Corus Entertainment Inc. says profits were nearly halved in the fourth quarter as expenses climbed higher and it booked an impairment charge on the lower estimated value of its radio broadcast licences.
The media company said net income attributable to shareholders fell to $11.9 million, or 14 cents per share, from $23.3 million or 28 cents a share in the same period last year.
Revenues declined to $193.6 million versus $195.6 million in the comparable period ended Aug. 31 a year earlier.
On an adjusted basis, earnings per share slipped to 31 cents, falling eight cents below analyst expectations, according to a survey by Thomson Reuters.
During the quarter, the company booked a series of charges like a $5.7-million impairment on its broadcast licences, about $5.2 million related to recent acquisitions and restructuring costs, and another $7.1 million on investment impairments.
Within its divisions, the quarterly revenue for radio operations dropped nearly eight per cent to $44 million.
A new wave of on-demand Internet radio stations has dramatically increased competition. Over the past few years, companies like Rdio and Songza have grabbed a part of the market. Those names have joined an already crowded space that includes online and satellite radio companies like SiriusXM and CBC.ca Radio.
Revenue for Corus’ television operations increased about 1.1% to $149.6 million, helped by a six per cent increase in revenues for its specialty advertising channels.
Corus is controlled by the Shaw family, but operates separately from Shaw Communications. The company owns a variety of television, radio and production assets, including a slate of specialty channels, including YTV, Treehouse, Nickelodeon Canada, ABC Spark, which cater to children and family shows.
It also operates the W Network, the Canadian version of OWN: Oprah Winfrey Network and Cosmopolitan TV.
The company runs 37 radio stations, children’s book publishing, and animation assets.
“Our outlook for 2014 is positive and the fundamentals are in place for a strong year ahead,” said president and CEO John Cassaday in a release.
“The recent reorganization of our leadership team will support our growth objectives and we are excited about the significant value that our pending acquisitions will bring to the business.”
Corus is in the process of integrating some assets that BCE Inc. sold to receive regulatory approval for its purchase of Astral Media. The transaction allowed Corus to buy the remaining half of Teletoon from Astral and other TV and radio interests.
Shares of the company dropped three per cent, or 78 cents, to $23.97 in late morning trading on the Toronto Stock Exchange.
