Corus Entertainment Inc. reported a net loss of $36.5 million for its fiscal third quarter, as revenue tumbled 26 per cent compared with the same period last year, the company said Thursday.
Revenue and advertising slump
Revenue for the quarter ended May 31, 2026, fell to $287 million from $388 million a year earlier, driven largely by a sharp drop in advertising revenue. Advertising revenue, which accounts for the bulk of Corus's sales, declined 28 per cent to $198 million, as traditional television audiences continued to shrink and advertisers shifted spending to digital platforms.
Subscription revenue also fell, down 12 per cent to $72 million, as cord-cutting accelerated across Canada. The company's radio and other segments contributed $17 million, down from $24 million last year.
Cost-cutting measures
Corus has been implementing cost-cutting initiatives, including layoffs and programming reductions, to offset the revenue decline. Operating expenses decreased 15 per cent to $240 million, but were not enough to prevent the loss. The company recorded a $12 million impairment charge related to its television assets.
“We are taking decisive action to align our cost structure with the current revenue environment,” said Corus CEO Doug Murphy in a statement. “While the advertising market remains challenging, we are focused on executing our strategy to stabilize the business and position it for future growth.”
Debt and outlook
Corus's long-term debt stood at $1.2 billion as of May 31, down from $1.4 billion a year ago. The company said it has sufficient liquidity to meet its obligations, including a $250 million revolving credit facility.
For the nine months ended May 31, Corus reported a net loss of $94 million, compared with a loss of $12 million in the same period last year. Revenue for the nine months was $1.1 billion, down from $1.3 billion.
Analysts expect the advertising slump to continue in the near term, as cord-cutting and competition from digital giants like Google and Meta intensify. Corus shares closed at $4.32 on the Toronto Stock Exchange, down 8 per cent on the day.
