Source : Globe & Mail

The Canadian Press

TORONTO — Corus Entertainment Inc. [CJR.B-T] is hiking its annual dividend 20 per cent after first-quarter profit rose 7 per cent to $39.4-million, led by continued revenue growth from its broadcasting businesses.

At the new rate, the dividend on an annual basis for Class A and Class B shares will be $1.19 and $1.20, respectively.

The monthly dividend will rise to 9.917 cents and 10 cents, respectively, effective in February.

Toronto-based Corus said its profit for the quarter ended Nov. 30 amounted to 91 cents a diluted share, up from a year-ago $36.7-million or 85 cents a year earlier.

Analysts' consensus forecast was for earnings of $1.01, before one-time items, according to Thomson Financial.

“We executed well on our operating strategies and delivered solid increases in revenues and segment profit,” CEO John Cassaday said in a release.

“In Q1, we invested in programming and marketing to continue our growth momentum. These solid results were in line with our expectations and our continued confidence in our business has enabled us to once again substantially increase our dividend. We are also pleased to have announced our intention to extend our share buyback program.”

Revenues were $214.8-million, up three per cent from $209.2-million.

Corus Television contributed quarterly revenues of $126.1-million, up 3 per cent, led by specialty advertising growth of two per cent and subscriber revenue growth of 4 per cent.

Corus Radio revenues were $79.5-million, up 5 per cent. But Corus Content revenues were $9.6-million, down 19 per cent.

Corus has continued to buy back shares under its normal-course issuer bid. In the first quarter, the company purchased for cancellation 659,900 Class B non-voting shares at an average price of $49.01 per share.

In December, a further 125,300 shares were purchased and cancelled.

Corus is a major provider of specialty television and radio, with additional assets in pay TV, advertising and digital audio services, TV broadcasting, children's book publishing and children's animation.

The company's brands include YTV, Treehouse, WNetwork, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107.

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