* Q1 revenue C$468.0 mln vs est C$478.7 mln
* Adj profit C$0.41/basic shr vs est C$0.45
* Shares fall as much as 2.7 pct
(Adds analyst comments, shares)
By Komal Khettry
Jan 11 Canadian media company Corus
Entertainment Inc reported a lower-than-expected
quarterly profit for the twelfth straight quarter, hurt by lower
revenue at its television unit on a pro-forma basis.
Shares of the company fell as much as 2.7 percent to C$12.91
in morning trading on Wednesday.
This is the first time Corus' first-quarter results include
its 2016 acquisition of media assets from sister company Shaw
Communications Inc and excludes Corus' pay television
business, which the company exit last year.
Corus, whose existing content targeting women and children
was augmented with the Global News network and lifestyle
channels through the C$2.65 billion Shaw deal, said subscriber
revenues at the company's television business shot up by 45
percent, or 6 percent on a pro-forma basis.
However, advertising revenue fell 7 percent, while
merchandising, distribution and other revenues slumped 33
percent on a pro-forma basis.
"Our Q1 results reflect meaningful improvements in our cost
structure, with solid segment profit margins and subscriber
revenue growth offset by transitional advertising revenue
softness, as anticipated," Chief Executive Doug Murphy said.
Overall revenue at the television business more than doubled
to C$425.6 million ($321.35 million), but fell 5 percent on a
Analysts at RBC Capital Markets had estimated revenue of
C$441 million for the business.
"Although overall results were still on the weaker side, the
outlook for subscriber revenue should be stable while other
revenue can be volatile from quarter to quarter," RBC analysts
Net income attributable to Corus's shareholders rose to
C$71.1 million in the first quarter ended Nov. 30 from C$41.3
million a year earlier.
The company reported earnings of 36 Canadian cents per
share, compared with 47 Canadian cents per share, a year
The Toronto-based company reported revenue of about C$468
million, missing the analysts' average estimate of C$478.7
Corus reported adjusted earnings of 41 Canadian cents per
basic share. Analysts on average had expected 45 Canadian cents,
according to Thomson Reuters I/B/E/S.
($1 = 1.32 Canadian dollars)
(Reporting by Komal Khettry in Bengaluru; Editing by Shounak