TORONTO _ Shares of Corus Entertainment Inc. soared in trading Thursday after the company beat expectations as it reported a second-quarter profit of $40 million.
The shares were up about 20 per cent in early afternoon trading on the Toronto Stock Exchange after the television and radio broadcaster says the profit amounted to 19 cents per diluted share for the quarter ended Feb. 28.
That compared with a profit of $24.9 million, or 12 cents per diluted share, a year ago.
On an adjusted basis, Corus says it earned 20 cents per share, up from 13 cents per share a year ago. Analysts on average had expected an adjusted profit of 11 cents per share, according to Thomson Reuters.
“We are pleased with this quarter’s results and the steady progress we are making against our strategic plan,” Corus chief executive Doug Murphy said in a statement.
“Moving forward, Corus remains focused on maximizing and monetizing our high-value audiences, and we have a solid roadmap in place to position the organization for success over time within a changing media landscape.”
Revenue in the second quarter totalled $369.5 million, up from $368.2 million a year ago.
The increase came as television revenue totalled $336.2 million, up from $335.9 million a year ago, as lower advertising revenue was offset by gains in merchandising, distribution and other revenues.
Radio revenue amounted to $33.2 million, up from $32.3 million.
Shares in the company were up $1.20 at $7.19 in early afternoon trading. Despite the gains in the stock on Thursday, Corus shares remain well off their 52-week high of $14.10.
The stock plunged in January after the company reported disappointing first-quarter results due to a weak television advertising market.
Corus owns radio stations as well as conventional and specialty television services across the country including Global Television.