Company News

CORRECTED-UPDATE 1-Corus Entertainment beats quarterly profit expectations

(Corrects to show analysts’ estimate was for 11 Canadian cents per share, not beat by 11 Canadian cents)

April 5 (Reuters) - Canadian media company Corus Entertainment Inc on Thursday beat quarterly profit expectations as it cut costs and gained from TV merchandising and distribution.

The company which operates a network of radio stations and children’s TV channels including YTV, Nickelodeon and Cartoon Network, said its merchandising and distribution revenue rose 24.6 percent during the quarter.

Costs fell 3.3 percent compared to the year-ago quarter.

On an adjusted basis, the company earned 20 Canadian cents per share. The average analyst expectation was for 11 Canadian cents, according to Thomson Reuters I/B/E/S.

Corus, which bought Shaw Media from its sister concern Shaw communications, is focusing on producing original content and selling it abroad to counter competition from online streaming services like Netflix.

Net income attributable to shareholders rose to C$40.0 million, or 19 Canadian cents per share in the second quarter ended Feb. 28, from C$24.9 million, or 12 Canadian cents per share, a year earlier.

Revenue rose to C$369.5 million from C$368.2 million. (Reporting by Akshara P in Bengaluru; Editing by Shailesh Kuber)