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Corus Entertainment Inc (TSE:CJR.B)
:CJR.B
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Corus Entertainment (CJR.B) AI Stock Analysis

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TSE:CJR.B

Corus Entertainment

(OTC:CJR.B)

Rating:42Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Corus Entertainment's financial instability, reflected in negative equity and declining revenue, is the most significant factor affecting its stock score. Technical indicators also suggest a bearish trend, while valuation metrics show ongoing challenges. Although cost reduction efforts and digital platform growth offer some positives, they are insufficient to outweigh the broader financial and market difficulties.
Positive Factors
Financial Performance
The Q3 financial result came in better than expected with notably lower costs driving a beat in terms of EBITDA and adj. EPS.
Network Transition Success
The transition to new Home and Flavour networks appears successful, ranking #1 and #2 in specialty lifestyle, which could help moderate subscriber declines.
Profitability Improvement
Better profitability due to lower TV costs.
Negative Factors
Advertising Challenges
The advertising outlook remains weak from ongoing economic uncertainty, competition, and secular declines in linear.
Debt Concerns
The outlook for Corus Entertainment is very unclear given weak advertising trends, program supply uncertainty and approximately $1 billion of debt on its balance sheet.
Revenue Decline
Corus reported Q2/25 results with revenues down 10% year over year and adjusted EBITDA down 67%, reflecting a continued weak ad environment.

Corus Entertainment (CJR.B) vs. iShares MSCI Canada ETF (EWC)

Corus Entertainment Business Overview & Revenue Model

Company DescriptionCorus Entertainment Inc. is a Canadian media and entertainment company headquartered in Toronto, Ontario. The company operates through various sectors including television, radio, and content production. Corus owns a portfolio of specialty television channels, radio stations, and a robust content studio that produces various types of media content, including animation and live-action programming. The company is known for its popular brands such as Global Television Network, W Network, and YTV, catering to a diverse audience across different demographics.
How the Company Makes MoneyCorus Entertainment generates revenue primarily through advertising sales, subscription fees, and content licensing. Advertising sales constitute a significant portion of the company's revenue, as businesses pay to advertise on Corus's various television channels and radio stations. Subscription fees are earned from cable and satellite operators who provide Corus's specialty channels to their customers. Content licensing involves selling rights to Corus's original programming to other broadcasters and streaming platforms domestically and internationally. Additionally, Corus benefits from strategic partnerships and collaborations that enhance its distribution capabilities and expand its content reach, further contributing to its financial performance.

Corus Entertainment Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q3-2025)
|
% Change Since: -9.09%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Negative
The earnings call highlighted effective cost reduction and growth in digital platforms, but these were overshadowed by a significant decline in revenue and challenges in the advertising market. The sentiment is impacted by the increased financial leverage and uncertainty in the market.
Q3-2025 Updates
Positive Updates
Successful Cost Reduction Initiatives
Operating costs reduced by nearly 30% compared to August 2022, with significant reductions in general and administrative expenses (9% reduction) and employee costs (7% reduction).
Growth in Streaming and Digital Platforms
Corus' streaming portfolio had its strongest winter-spring season with 19 million average hours streamed, up 7% year-over-year. The Global TV app also gained momentum with increased live viewing.
Strong Performance of Home and Flavour Networks
Home and Flavour are top 20 English language specialty services and the #1 and #2 lifestyle networks, with Slice audiences up 5% this spring.
Negative Updates
Decline in Consolidated Revenue
Consolidated revenue for Q3 decreased by 10% year-over-year to $298 million, driven by a 15% decline in TV advertising revenue.
Challenging Advertising Environment
The advertising environment remains challenging with ongoing uncertainty, lower advertising demand on linear television, and oversupply of digital inventory from foreign competitors.
Increase in Net Debt to Segment Profit Ratio
Net debt to segment profit ratio increased to 5.39x at the end of Q3, compared to 3.84x at the end of August 2024, reflecting the impact of lower segment profit.
Company Guidance
During the Corus Entertainment Q3 2025 Analyst and Investor Conference Call, CEO John Gossling outlined several key metrics and strategic actions impacting the company. Corus reported consolidated revenue of $298 million, a 10% decrease from the previous year, while consolidated segment profit stood at $62 million with a margin increase to 21%. Despite a challenging advertising environment, characterized by a 15% decline in TV advertising revenue, Corus achieved a 9% reduction in general and administrative expenses, largely due to a 7% decrease in employee costs. The company's net debt to segment profit ratio rose to 5.39x, reflecting the impact of lower segment profit. Looking ahead, Corus anticipates a 20% decline in TV advertising revenue for Q4 of fiscal 2025, while implementing cost reduction initiatives expected to cut general and admin expenses by 10% to 15% compared to last year. Additionally, Corus emphasized its strategic focus on content and digital platforms, with strong engagement reported for its Global TV app and STACKTV, despite the broader economic uncertainties impacting advertising decisions.

Corus Entertainment Financial Statement Overview

Summary
Corus Entertainment faces significant challenges with declining revenue and profitability, coupled with a highly leveraged balance sheet and negative equity. While cash flows remain positive, they are insufficient to offset the broader financial concerns. The company must address its profitability and leverage issues to stabilize and improve its financial health.
Income Statement
40
Negative
Corus Entertainment's TTM revenue decreased by 8.34% compared to the previous year, indicating a declining revenue trend. The gross profit margin stands at 54.00%, suggesting strong cost management despite decreased revenue. However, the net profit margin is negative at -6.61%, reflecting ongoing profitability challenges. The EBIT margin is 8.21%, and the EBITDA margin is 54.97%, indicating that the company benefits from strong EBITDA performance, but high depreciation and amortization expenses are impacting net income.
Balance Sheet
35
Negative
The company's balance sheet shows a negative stockholders' equity, highlighting significant financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, indicating high leverage and financial risk. The equity ratio is also negative, suggesting that liabilities exceed assets. These factors point to a concerning financial position that requires careful management to avoid solvency issues.
Cash Flow
50
Neutral
Operating cash flow for the TTM is positive, but has decreased significantly from the previous year. Free cash flow remains positive, indicating some capacity for investment and debt service. The free cash flow to net income ratio is negative due to negative net income, showing that while cash generation is stable, profitability remains an issue. The company should focus on improving cash flows relative to earnings to ensure long-term sustainability.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.16B1.27B1.51B1.60B1.54B1.51B
Gross Profit628.92M740.50M839.33M971.36M1.00B965.86M
EBITDA640.21M-236.59M401.30M655.86M1.03B230.23M
Net Income-76.98M-772.64M-428.72M-232.24M172.55M-607.71M
Balance Sheet
Total Assets1.70B1.49B2.75B3.50B3.86B3.97B
Cash, Cash Equivalents and Short-Term Investments81.86M82.42M56.16M54.91M43.69M45.90M
Total Debt1.08B1.17B1.22B1.40B1.49B1.66B
Total Liabilities2.10B1.83B2.29B2.60B2.64B2.92B
Stockholders Equity-439.08M-465.40M317.75M752.04M1.07B899.82M
Cash Flow
Free Cash Flow32.38M111.53M106.03M194.62M244.65M293.95M
Operating Cash Flow47.12M130.66M122.67M216.84M274.49M313.27M
Investing Cash Flow-11.44M-29.55M125.27M25.17M-29.53M-19.00M
Financing Cash Flow-21.03M-73.64M-246.69M-230.78M-247.18M-330.94M

Corus Entertainment Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.10
Price Trends
50DMA
0.10
Negative
100DMA
0.10
Negative
200DMA
0.10
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.46
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJR.B, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CJR.B.

Corus Entertainment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$41.49B-2.54-10.68%3.99%2.74%-43.64%
42
Neutral
C$18.95M175.81%-13.09%88.95%
C$4.69M2.4732.98%
C$148.08M
C$3.66M-816.77%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CJR.B
Corus Entertainment
0.10
>-0.01
-9.52%
TSE:FP
FP Newspapers
0.68
0.15
28.30%
TSE:PNC.A
Postmedia Ntwrk C J
1.52
0.18
13.43%
TSE:SAT
Asian Television Network International
0.15
0.03
25.00%

Corus Entertainment Corporate Events

Business Operations and StrategyFinancial Disclosures
Corus Entertainment Reports Third Quarter Financial Results Amid Industry Challenges
Negative
Jun 26, 2025

Corus Entertainment reported a decrease in consolidated revenue by 10% for the third quarter and 11% for the year-to-date, with a net loss attributable to shareholders of $7.3 million for the quarter. Despite these financial challenges, the company is making progress in reducing its cost base and has secured a strong lineup of new shows for the upcoming broadcast season. Corus is focusing on targeted growth opportunities and implementing cost-saving initiatives to navigate the challenging industry landscape.

The most recent analyst rating on ($TSE:CJR.B) stock is a Sell with a C$0.24 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Corus Entertainment Appoints John Gossling as CEO Amid Leadership Restructuring
Positive
Jun 4, 2025

Corus Entertainment Inc. has announced significant changes in its leadership team, appointing John Gossling as the new Chief Executive Officer. Previously serving as Co-CEO and CFO, Gossling brings over 25 years of experience in the media and communications industry. The company is transitioning back to a single CEO structure to better navigate the evolving industry landscape and stabilize its capital and debt structure. Additionally, the company has expanded the roles of several senior executives, including Jennifer Abrams and Jennifer Lee, to strengthen its focus on content, marketing, and operational functions. These changes are expected to position Corus for future opportunities and long-term growth.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025