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Be the first with the news that moves the market- National broadcaster, Corus Entertainment Inc (TSX:CJR.B), has reported strong Q1 2020 finical results, but is still cautious about COVID-19’s ongoing effect on the company
- The company saw a two per cent decrease in revenue, but adjusted profits were up C$3 million to C$18.5 million
- Despite these steady figures, the company stated it is too early to determine the pandemic’s effect on the company
- As a result, Corus has chosen to not announce its June dividend until a clearer picture of the pandemics impact is available
- Corus Entertainment Inc (CJR.B) is down 1.99 per cent, with shares trading at $2.46 and a market cap of $509.4 million
Broadcaster, Corus Entertainment (TSX:CJR.B), has reported steady figures in 2020’s first quarter, but is still cautious about the coming months.
The company saw a marginal two per cent decrease in revenue, when compared to the previous corresponding period.
Despite this slight reduction, the company reported a net profit of C$18.5 million, which is a substantial improvement when compared to $6.3 million in 2019.
The company attributes the steep jump in profits to one-off costs in 2019, which were not replicated this year. However, after adjusting for these impairments, the company still increased its net earnings by around $3 million.
Despite these strong figures, the ongoing COVID-19 pandemic has cast a shadow on uncertainty across the coming quarters.
As a result, Corus’s President and CEO, Doug Murphy seems concerned with upcoming challenges facing the company.
“At this unprecedented time across the world, we are focused on the health and well-being of our employees, who continue to diligently serve the needs of our audiences, clients and partners.
“We are benefitting from the work we have done to create sufficient liquidity and improve our financial flexibility, and our long-term strategy remains unchanged,” he said.
The company went on to state that it is too early to determine the pandemic’s overall effect on its financials. However, in an effort pre-empt any negative impacts, Corus has chosen to withhold declaring its June dividend until a later date.
To be clear, the company has not revoked or suspended the dividend. Instead, Corus is waiting for the pandemic’s impact to be better understood before calculating an appropriate dividend.
These quarterly results only cover the period up to February 29. The pandemic’s economic effects became more dramatic in the weeks following the end of February.
Therefore, a clearer picture of COVID-19’s effects on the company will be available when the next quarterly report is released.
Corus Entertainment Inc (CJR.B) is down 1.99 per cent, with shares trading for $2.46 at 3:31pm EST.
