Toronto – A difficult atmosphere to draw key promoting continues to have an effect on Corus Leisure Inc., however the firm says it might reap the advantages of the “Purchase Canadian” motion that has gained impulse in response to us
Toronto – A difficult atmosphere to draw key promoting continues to have an effect on Corus Leisure Inc., however the firm says it might reap the advantages of the “Purchase Canadian” motion that has gained impulse in response to US tariffs.
In statements to analysts concerning the name name of the second quarter of Corus on Friday, the Troy Reeb co-zo described a “outstanding change within the conduct of the Canadian shopper.”
“The ‘Purchase Canadian’ motion … helps to mitigate among the promoting tendencies all through the trade as firms alter their business methods and advertising and marketing campaigns to extend the best curiosity in Canadian merchandise,” Reeb stated.
He added that Corus has seen a constructive response to its programming this yr as advertisers search to benefit from their numerous platforms to succeed in the Canadian public.
“Along with the prevailing alternatives throughout the Corus ecosystem, we’re additionally working with our shoppers to create customized content material and assist them join with their Canadian clients,” he stated.
Even so, the tv and radio station reported a loss in its second quarter since its revenue fell 10 % in comparison with a yr in the past.
The revenues totaled $ 270.four million for the quarter, beneath $ 299.5 million. The autumn occurred when Corus reported $ 251.eight million in tv revenues, beneath the $ 278.1 million of the yr earlier than, with TV promoting round 13 % to $ 129.5 million.
In the meantime, radio revenues amounted to $ 18.5 million, beneath $ 21.5 million a yr in the past.
The online loss attributable to the shareholders totaled $ 55.9 million or 28 cents per share diluted for the quarter ending on February 28, in comparison with a lack of $ 9.eight million or 5 cents per share in the identical interval of the earlier yr.
As Corus seeks to benefit from the impulse described within the demand for Canadian promoting expenditure, TD Cowen Vincentini analyst questioned whether or not that pattern can be sustainable, particularly since Corus lacks the digital scale of the USA transmission giants.
“Are folks actually shopping for that, saying: ‘We’re going to transfer away the advertisements of those digital platforms the place we have now been placing all our cash over the past 10 years and repatrifying a Canadian participant?'” He requested.
“Are you receiving some feedback from the manufacturers which can be actually keen to try this?”
Reeb admitted that though Canadian advertisers appear extra intentions today to assist conventional transmission and printing newspapers, “there’s all the time a niche between intention and motion.”
“I feel it is too early to say if this can be a important change,” he stated.
“We’ve got actually helped some Canadian advertisers already with campaigns that we have now packaged … particularly as a result of ongoing state of affairs, however how important will it’s a change that will likely be within the common promoting line? I feel it’s too early to say it.”
Within the entrance of the business warfare, Reeb stated that Corus nonetheless has no readability about whether or not American tariffs will apply to Canadian program bought to US distributors.
However he added that Corus doesn’t anticipate his content material provide to be interrupted even when a tax is utilized. He stated that a lot of the Corus program that’s bought to the US distributors. It’s already locked underneath an earlier settlement, which might not be affected by doable tariffs.
On an adjusted base, Corus stated he misplaced 21 cents per motion in his final quarter in comparison with a good lack of three cents per motion a yr in the past. Analysts on common anticipated a lack of 12 cents per motion, in line with LSEG Knowledge & Analytics.
RBC analyst Drew McReynolds stated the outcomes would have a impartial impact on the actions, regardless of arriving barely beneath their forecast.
“Given steady volatility and uncertainty throughout the media sector, we see the outcomes (second trimester) and the attitude (third quarter) for tv promoting as usually in keeping with our expectations,” he stated in a observe.
This Canadian Press report was first printed on April 11, 2025.
Corporations on this story: (TSX: CJR.B)
Sammy Hudes, the Canadian press