Corus Entertainment (CJR.B) Q3 2025 earnings summary

Executive summary

• Leadership transitioned to a single CEO structure, with John Gossling appointed CEO effective June 4, 2025, following key cost reductions and portfolio optimization.

• Significant cost reductions included a 30% headcount reduction since August 2022 and the sunset of three specialty TV services.

• Global TV and Global News achieved their best performance in over a decade, with strong audience growth and successful rebranding of specialty networks.

• Streaming platforms achieved record engagement, with 19 million monthly average hours streamed, up 7% year-over-year.

• Net loss attributable to shareholders was $7.3 million for the quarter, with a basic loss per share of $0.04.

Financial highlights

• Q3 consolidated revenue was CAD 298 million, down 10% year-over-year, mainly due to lower TV advertising and subscription revenue.

• Consolidated segment profit was CAD 62 million, down 9% year-over-year, with a segment profit margin of 21%, up from 20% last year.

• Free cash flow was negative CAD 33 million, reflecting lower segment profit, higher working capital usage, and increased restructuring costs.

• TV segment revenue was CAD 275 million, down 11%, with TV advertising revenue declining 15% and subscriber revenue down 5%.

• Radio segment revenue was CAD 23 million, down 1%, but segment profit margin doubled to 22% due to cost containment.

Outlook and guidance

• Q4 TV advertising revenue is expected to decline by about 20% year-over-year due to continued economic and industry pressures.

• Additional cost reduction initiatives are expected to reduce general and admin expenses by 10%-15% in Q4.

• Amortization of TV program rights expected to remain flat compared to the prior year quarter.

• Too early to comment on advertising trends for the next broadcast year; awaiting further details on CRTC funding decisions.

• Strategic and financial plan progressing, with continued focus on strengthening the balance sheet and right-sizing operations.