Corus Entertainment Inc. on Friday reported a larger decline than expected in its first quarter of fiscal 2023 as lower ad dollars dragged revenue, reports The Wall Street Journal.
For the three months ended Nov. 30, the Canadian mass media company reported net income of 31.4 million Canadian dollars ($23.5 million), or C$0.16 a share, compared with C$76.2 million, or C$0.36 cents a share, a year earlier. Analysts polled on FactSet expected earnings to fall to C$0.25 a share.
Revenue fell to C$431.2 million from C$463.9 million, virtually in line with analyst forecasts of C$432.1 million for the period.
Radio revenue was $29.7 million, up from $29.1 million a year earlier.
Advertising continued to be a thorn in the company's side, weighing on its television segment, which saw revenue decline by 8% to C$401.5 million in the period.
Corus said it expects the trend of uncertain macroeconomic conditions to persist and lower ad spend to continue to affect the business in the year, but the rate of decline should improve in the calendar year.
Free cash flow was also lower in the period. The company generated C$20.8 million in free cash flow in the quarter compared with C$80 million in the prior-year period, mainly due to a decrease in cash provided by its operating activities and more cash used in investing activities.
Advertising continued to be a thorn in the company's side, weighing on its television segment, which saw revenue decline by 8% to C$401.5 million in the period.
Corus said it expects the trend of uncertain macroeconomic conditions to persist and lower ad spend to continue to affect the business in the year, but the rate of decline should improve in the calendar year.
Free cash flow was also lower in the period. The company generated C$20.8 million in free cash flow in the quarter compared with C$80 million in the prior-year period, mainly due to a decrease in cash provided by its operating activities and more cash used in investing activities.
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