Corus Entertainment, one of Canada’s leading media companies, has reported a continued decline in its financial performance for the third quarter of its fiscal year, highlighting the challenging state of the traditional broadcasting industry.
Revenue Down, Cost-Cutting Up
In its Q3 financial update, Corus posted a 10% drop in consolidated revenue compared to the same period last year, with total income falling to $297.8 million from $331.8 million. The company recorded a net loss of $7.3 million for the quarter and a cumulative loss of $51.3 million year-to-date.
The lion’s share of revenue still comes from television, which generated $274.5 million, down from $308.2 million a year ago. Meanwhile, its radio segment also saw a modest dip, bringing in $23.3 million compared to $23.6 million in Q3 2024.
To offset declining revenues, Corus enacted significant cost-cutting measures, reducing employee-related expenses by 7%and achieving overall cost savings of $10 million for the quarter.
TV Advertising Headwinds Continue
CEO John Gossling acknowledged the “challenging industry landscape,” particularly around advertising revenues, despite strong viewership numbers across the company’s major brands like Global TV and its specialty networks.
Corus anticipates a further 20% drop in television advertising revenue for the upcoming fourth quarter, citing ongoing economic and geopolitical uncertainties, along with the saturation of digital video inventory from global tech platforms. This oversupply is pressuring rates and fragmenting audience attention.
Strategic Reset in Motion
To navigate the turbulence, Corus is focused on reshaping its operations through:
- Right-sizing initiatives and headcount reductions
- 10–15% expected reduction in general and administrative costs for Q4
- Targeted programming investments, with a strong slate of new and returning shows for the upcoming broadcast season
The company also noted that amortization of program rights should remain steady versus last year, indicating stability in content spending amid broader cost discipline.
Regulatory Relief on the Horizon?
In a potentially positive development, Canada’s broadcast regulator (CRTC) has confirmed that Corus’ Global News stations are eligible for funding support via the Independent Local News Fund. However, Corus has yet to receive details on how much support it may receive or when funds will be disbursed.
365247 Insight
Corus Entertainment’s situation underscores a broader truth facing legacy media companies: linear television is under intense structural pressure, and digital advertising is increasingly dominated by foreign players. The company’s efforts to streamline operations and refocus on content strength are vital, but its future will likely depend on how effectively it can transition into a hybrid digital model without sacrificing its core Canadian audience.
