Shares in the television, radio and animation company (TSX:CJR.B) gave up $1.15 or about five per cent to close at $22.25 Thursday. That's about where they were trading until they jumped higher on March 16 after BCE Inc.'s blockbuster takeover deal for Astral Media.
Like Astral, Corus has specialty television channels and radio stations. Both companies reported quarterly results Thursday including soft advertising revenue.
However Astral's shares, supported by BCE's takeover offer of $50 per non-voting A share, held steady Thursday even though the Astral also missed analyst estimates. Astral shares closed at $49.14 on Thursday, up seven cents.
Shares of Cogeco Inc. (TSX:CGO), which bought most of Corus's radio stations in Quebec in a deal that closed last year, closed down 49 cents at $44.
Cogeco Inc. shares hadn't risen as sharply after the Astral-BCE deal and have fallen more quickly as a result of difficulties at its main subsidiary, Cogeco Cable Inc. (TSX:CGA).
Toronto-based Corus, which owns specialty channels such as YTV, radio stations such as The Edge and the Nelvana animation studio as well as other media businesses, reported it had $204 million of revenue in the quarter ended May 31.
That was down four per cent from $211.8 million in the third quarter of fiscal 2011 and $17 million below the average estimate compiled by Thomson Reuters.
On a more positive note, Corus had a higher profit in line with estimates.
Corus said had $42.2 million, or 52 cents per share of net income, compared with $40.3 million or 49 cents a year earlier, excluding discontinued operations.
"Despite tough year-over-year comparables, we delivered a solid performance in the quarter, growing net income and earnings per share, maintaining our exceptional margins through rigorous cost controls and continuing to generate impressive free cash flow," Corus CEO John Cassaday said in a statement.
"Our specialty advertising revenues in the quarter were impacted by soft demand in the Kids segment, which overshadowed the continued strong performance in our Women's vertical and newer services, including ABC Spark. Looking ahead, our exceptional brands, superior programming and disciplined cost controls position us well for a recovery in the advertising market."Suggest a correction