Corus Entertainment Inc. (TSX:CJR.B) is a Toronto-based media company that owns Global Television Network, as well as a variety of specialty television networks. The stock has increased 3.5% in 2017 and 6.3% year-over-year. Corus Entertainment was broke off from Shaw Communications Inc. in 1999 to form the media company. Corus has completed a number of acquisitions in recent years, including the acquisition of the Canadian Disney Channel subsidiary in 2015, as well as Shaw Media in 2016 for $2.65 billion.
The company released its third quarter results on June 27. Consolidated revenues were up 28% to $461.6 million compared to $360.8 million in Q3 2016, it also posted profit growth of 35% to $175.8 million. Net income was $66.7 million or $0.33 per share in the third quarter. Corus has seen a significant boost from Shaw Media’s operating results being fully consolidated.
Corus Entertainment saw its television segment post significant gains but radio was either down marginally or flat. Though it has been powered by recent acquisitions there is concern about legacy television for investors. The rise of streaming services like Netflix, Inc. and even Amazon.com, Inc. threaten the market share of traditional television services.
Regardless, Corus Entertainment still offers a dividend of $0.09 per share representing a dividend yield of 8.7%. Income investors can thus justify owning this company on the basis of its dividend yield but should be aware of the growth limits in the conventional television medium.