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Corus Entertainment quarterly profit misses on higher costs

Reuters 

(Reuters) - Canadian company Entertainment Inc's quarterly profit missed analysts' estimate on Friday, as it spent heavily to create new content and compete with U.S. rivals such as Inc and com Inc's Prime Video.

has also been spending on ramping up its video on-demand (VOD) platform, offered as an option to online

Total costs rose eight-fold to C$13.2 million ($10 million)in the first quarter as Toronto-based tries to attract more cord-cutters who shun traditional cable bundle for

Profit at Corus' television business, which houses brands such as and Global Television, rose about 10 percent to C$184.6 million. for the unit rose 4 percent, the company said.

"We returned to growth in Television advertising revenue, driven primarily by a strong fall schedule and a significant improvement in television advertising demand," said in a statement.

The company's radio unit, however, reported a 4 percent dip in profit to C$13 million.

Corus' net income attributable to shareholders fell to C$60.4 million ($45.81 million), or 28 Canadian cents per share, in the quarter ended Nov.30, from C$77.7 million, or 38 Canadian cents per share, a year ago.

Excluding items, Corus earned 33 Canadian cents per share, but missed the average estimate of 40 Canadian cents per share, according to IBES data from Refinitiv.

Total revenue rose to C$467.5 million from C$457.4 million.

Analysts, on average, were expecting revenue of C$451.24 million.

Corus shares closed at C$5.36 on Thursday in Stock Exchange.

($1 = 1.3185 Canadian dollars)

(Reporting by Shanti S Nair in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 18:44 IST
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