Consolidated revenue decreased 13% for the quarter and 14% for the year-to-date Consolidated segment profit(1) decreased 11% for the quarter and 9% for the year-to-date Consolidated segment profit margin(1) of 18% for the quarter and 26% for the year-to-date Net loss attributable to shareholders of $9.8 million ($0.05 loss per share basic) for the quarter and net income attributable to shareholders of $22.9 million ($0.12 per share basic) for the year-to-date Proforma net debt to segment profit(1) of 3.62 times at February 29, 2024, which excludes contributions to segment profit from a prior year business divestiture, was consistent with the proforma net debt to segment profit as at August 31, 2023 Free cash flow(1) of $32.9 million for the quarter and $56.6 million for the year-to-date TORONTO, April 12, 2024 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today. "We delivered a strong quarter of free cash flow generation that was directed towards reduction of our term loan facility as we maintained focus on streamlining our operating model," said Doug Murphy, President and Chief Executive Officer. "Television advertising revenue for the second quarter was in line with our expectations. Importantly, premium scripted content returned to our networks and platforms in February with promising early audience results. That said, visibility in the advertising market remains limited despite the normalization of our program supply. Demand creation is our priority to monetize these audiences while we concurrently deploy a disciplined focus on expense reduction to improve operational efficiency." Financial Highlights Three months ended Six months ended February 29, February 28, % February 29,  February 28, % (in thousands of Canadian dollars except per share amounts) 2024 2023 Change 2024 2023 Change Revenue Television 278,059 321,548 (14 %) 620,492 723,077 (14 %) Radio 21,478 22,323 (4 %) 48,949 51,985 (6 %) 299,537 343,871 (13 %) 669,441 775,062 (14 %) Segment profit (loss) (1) Television 58,903 63,019 (7 %) 180,661 194,778 (7 %) Radio 857 350 145 % 5,402 6,372 (15 %) Corporate (7,015) (4,234) (66 %) (12,469) (10,323) (21 %) 52,745 59,135 (11 %) 173,594 190,827 (9 %) Segment profit margin (1) Television 21 % 20 % 29 % 27 % Radio 4 % 2 % 11 % 12 % Consolidated 18 % 17 % 26 % 25 % Net income (loss) attributable to shareholders (9,780) (15,450) 37 % 22,931 15,937 44 % Adjusted net income (loss) attributable to shareholders (1) (5,944) (13,880) 57 % 35,303 19,586 80 % Basic earnings (loss) per share ($0.05) ($0.08) $0.12 $0.08 Adjusted basic earnings (loss) per share (1) ($0.03) ($0.07) $0.18 $0.10 Diluted earnings (loss) per share ($0.05) ($0.08) $0.12 $0.08 Free cash flow (1) 32,862 28,397 16 % 56,570 49,207 15 % (1) In addition to disclosing results in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company's performance and to provide a better understanding of how management views the Company's performance. These non-IFRS or non-Generally Accepted Accounting Principles ("GAAP") measures can include: segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, proforma net debt to segment profit and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators and Non-GAAP Financial Measures section of the Company's Second Quarter 2024 Report to Shareholders. Segment Revenue Three months ended Six months ended February 29, February 28, % February 29, February 28, % (in thousands of Canadian dollars) 2024 2023 Change 2024 2023 Change Revenue   278,059   620,492 Television 321,548 (14 %) 723,077 (14 %) Advertising 148,979 169,124 (12 %) 358,275 421,637 (15 %) Subscriber 117,285 124,051 (5 %) 235,535 251,566 (6 %) Distribution, production and other 11,795 28,373 (58 %) 26,682 49,874 (47 %) Radio 21,478 22,323 (4 %) 48,949 51,985 (6 %) Total Revenue 299,537 343,871 (13 %) 669,441 775,062 (14 %) New platform revenue percentage (1) 12 % 12 % — 12 % 11 % (4 %) (1) New platform revenue does not have a standardized meaning prescribed by IFRS. For definition and explanation, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Second Quarter 2024 Report to Shareholders. Operational Highlights  Corus advanced its strategic priorities on multiple fronts. The Company launched its Winter/Spring 2024 schedule for Global TV on traditional and streaming platforms, continued to implement cost savings initiatives and made bank debt repayments. The Company continues to navigate an uncertain macroeconomic environment. Global launches its Winter/Spring 2024 Programming. Global Television's core prime-time audiences increased(1) following the return of blockbuster franchises NCIS and FBI, hit dramas CSI: Vegas and 9-1-1, acclaimed comedies Abbott Elementary and Ghosts, season 46 of Survivor, fan favourite Big Brother Canada and the introduction of new drama Elsbeth. HGTV Canada and MEM announced the greenlight of Renovation Resort. HGTV Canada's Scott McGillivray and Brian Baeumler return as co-hosts and judges in Season 2 of Renovation Resort, distributed by Corus Studios. The series successfully debuted as the #1 Canadian original series on Specialty television in Spring 2023(2). (1) Source: Numeris PPM Data, Total Canada, Spring'24 (Feb 12/24 - Mar 17/24) vs Spring '24 Prior Weeks (Jan 1/24 - Feb 11/24) - confirmed to 3/1/24, A25-54, AMA(000),  core primetime: Mo-Su 8-11pm, Local time (2) Source: Numeris PPM Data, SP'23 (Jan 2/23 – May 28/23) – confirmed data, Total Canada, 3+ airings, CDN SPEC COM ENG excluding sports, based on AMA(000), A25-54 Financial Highlights Free cash flow(1) of $32.9 million in Q2 and $56.6 million year-to-date compared to $28.4 million and $49.2 million year-to-date, respectively, in the same comparable prior year periods. The increase in free cash flow(1) for the second quarter and the year-to-date is mainly attributable to higher cash provided by operating activities. Net debt to segment profit(1) was 3.55 times as at February 29, 2024. Proforma net debt to segment profit(2) was 3.62 times at February 29, 2024, unchanged from August 31, 2023 and down from 3.67 times at November 30, 2023. In the second quarter of fiscal 2024, Corus paid down $21.5 million of debt and $31.5 million year-to-date. As of February 29, 2024, the Company had $61.5 million of cash and cash equivalents and $236.4 million available to be drawn under its $300.0 million Revolving Facility. (1) Free cash flow, segment profit, net debt to segment profit and proforma net debt to segment profit do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the Second Quarter 2024 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2023 ("2023 MD&A"). (2) Proforma net debt to segment profit ratio excludes contributions to segment profit from Toon Boom Animation Inc., which was sold in August 2023, for the most recent four quarters. Corus Entertainment Inc. reports its financial results in Canadian dollars. The unaudited interim condensed consolidated financial statements and accompanying notes for the three and six months ended February 29, 2024 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section and under the Company's SEDAR+ profile at www.sedarplus.ca. A conference call with Corus senior management is scheduled for April 12, 2024 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https://emportal.ink/3VfgNm0. You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.764.8650 and for North America is 1.888.664.6383. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning April 12, 2024, at 11 a.m.ET or accessible by telephone until April 19, 2024, at 1.888.390.0541 (toll-free North America) or 416.764.8677 (local or international), using replay code 674162#. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section. Outlook In the third quarter, delivery of new episodes of scripted programming are expected to resume closer to normal levels following the settlement of the labour actions by the U.S. writers and actors guilds. However, lingering impacts from the lengthy disruption of advertising markets due to the strikes, as well as continuing macroeconomic uncertainty and the competitive environment, are expected to lower demand for linear advertising. As such, the Company expects year-over-year declines in Television advertising revenue in the third quarter of fiscal 2024 in the range of 10% to 15%. Amortization of TV program rights is expected to decline in the quarter by a similar range on a year-over-year basis and the Company will continue with its implementation of additional cost reduction initiatives. While the Company continues to expect improvement in the macroeconomic environment in the medium term, visibility remains limited at this time. Use of Non-GAAP Financial Measures This press release includes the non-GAAP or non-IFRS financial measures of segment profit (loss), segment profit margin, free cash flow, adjusted net income attributable to shareholders, adjusted basic earnings per share, net debt to segment profit, proforma net debt to segment profit, as well as supplementary financial measures not presented in the financial statements such as new platform revenue. Non-GAAP or non-IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles ("GAAP") and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-GAAP measures is included in the Company's most recent Report to Shareholders for the three and six months ended February 29, 2024, which is available on Corus' website at www.corusent.com as well as on SEDAR+ at www.sedarplus.ca. Caution Concerning Forward-Looking Information This press release contains forward-looking information and should be read subject to the following cautionary language: To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking information"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2024, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's ability to manage retention and reputation risks related to its on-air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company's ability to source, produce or sell desirable content and the Company's capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information. Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company's ability to attract, retain and manage fluctuations in advertising revenue; the Company's ability to maintain relationships with key suppliers and clients and on anticipated financial terms and conditions; audience acceptance of the Company's television programs and cable networks; the Company's ability to manage retention and reputation risks related to its on-air talent; the Company's ability to recoup production costs; the availability of tax credits; the availability of expected news, production and related credits, programs and funding; the existence of co-production treaties; the Company's ability to compete in any of the industries in which it does business including with competitors which may not be regulated in the same way or to the same degree; the business and strategic opportunities (or lack thereof) that may be presented to and pursued by the Company; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations including statements, decisions or positions by applicable regulators including, without limitation, the Canadian Radio-television and Telecommunications Commission ("CRTC"), Canadian Heritage and Innovation, Science and Economic Development Canada ("ISED"); changes to licensing status or conditions; unanticipated or un-mitigatable programming costs; the Company's ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage its growth; the Company's ability to successfully defend itself against litigation matters and complaints; failure to meet covenants under the Company's senior credit facility, senior unsecured notes or other instruments or facilities; epidemics, pandemics or other public health and safety crises in Canada and globally; physical and operational changes to the Company's key facilities and infrastructure; cybersecurity threats or incidents to the Company or its key suppliers and vendors; and changes in accounting standards. Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Company's Management's Discussion and Analysis for the year ended August 31, 2023 and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended August 31, 2023. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on the Company's forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document and may be updated or amended from time to time. Except as otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise. About Corus Entertainment Inc.| Corus Entertainment Inc. (TSX:CJR) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 33 ...