Profitability rises despite revenue decline as Corus navigates advertising slump

Corus Entertainment Inc. reported a significant jump in profit during this year’s second quarter, a win for the otherwise financially troubled broadcaster. While revenue fell by 15 per cent to $230 million from the previous year’s $270 million, the company achieved a 72 per cent increase in segment profit for the quarter, reaching $30 million. Corus pointed to aggressive cost-cutting measures, timing of programming schedules, and fewer one-time costs compared to Q2 2025 as the main reasons for the increase. The revenue drop, meanwhile, was driven by a 21 per cent decrease in TV advertising and a 12 per cent decline in subscriber revenue. “Our results were impacted by lower demand for linear TV in the broader advertising market, persistent macroeconomic factors, and… by the temporary disruptions to February's programming schedules and advertising investments due to the Olympics,” said Doug Spence, vice president of finance, during an investor call on April 10. This was “more than offset,” he added, by a 21 per cent decrease in the direct cost of sales, and general and administrative expenses. The company said the lower expenses stemmed from things including reduced spending on programming rights, employee layoffs, reduced salaries and benefits, and lower bad debts. Corus’ television segment saw $212.4 million in revenue, a decline of 16 per cent year-over-year. However, profit for the segment grew 48 per cent, almost reaching $33.5 million. Radio also saw similar results, with revenue dropping four per cent to $17.75 million, and profit climbing 33 per cent to $1.9 million. "Despite continued industry and macroeconomic pressures on linear advertising demand, we are making meaningful progress on initiatives that build on the strength of our leading brands, content, and client offerings,” said Corus CEO John Gossling in a statement. “We are also pleased to be moving expeditiously into the next phase of our recapitalization transaction, which will strengthen our financial foundation and support a sustainable business strategy.” Last month the company won approval from the Ontario Superior Court of Justice to restructure its debt and share structure through a recapitalization transaction. "This marks an important milestone towards strengthening Corus' financial foundation and positioning the company for the future," said Gossling during the investor call. “We are now moving through the remaining steps, including working to obtain regulatory and stock exchange approvals.” The company is “not yet in a position to provide an estimated closing date,” he noted, saying that the timeline will “depend largely on the regulatory process.” Corus continued its calls for urgency on the regulatory front, with chief administrative officer Jennifer Lee stating that the company is effectively in “wait mode” on several key developments. The company is still waiting for a final decision from the Federal Court of Appeal regarding the ongoing fight between Canadian broadcasters and foreign streamers over the Online Streaming Act. Lee noted that Corus is seeking a final decision that “will allow us to receive our full amount of the Independent Local News Fund, or ILNF” Last June, while the court heard from each side of the streaming act dispute, the CRTC granted Corus' Global News TV stations eligibility for ILNF funding. Lawyers for the Canadian Association of Broadcasters told the court at the time that this will put even greater strain on funding recipients, as there will be less money to go around, and urged the court to quickly decide whether streamers will have to contribute. Corus also continued its pleas for “smarter” broadcasting rules “that promote fair competition,” referring to the CRTC’s ongoing review of the Canadian broadcasting system. “Like many others, we are looking forward to refreshed rules governing broadcasting distribution, spending on Canadian programs,” said Lee. “We continue to advocate for urgency on all of that work.” news@thewirereport.ca

Profitability rises despite revenue decline as Corus navigates advertising slump

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By Wire Report Staff
|April 10, 2026

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Profitability rises despite revenue decline as Corus navigates advertising slump

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Broadcast |
By Wire Report Staff
|April 10, 2026