Corus Entertainment (CJR.B) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue declined 10% year-over-year to $270 million, driven by lower demand for linear advertising, oversupply of premium digital inventory, and reduced subscription and production revenue.

• Segment profit dropped 67% to $18 million, with a margin of 6%, impacted by lower revenue and higher programming costs, partially offset by cost savings initiatives.

• Net loss attributable to shareholders was $55.9 million for Q2, compared to a net loss of $9.8 million in the prior year.

• Free cash flow increased 40% to $46 million in Q2, benefiting from higher working capital contribution and reduced cash taxes.

• New lifestyle brands, Home and Flavour Networks, exceeded expectations, with strong audience growth across TV and digital platforms.

Financial highlights

• Consolidated revenue for Q2 was $270 million, down 10% year-over-year; segment profit was $18 million, down 67%, with a margin of 6%.

• Free cash flow rose 40% to $46 million in Q2; net debt to segment profit increased to 5.04x from 3.84x at August 2024.

• Television revenue was $252 million, down 9%; radio revenue was $19 million, down 14%.

• Segment profit margin was 6% in Q2 (down from 18%); TV segment margin was 9% (down from 21%); radio segment margin was 8% (up from 4%).

• Adjusted net loss for Q2 was $42.7 million; basic loss per share was $0.28.

Outlook and guidance

• Q3 TV advertising revenue is 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; G&A expenses projected to decline 5–10% in Q3.

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

• Updated credit facility provides improved terms and greater financial stability.