11:17 AM EDT, 06/26/2025 (MT Newswires) -- (Updates shares and adds National Bank commentary)

Corus Entertainment (CJR-B.TO) on Thursday reported improved earnings for its fiscal third quarter as revenues came in as expected and it cut expenses, while the media and content company flagged more cost cuts to come as it sees a decline in television advertising revenue and flat amortization of TV program rights in the fourth quarter.

Adjusted earnings, excluding most one-time items, for the quarter ended May 31, was $12.65 million or $0.06 per share, compared with a loss of $19.9 million, or $0.10, in the year-prior quarter. The consensus estimate compiled by FactSet expected a $0.05 loss per share.

The company reported net loss attributable to shareholders of near $7.4 million or $0.04 per basic and diluted share for the three months ended May 31, compared with net loss of $769.9 million or $3.86 per share, a year-ago.

Revenue fell to $297.8 million compared with $331.8 million, a year earlier. FactSet forecast revenue of $297.9 million.

On its outlook, the company expects a decline of about 20% year over year in television advertising revenue in its fiscal fourth quarter as it expects geopolitical and economic uncertainty and the ongoing over-supply of premium digital video inventory from foreign competitors will contribute to continued lower demand for linear advertising. It also expects amortization of TV program rights to be relatively flat in the quarter compared to the prior year.

Corus said it will continue with its implementation of additional cost reduction initiatives and anticipates general and administrative expenses to decline in the range of 10% to 15% for its fourth quarter versus the prior year, excluding any potential benefit from the Independent Local News Fund.

"Our third quarter results reflect progress on our plan to reduce the cost base of our business," said Chief Executive John Gossling. "Given persistent industry headwinds, we are making steady progress on our capital and debt plan while capturing significant savings and efficiencies through our ongoing right-sizing initiatives."

The company had its underperform rating and $0.01 price target maintained at National Bank of Canada following the results. The bank currently expects TV expenses down 0.5%, TV adjusted EBITDA down 53% and total adjusted EBITDA down 60% in Q4.

Shares of the company were last seen down $0.01 at $0.10 on the Toronto Stock Exchange.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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