Corus Entertainment Inc., owner of multiple specialty television channels, radio stations and the Nelvana animation studio, reported stronger first-quarter financial results Tuesday.
The Toronto-based company had 65 cents per share of adjusted earnings, which was three cents per share ahead of analyst estimates and up from 63 cents per share a year earlier.
Overall revenue for the three months ended Nov. 30 was also up compared with the previous year but just below a composite estimate compiled by Thomson Reuters.
“We have again benefited from our disciplined focus on cost controls, delivering excellent margins this quarter in the face of slow economic growth and tough year-over-year comparables in our merchandising business,” said John Cassaday, Corus president and CEO.
He said 2014 is a pivotal year for Corus, with its recent acquisition of full ownership of Teletoon, from its partner Astral Media, strong ratings for its core TV brands and increases from several of newer brands.
Corus reported its adjusted net income was $55.2 million, up from $52.2 million while net income under standard accounting was $150.9 million, or $1.78 per share, up from $52.2 million.
The adjusted income excluded several items including the impact of a new fair value estimate of its 50% stake in Teletoon, which added $127.9 million or $1.51 per share to net income.
Corus acquired the remaining 50% of Teletoon after Astral was required to sell its half in order to win approval for its takeover by BCE Inc., owner of Bell Canada, CTV and other media outlets.
The first-quarter adjustments also excluded $21.9 million, or 25 cents per share, of costs related to business acquisitions and restructurings, as well as total of about $10.6 million of other special items.
Revenue for the three months ended Nov. 30 was $226 million, up from $209 million a year earlier and just short of estimates.
Analysts were looking for 62 cents of adjusted earnings with $227.8 million of revenue for the three months ended Nov. 30, according to estimates compiled by Thomson Reuters.
The top line growth came from the Corus television division, which rose to $177.9 million from $157.6 million revenue, while revenue at its radio division declined to $48 million from $52.3 million.
Corus also announced it’s monthly dividend will increase by 6.9%, starting at the end of February.
On an annual basis, the Corus dividend rises by seven cents to $1.09 per B share and to $1.085 per A share, or about nine cents per share on a monthly basis starting Feb. 28.
