REFILE-Canadian broadcaster Corus Entertainment's Q1 revenue falls 18%

Overview

• Canada media company's Q1 revenue fell 18%

• Segment profit decreased 32% due to market headwinds impacting revenue

• Company progressing on recapitalization to cut debt by over C$500 mln

Outlook

• Corus did not provide specific financial guidance for future quarters or fiscal year in press release

Result Drivers

• MARKET HEADWINDS - CEO John Gossling attributed revenue and profit declines to persistent market headwinds affecting advertising and subscriber revenue

• RECAPITALIZATION PROGRESS - Corus is advancing a recapitalization transaction aimed at reducing debt by over C$500 mln and saving up to C$40 mln in annual interest

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "hold."

• Wall Street's median 12-month price target for Corus Entertainment Inc is C$0.01, about 71.4% below its January 13 closing price of C$0.04

Press Release: ID:nCNWC7jMwa

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