Corus Entertainment (CJR.B) Q2 2025 earnings summary

Executive summary

• Revenue declined 10% in Q2 due to lower linear ad demand, digital competition, and reduced subscription and production revenue.

• Segment profit dropped 67% year-over-year, impacted by lower revenue and higher programming costs, partially offset by cost savings.

• Free cash flow rose to CAD 46 million, benefiting from higher working capital and lower cash taxes despite lower segment profit.

• Audience performance remained strong across TV, specialty, and streaming, with new lifestyle brands exceeding expectations.

• Net loss attributable to shareholders was $55.9 million ($0.28 per share) for the quarter.

Financial highlights

• Consolidated Q2 revenue was CAD 270 million, down 10% year-over-year.

• Segment profit was CAD 18 million, with a margin of 6% versus 18% last year.

• Free cash flow increased to CAD 46 million, up from CAD 32.9 million last year.

• TV segment revenue was CAD 252 million, down 9%; radio segment revenue was CAD 19 million, down 14%.

• Net debt to segment profit increased to 5.04x from 3.84x at August 2024.

Outlook and guidance

• Q3 TV advertising revenue expected to decline in the mid-teens percent year-over-year due to digital inventory oversupply and economic uncertainty.

• Amortization of TV program rights anticipated to be flat year-over-year as Hollywood strike impacts subside.

• G&A expenses projected to decline 5%-10% in Q3 from continued cost-reduction efforts.

• Subscriber revenue expected to see mid-single digit declines, with some offset from streaming growth and price increases.

• Continued cost reduction initiatives are planned to support sustainability.