'No doubt' media is in an advertising recession: Corus CEO
, BNN Bloomberg
CORUS ENTERTAINMENT INC-B SH (CJR/B:CT)
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As of: 01/18/23 12:11:17 pm
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Canadian media company Corus Entertainment Inc. reported a lackluster first-quarter primarily dragged down by a dip in advertisement revenue.
“We are in an advertising recession…no doubt,” Doug Murphy, the president and chief executive officer of Corus Entertainment, told BNN Bloomberg in an interview on Friday.
The company said revenue fell to $431.2 million in the first quarter of 2023 compared to $463.9 million the year prior. The drop came from the decline in ad dollars within its television division, the company said. (On average, analysts had been expecting revenue of $431.8 million).
Net income was $31.4 million or 16 cents a share, compared with $76.2 million or 36 cents a share during the first quarter of last year. Analysts had been expecting earnings of 25 cents a share.
Murphy said that this trend is not only reflected in the company's most-recent quarters but is also prevalent throughout the entire media sector as the industry battles with recessionary conditions.
“We've seen recessions before. The advertising sector or the media business gets hit first abruptly and we recover first when the economic contraction subsides,” he added.
In order to steer the television and radio business through the challenging times, Murphy said he is focused on building new audiences through premium digital video platforms. He explained Corus is focused on digital expansion which has included a growing presence on streaming and digital services through Stack TV, Teletoon+ and it's global TV app.
“The traditional (media) channels business is in a slow decline but we're able to offset those declines with increases on premium digital video,” he said.
Murphy added that the TV business is no longer linear.
A promising strategy to attract ad dollars is to show advertisers the digital footprint Corus is able reach, alongside selling in-house content to broadcasters and streaming services worldwide, he said.
“That's the way of the future, and that's where all media businesses are transforming,” Murphy added.
In the meantime, the company will still have to contend with economic headwinds and a changing media landscape.
Murphy acknowledged that Corus is in for a bumpy ride in the public markets but remained optimistic in the company's future strategy for growth.
“The message to investors is we're playing the long game,” he said.
“We are in an advertising recession…no doubt,” Doug Murphy, the president and chief executive officer of Corus Entertainment, told BNN Bloomberg in an interview on Friday.
The company said revenue fell to $431.2 million in the first quarter of 2023 compared to $463.9 million the year prior. The drop came from the decline in ad dollars within its television division, the company said. (On average, analysts had been expecting revenue of $431.8 million).
Net income was $31.4 million or 16 cents a share, compared with $76.2 million or 36 cents a share during the first quarter of last year. Analysts had been expecting earnings of 25 cents a share.
Murphy said that this trend is not only reflected in the company's most-recent quarters but is also prevalent throughout the entire media sector as the industry battles with recessionary conditions.
“We've seen recessions before. The advertising sector or the media business gets hit first abruptly and we recover first when the economic contraction subsides,” he added.
In order to steer the television and radio business through the challenging times, Murphy said he is focused on building new audiences through premium digital video platforms. He explained Corus is focused on digital expansion which has included a growing presence on streaming and digital services through Stack TV, Teletoon+ and it's global TV app.
“The traditional (media) channels business is in a slow decline but we're able to offset those declines with increases on premium digital video,” he said.
Murphy added that the TV business is no longer linear.
A promising strategy to attract ad dollars is to show advertisers the digital footprint Corus is able reach, alongside selling in-house content to broadcasters and streaming services worldwide, he said.
“That's the way of the future, and that's where all media businesses are transforming,” Murphy added.
In the meantime, the company will still have to contend with economic headwinds and a changing media landscape.
Murphy acknowledged that Corus is in for a bumpy ride in the public markets but remained optimistic in the company's future strategy for growth.
“The message to investors is we're playing the long game,” he said.
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