TORONTO, June 7, 2024
/CNW/ - Corus Entertainment Inc. (TSX: CJR.B) ("Corus" or "the
Company") is providing an update today that it has been informed by
Warner Bros. Discovery, Inc. that some of its programming and
trademark output arrangements will not be renewed upon their expiry
on December 31, 2024. This affects
content on certain Corus-operated specialty channels. Corus does
not currently expect changes to the programming of the channels
until 2025.
"I want to reinforce Corus' intent to continue operating the
country's largest and most widely distributed lifestyle channels
based on the strength of top-rated Canadian programs and alternate
foreign content supply," said Troy
Reeb, EVP, Networks and Content of Corus. "We have an
exceptional fall schedule coming in September and a vast amount of
Canadian and U.S. content to carry us into the future."
"This is an unfortunate example of inequitable structural
relationships in the Canadian media and telecom industries,
particularly affecting independent broadcasters like Corus," added
Doug Murphy, President and Chief
Executive Officer of Corus. "It highlights the urgent need for
regulatory reform, including to rules affecting how market-dominant
players interact with suppliers and competitors. Corus intends to
explore all potential remedies. We look forward to adapting and
advancing our strategies while we pursue new opportunities through
our other content suppliers."
Corus is Canada's largest
independent media company, delivering diverse entertainment options
and award-winning news across its 15 Global television stations, 33
specialty channels, 39 radio stations, and streaming services
including STACKTV and the Global TV app.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information and
should be read subject to the following cautionary language:
To the extent any statements made in this press release contain
information that is not historical, these statements are
forward-looking statements and may be forward-looking information
within the meaning of applicable securities laws (collectively,
"forward-looking information"). This forward-looking information
relates to, among other things, the Company's objectives, goals,
strategies, targets, intentions, plans, estimates and outlook,
including the adoption and anticipated impact of the Company's
strategic plan, advertising and expectations of advertising trends
for fiscal 2024, subscriber revenue and anticipated subscription
trends, distribution, production and other revenue, the Company's
dividend policy and the payment of future dividends; the Company's
leverage target; the Company's ability to manage retention and
reputation risks related to its on-air talent; expectations
regarding financial performance, including capital allocation
strategy and capital structure management, operating costs and
tariffs, taxes and fees, and can generally be identified by the use
of words such as "believe", "anticipate", "expect", "intend",
"plan", "will", "may" or the negatives of these terms and other
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances may be considered forward-looking
information.
Although Corus believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves assumptions, risks and uncertainties and undue reliance
should not be placed on such statements. Certain material factors
or assumptions are applied with respect to the forward-looking
information, including without limitation, factors and assumptions
regarding the general market conditions and general outlook for the
industry including: the impact of recessionary conditions and
continuing supply chain constraints; the potential impact of new
competition and industry mergers and acquisitions; changes to
applicable tax, licensing and regulatory regimes; inflation and
interest rates, stability of the advertising, subscription,
production and distribution markets; changes to key suppliers or
clients; operating and capital costs and tariffs, taxes and fees,
the Company's ability to source, produce or sell desirable content
and the Company's capital and operating results being consistent
with its expectations. Actual results may differ materially from
those expressed or implied in such information.
Important factors that could cause actual results to differ
materially from these expectations include, among other things: the
Company's ability to attract, retain and manage fluctuations in
advertising revenue; the Company's ability to maintain
relationships with key suppliers and clients and on anticipated
financial terms and conditions; audience acceptance of the
Company's television programs and cable networks; the Company's
ability to manage retention and reputation risks related to its
on-air talent; the Company's ability to recoup production costs;
the availability of tax credits; the availability of expected news,
production and related credits, programs and funding; the existence
of co-production treaties; the Company's ability to compete in any
of the industries in which it does business including with
competitors which may not be regulated in the same way or to the
same degree; the business and strategic opportunities (or lack
thereof) that may be presented to and pursued by the Company;
conditions in the entertainment, information and communications
industries and technological developments therein; changes in laws
or regulations or the interpretation or application of those laws
and regulations including statements, decisions or positions by
applicable regulators including, without limitation, the Canadian
Radio-television and Telecommunications Commission ("CRTC"),
Canadian Heritage and Innovation, Science and Economic Development
Canada ("ISED"); changes to licensing status or conditions;
unanticipated or un-mitigatable programming costs; the Company's
ability to integrate and realize anticipated benefits from its
acquisitions and to effectively manage its growth; the Company's
ability to successfully defend itself against litigation matters
and complaints; failure to meet covenants under the Company's
senior credit facility, senior unsecured notes or other instruments
or facilities; epidemics, pandemics or other public health and
safety crises in Canada and
globally; physical and operational changes to the Company's key
facilities and infrastructure; cybersecurity threats or incidents
to the Company or its key suppliers and vendors; and changes in
accounting standards.
Additional information about these factors and about the
material assumptions underlying any forward-looking information may
be found under the heading "Risks and Uncertainties" in the
Company's Management's Discussion and Analysis for the year ended
August 31, 2023 and under the heading
"Risk Factors" in the Company's Annual Information Form for the
year ended August 31, 2023. Corus
cautions that the foregoing list of important assumptions and
factors that may affect future results is not exhaustive. When
relying on the Company's forward-looking information to make
decisions with respect to Corus, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Unless otherwise specified, all
forward-looking information in this document speaks as of the date
of this document and may be updated or amended from time to time.
Except as otherwise required by applicable securities laws, Corus
disclaims any intention or obligation to publicly update or revise
any forward-looking information whether as a result of new
information, events or circumstances that arise after the date
thereof or otherwise.
SOURCE Corus Entertainment Inc (IR Group)