Corus released its Q4 fiscal results today and the results suggest the media company is still facing challenges. Still, Troy Reeb, co chief executive officer of Corus, is confident that the broadcaster is on “the right path.”
Consolidated revenue hit $1.27 billion for year-end fiscal 2024, down from $1.51 billion in the previous fiscal. Television revenue was $1.18 billion, down 16% from $1.4 billion in 2023.
Advertising revenue decreased by 16% due to ongoing declines from an “oversupply of digital inventory in the market,” according to the financial report. Subscriber revenue decreased by 6% due to declines in cable subscribers and a steady level of digital subscribers.
Distribution, production and other revenue fell by 61% due to reduced service work, the sale of Toon Boom and a higher revenue level in the prior fiscal year from multi-year licensing deals through Corus Studios.
“Our commitment to right-sizing our business is evident in our fourth quarter and year-end results,” said John Gossling, co chief executive officer and chief financial officer. “We delivered increased free cash flow for the year, benefitting from our meaningful cost reduction efforts and deliberate focus on assets with the highest potential to generate returns. We also announced today that we have entered into an Amended and Restated Credit Facility, which is an important step in our more comprehensive plan to address our balance sheet and facilitates the execution of our business strategy.”
Part of that business strategy has been the announcement of two new channels, Flavour and Home, to replace the Food Network and HGTV, which Corus lost to Rogers earlier this year.
“We have made significant progress on our plan to create a more sustainable future following challenging industry wide conditions and increased competitive intensity this past year,” added Reeb.
To that end, in a deal that was announced today, Corus Entertainment has secured an agreement with its lenders to keep its cash flow ratio up into March of next year.
The agreement with the bank group, led by RBC Capital Markets and TD Securities, will see Corus’s revolving facility reduced to $150 million from $300 million, allowing Corus to request advances up to $65 million. Its debt to cash flow ratio is set at 5.75 until Dec. 31, changing to 7.25 between Jan. 1 and March 21, 2025.
With files from Kelly Townsend, Playbackonline.