Corus Entertainment misses revenue estimate, shares fall

(Reuters) - Canada's Corus Entertainment Inc CJRb.TO on Wednesday posted lower-than-expected quarterly revenue, led by a 5 percent fall in the media company's radio business, dragging its shares down almost 5 percent.

Corus, which operates a network of radio stations and children’s TV channels including YTV, Nickelodeon and Cartoon Network, said its radio segment, which has been struggling for a while, saw revenue come in at C$35.2 million ($28.2 million), while its television business revenue dipped slightly to C$346 million.

Total revenue fell nearly 1 percent to C$381.2 million, missing the average analyst estimate of C$389.7 million, according to Thomson Reuters I/B/E/S.

The revenue miss was mostly on account of lower merchandising, distribution and other ancillary segments, RBC Capital Markets analyst Drew McReynolds said in a client note.

Net income attributable to shareholders rose 15.7 percent to C$28.9 million in the quarter as the company also benefited from a one-time gain of C$16.5 million.

Excluding items, Corus earned 22 Canadian cents per share, 6 Canadian cents above analysts’ expectations.

The Toronto-based company also said it would likely hit its debt-reduction target by the end of the third quarter of fiscal 2018, one quarter ahead of schedule.

Shares of the company were down nearly 2 percent at C$12.50 on the Toronto Stock Exchange in mid-morning trade, after hitting lows of C$12.15.

Reporting by Ahmed Farhatha in Bengaluru; Editing by Maju Samuel