- Consolidated revenue decreased 18% for the quarter
- Consolidated segment profit(1) decreased 32% for the quarter
- Consolidated segment profit margin(1) of 21% for the quarter
- Net loss attributable to shareholders of $11.1 million ($0.06 loss per share basic) for the quarter
- Free cash flow(1) of a negative $53.6 million for the quarter
TORONTO, Jan. 14, 2026 /CNW/ – Corus Entertainment Inc. (TSX:CJR) announced its first quarter financial results today.
“Our first quarter results were in line with our expectations, with persistent market headwinds and industry conditions continuing to impact both advertising and subscriber revenue,” said John Gossling, Chief Executive Officer. “We are pleased with our significant progress in respect of the proposed recapitalization transaction first announced in November. When completed, the proposed transaction is expected to deliver substantial balance sheet improvements, including reductions of indebtedness and other liabilities of more than $500 million and annual cash interest savings of up to $40 million, as well as extended maturity dates for credit facilities and notes. Our management information circular with details about the proposed transaction has been mailed to eligible securityholders, and the Board of Directors encourages voting in favour of the resolutions to be passed at the related meetings, which will be held on January 30th.”
Financial Highlights
|
Three months ended |
% |
||
|
(in thousands of Canadian dollars except per share amounts) |
2025 |
2024 |
Change |
|
Revenue |
|||
|
Television |
245,074 |
303,629 |
(19 %) |
|
Radio |
22,492 |
23,542 |
(4 %) |
|
267,566 |
327,171 |
(18 %) |
|
|
Segment profit (loss) (1) |
|||
|
Television |
55,945 |
85,964 |
(35 %) |
|
Radio |
5,344 |
3,867 |
38 % |
|
Corporate |
(4,041) |
(5,608) |
28 % |
|
57,248 |
84,223 |
(32 %) |
|
|
Segment profit margin (1) |
|||
|
Television |
23 % |
28 % |
|
|
Radio |
24 % |
16 % |
|
|
Consolidated |
21 % |
26 % |
|
|
Net income (loss) attributable to shareholders |
(11,108) |
11,908 |
|
|
Adjusted net income (loss) attributable to shareholders(1) |
(1,789) |
28,372 |
|
|
Earnings (loss) per share: |
|||
|
Basic and diluted |
($0.06) |
$0.06 |
|
|
Adjusted basic (1) |
($0.01) |
$0.14 |
|
|
Free cash flow (1) |
(53,587) |
(10,149) |
(428 %) |
|
(1) |
In addition to disclosing results in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company’s performance and to provide a better understanding of how management views the Company’s performance. These non-IFRS or non-Generally Accepted Accounting Principles (“GAAP”) measures can include: segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators and Non-GAAP Financial Measures section of the Company’s First Quarter 2026 Report to Shareholders. |
Segment Revenue
|
Three months ended |
% |
||
|
(in thousands of Canadian dollars) |
2025 |
2024 |
Change |
|
Revenue |
245,074 |
||
|
Television |
303,629 |
(19 %) |
|
|
Advertising |
135,339 |
176,689 |
(23 %) |
|
Subscriber |
98,763 |
115,698 |
(15 %) |
|
Distribution, production and other |
10,972 |
11,242 |
(2 %) |
|
Radio |
22,492 |
23,542 |
(4 %) |
|
Total Revenue |
267,566 |
327,171 |
(18 %) |
|
New platform revenue percentage (1) |
15 % |
12 % |
|
|
(1) |
New platform revenue does not have a standardized meaning prescribed by IFRS. For definition and explanation, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the First Quarter 2026 Report to Shareholders. |
Operational Highlights
Corus announced a strong schedule across Global and its specialty networks for Winter 2025.
- Global announces its winter 2026 lineup. On December 11, 2025, Global announced its slate of winter 2026 premieres anchored by Season 50 of Canada’s #1 reality series Survivor.[1] Global’s midseason lineup includes new series CIA, reality competition show America’s Culinary Cup and true-crime series Harlan Coben’s Final Twist. Returning top hits feature Global original Family Law, joined by new seasons of Emmy® Award-winning comedy Abbott Elementary, #1 new comedy DMV and top 20-ranked series Matlock, Saturday Night Live, NCIS, Sheriff Country[1] and more.
- Showcase and W Network announce midseason programming slate. On December 8, 2025, Showcase announced new titles joining the lineup including Peacock Original’s The Copenhagen Test, PONIES, and Devil in Disguise: John Wayne Gacy along with Sky Original limited series Amadeus. W Network’s schedule includes new Peacock Original series The ‘Burbs, and new comedy Z Suite, alongside returning favourites The Chicken Sisters, When Calls the Heart and Outlander.
- Corus’ lifestyle and factual specialty networks launch 50 new and returning series. On January 5, 2026, Canada’s most-watched lifestyle brands, Flavour Network and Home Network, and #1 factual brand The HISTORY® Channel(2), announced more than 50 new and returning series across the networks’ winter lineups. Flavour Network features The Great British Baking Show: The Professionals, Stanley Tucci’s Searching for Italy and Gordon Ramsay’s Secret Service. Home Network’s programming includes Love it or List it UK and The Block Australia. The HISTORY® Channel sees the return of Curse of Oak Island and The Unbelievable with Dan Aykroyd, along with new series History’s Deadliest with Ving Rhames.
|
(1) |
Numeris Personal People Meter Data. Total Canada. Fall’25 season-to-date (September 15 to November 23, 2025) – confirmed until November 26, 2025, Adults aged 25-54, Monday-Sunday 2am-2am, Average Minute Audience (000), Canadian Conventional Commercial English, all stations based on ‘Total’ except for CTV COM, 3+ airings, excludes MLB Playoffs. |
|
(2) |
Numeris Personal People Meter Data. Total Canada. Fall’25 season-to-date (September 1 to December 23, 2025) – confirmed until December 14, 2025, Adults aged 25-54, Monday-Sunday 2am-2am, Average Minute Audience (000), Canadian Specialty Commercial English. |
Financial Highlights
- Free cash flow(1) of a negative $53.6 million in Q1 2026 compared to a negative $10.1 million in the same comparable prior year period. The decrease in free cash flow(1) for the first quarter is mainly attributable to lower cash provided by operating activities and higher proceeds from sale of property in the prior year.
- Net debt to segment profit(1) was 7.39 times as at November 30, 2025, up from 6.01 times at August 31, 2025, as a result of the decrease in segment profit and increase in the amount drawn under the revolving credit facility.
- As of November 30, 2025, the Company had $45.2 million of cash and cash equivalents and $35.0 million available to be drawn under its Revolving Facility.
- On October 29, 2025, Corus completed an agreement to amend its Eighth Amended and Restated Credit Agreement to increase the maximum amount the Company may request as an advance on a “revolving” basis from $75.0 million to $125.0 million.
|
(1) |
Free cash flow, segment profit and net debt to segment profit do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the First Quarter 2026 Report to Shareholders and/or Management’s Discussion and Analysis in the Company’s Annual Report for the year ended August 31, 2025 (“2025 MD&A”). |
Recapitalization Transaction
Corus announced a proposed recapitalization transaction (the “Proposed Transaction”) on November 3, 2025, that is expected to strengthen its financial foundation, support its business strategy, and enable the continuity of business operations. Corus’ board of directors (the “Board”) has undertaken extensive efforts since early 2024 to address the Company’s balance sheet and financial challenges. This included conducting a comprehensive strategic review and, after an exhaustive evaluation of alternatives, the Board determined that the Proposed Transaction represents the best viable option to secure Corus’ future while maintaining as much value as possible for all stakeholders.
The Proposed Transaction will be implemented through a plan of arrangement under the Canada Business Corporations Act, on and subject to the conditions and basis described in the Meeting Materials (indicated below). On December 17, 2025, the Ontario Superior Court of Justice (Commercial List) granted an interim order in connection with the Proposed Transaction. Class A Voting Shares, Class B Non-Voting Shares and holders of the Company’s outstanding, unsecured, senior notes (collectively, the “Securityholders”) will be asked to approve the Proposed Transaction at two separate, consecutive meetings to be held on Friday, January 30, 2026. Corus mailed and filed with securities regulators its notice of meeting, management information circular, and related documents (the “Meeting Materials”) to Securityholders on January 8, 2026. The Meeting Materials are also available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.corusent.com
The Board unanimously recommended in the Meeting Materials that Securityholders vote in favour of the Proposed Transaction and encourages Securityholders to vote in advance of the relevant proxy deadlines on January 28, 2026 at 10:00 a.m. (Toronto time) using one of the methods described in the Meeting Materials.
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three months ended November 30, 2025 and Management’s Discussion and Analysis are available on the Company’s website at www.corusent.com in the Investor Relations section and under the Company’s SEDAR+ profile at www.sedarplus.ca.
A conference call with Corus senior management is scheduled for January 14, 2026 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https://emportal.ink/4sulVkl. You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.945.7677 and for North America is 1.888.699.1199. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning January 14, 2026, at 11 a.m. ET or accessible by telephone until January 21, 2026, at 1.888.660.6345 (toll-free North America) or 289.819.1450 (local or international), using replay code 52733#. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Risks and Uncertainties
Significant risks and uncertainties affecting the Company and its business are discussed under the heading “Risks and Uncertainties” and “Seasonal Fluctuations” in the 2025 MD&A, as well as in the accompanying quarterly MD&A included in the First Quarter 2026 Report to Shareholders under the heading “Risks and Uncertainties”. These discussions are important to understanding the assumptions and factors which may affect the Company’s outlook and results and are incorporated by reference.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP or non-IFRS financial measures of segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, as well as supplementary financial measures not presented in the financial statements such as new platform revenue. Non-GAAP or non-IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company’s non-GAAP measures is included in the Company’s most recent Report to Shareholders for the three months ended November 30, 2025, which is available on Corus’ website at www.corusent.com as well as on SEDAR+ at www.sedarplus.ca.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information and should be read subject to the following cautionary language. To the extent any statements made in this document, or any of the documents referenced herein, contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking information”). This forward-looking information relates to, among other things, Corus Entertainment Inc.’s or its subsidiaries’ (together, “Corus” or the “Company”) objectives, goals, …