Corus Entertainment (TSX: CJR.B) revealed a steep drop in its fiscal 2025 second-quarter performance, with consolidated segment profit plummeting 67% from the same quarter last year, settling at $17.5 million compared to $52.7 million previously.
The company’s overall revenue also fell 10% year-over-year, coming in at $270.4 million for the quarter, compared to $299.5 million in fiscal 2024’s second quarter.
Television operations, which contribute the bulk of Corus’s revenue, experienced a 9% decrease from the year-ago period, pulling in $251.8 million this quarter versus $278.1 million in the prior year. Radio fared worse on a percentage basis with a 14% decline, dropping from $21.5 million to $18.5 million. These ongoing challenges pushed consolidated segment profit margins down to 6% for the quarter, a steep fall from 18% a year earlier.
For the first six months of fiscal 2025, revenue declined 11% versus the prior year, while consolidated segment profit saw a 41% reduction in that same period.
The net loss for Q2 ballooned to $55.9 million—equivalent to a $0.28 loss per basic share—compared to a $9.8 million net loss last year. Over the six-month span, the company’s net loss was $44.0 million, reversing last year’s net income of $22.9 million.
Free cash flow for Q2 rose 40% YoY to $46.0 million, largely due to higher cash provided by operating activities. However, on a six-month basis, free cash flow dropped 37% compared to last year, landing at $35.9 million.
The company’s net debt to segment profit ratio climbed to 5.04 by February 28, 2025, up from 3.84 at the close of August 2024
Looking ahead, Corus expects continued pressure in its television advertising revenue, projecting mid-teens percentage declines year-over-year in the upcoming quarter. While the company has implemented cost savings measures and rightsizing initiatives, its near-term optimism remains tempered by what it characterizes as a “challenging industry landscape” and “limited visibility” on future market conditions. Corus intends to continue reducing general and administrative costs, targeting a 5% to 10% cut in the third quarter relative to last year.
Corus Entertainment last traded at $0.12 on the TSX.
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