as a result of program ammortization," Cassaday said.
He noted that Corus has heavily invested in its pay television assets, such as Movie Central, a cable channel showing recent film releases and programming from U.S. cable networks like HBO.
"You can expect to see that trend continue into Q4 and throughout fiscal ’08," he added.
"Our program costs are going to be higher than they’ve been historically because of competitive factors and we’re going to have to look to adjust our costs in other ways to ensure we maintain our margins."
Corus Radio revenues were $74.8 million, up four per cent, and Corus Content revenues were $14.6 million, up 34 per cent.
Corus Entertainment is prominent in specialty TV and radio, with additional assets in pay television, advertising and digital audio services, TV broadcasting, children’s book publishing and children’s animation.
The company’s multimedia entertainment brands include YTV, Treehouse, W Network, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107.
Company shares closed ahead 21 cents to $49.54 on the Toronto Stock Exchange.
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Headline, Industry News
Corus hints at pact with Rogers
Tuesday July 10th 2007TORONTO (CP) _ The chief executive of Corus Entertainment Inc. (TSX:CJR.B) said Tuesday that shift in ownership of Citytv would likely have no impact on Corus, but added that the company’s local stations could partner with a major Canadian broadcaster in a programming pact.
John Cassaday told analysts during an earnings call that the shift of Citytv into the hands of Rogers Communications (TSX:RCI.B) for $375 million cash will face Corus with nothing that the company "didn’t experience when the Citytv franchise was owned by the Waters family.
"I can’t see how it could have any change in the competitive environment at all," he said.
The Citytv stations _ located in Toronto, Winnipeg, Edmonton, Calgary and Vancouver _ were initially part of a $1.4 billion transaction between CTVglobemedia Inc. to buy CHUM Ltd. The Canadian Radio-television and Telecommunications Commission decided that the assets must be sold before the deal would be approved.
Cassaday hinted that Corus could be planning to join forces with a major Canadian broadcaster to boost profits at its own local stations, though he offered no additional details.
"From a strategic point of view, what we would be looking for over the next couple of years is a long-term relationship with a partner _ whether it’s the CBC, the A Channel or City or Global _ the right group to affiliate with so we can get access to terrific programming and continue to generate the profit to serve those communities," he said.
Corus owns small local stations in Peterborough, Durham and Kingston, Ont.
"Getting good growth out of them is a more difficult challenge because they are in relatively small markets," he added.
Corus reported that during the third quarter its profits increased to $29.6 million from a year-earlier $23.2 million, led by strong revenue growth from its broadcasting businesses.
Net income for the quarter ended May 31 was 68 cents a diluted share, compared with 54 cents per share a year ago, the Toronto-based company reported Tuesday.
Revenues were up nine per cent at $197.6 million, up nine per cent, with combined radio and television revenue up seven per cent for the quarter and year-to-date.
Corus Television contributed quarterly revenues of $109.2 million, up nine per cent, led by specialty advertising growth of 12 per cent and subscriber revenue growth of seven per cent.
Costs for television sales, and administrative expenses jumped to $63.6 million from $58.9 million, while content costs rose to $14.6 million from $10.4 million a year ago.
"I think our costs in TV are up largely as a result of program ammortization," Cassaday said.
He noted that Corus has heavily invested in its pay television assets, such as Movie Central, a cable channel showing recent film releases and programming from U.S. cable networks like HBO.
"You can expect to see that trend continue into Q4 and throughout fiscal ’08," he added.
"Our program costs are going to be higher than they’ve been historically because of competitive factors and we’re going to have to look to adjust our costs in other ways to ensure we maintain our margins."
Corus Radio revenues were $74.8 million, up four per cent, and Corus Content revenues were $14.6 million, up 34 per cent.
Corus Entertainment is prominent in specialty TV and radio, with additional assets in pay television, advertising and digital audio services, TV broadcasting, children’s book publishing and children’s animation.
The company’s multimedia entertainment brands include YTV, Treehouse, W Network, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107.
Company shares closed ahead 21 cents to $49.54 on the Toronto Stock Exchange.
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