Corus Entertainment Inc. Class B · TSX:CORS
Corus Entertainment Inc. Class B — Shareholder Meeting (2002)
22 slides from Corus Entertainment Inc. Class B's shareholder meeting presentation, 2002
Slide 1: Financial Highlights: The Year in Review
Financial Highlights The Year in Review
Slide 2: Safe Harbor Disclosure
“Safe Harbor” Disclosure Certain statements included in this presentation constitute “forward- looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which c
Slide 3: Our operating performance was great… our share performance was not
Our operating performance was great… our share performance was not
Slide 4: Overview of the market
Overview of the market • 2002 was a tumultuous year • economic impact of the events of Sept. 11th • capital markets impacted by an erosion of investor confidence – Enron, Worldcom • Global ad recession – especially in Europe • Sector uncertainty fuelled by Vivendi and TW/AOL
Slide 5: Response to conditions
Response to conditions Aggressive three-point plan • Reduce our debt by $100 - $150 million • Accelerate our pace to achieve consolidated EBITDA margins of 30% • Focus on rationalizing our core assets
Slide 6: We delivered on the plan…
We delivered on the plan… • Reduced debt from $800 million in Q1 to $630 million at year-end • Improved our industry leading operating margins in television and radio • Significantly reduced headcount and restructured our operations for improved efficiency and effectiveness • Disposed of non-core as
Slide 7: …in difficult market conditions for content
…in difficult market conditions for content • Worst market conditions in 30 years • Supply of product was at an all-time high • Demand dropped with a reduction in the number of buyers • Revenue per episode dropped 30%
Slide 8: Nelvana write-down
Nelvana write-down • Despite record levels of new productions • Despite a strengthened competitive position • Despite improved EBITDA for our production, distribution and merchandising divisions
Slide 9: Market Focus
Market Focus • Negative reaction to Nelvana - Share price down by 30% • Positive reaction to debt issue - Notes continue to trade at a premium
Slide 10: Corus share price performance vs. Cdn. peers
Corus share price performance vs. Cdn. peers 15% 10% 5% Corus CHUM Astral 0% Alliance -5% -10% -15% -20% -25% -30% -35% Aug. 31 2002 vs. 2001
Slide 11: Corus share price performance vs. U.S. peers
Corus share price performance vs. U.S. peers 0% Corus Disney AOL Time Warner Viacom Clear Channel Emmis -10% -20% -30% -40% -50% -60% -70% Aug. 31 2002 vs. 2001
Slide 12: Operating performance review
Operating performance review Our television assets once again delivered excellent results Revenue $284 million +24% EBITDA $90 million +22% Margin 31.6%
Slide 13: Television peer comparison
Television peer comparison Television margins are superior to CHUM and Astral CORUS ASTRAL CHUM EBITDA $90m $89m $27m MARGIN 31.6% 27.9% 7.5% Source: Annual Reports
Slide 14: Television peer comparison
Television peer comparison Television also measures up on revenue and EBITDA growth CORUS ASTRAL CHUM REVENUE +24% +19% +22% EBITDA +22% +32% -16% Source: Annual Reports
Slide 15: Television achievements
Television achievements • Relaunched WTN as W – Audience numbers up 50% • Relaunched Pay TV business – Subscribers up 22% • Launched 5 digital channels • Acquired a 50% interest in Locomotion • Increased our interest in Telelatino to 50.5%
Slide 16: Operating performance
Operating performance The consolidation and relaunch of our Radio stations are also delivering improved results Revenue $211 million +10% EBITDA $53 million +10% Margin 25%
Slide 17: Radio peer comparison
Radio peer comparison Our radio margins are superior to both CHUM and Astral but not as good as some of the U.S. companies CORU ROGERS ASTRAL CHUM EMMIS* CLEAR CHANNEL* S EBITDA $53m $34M $8m $11m $114m $1.6b MARGIN 25% 21% 17% 10% 44% 41% *U.S. dollars Source: Annual Reports/Public Documents
Slide 18: Radio peer comparison
Radio peer comparison Radio also performed well on revenue and EBITDA growth CORU ASTRAL CHUM EMMIS* CLEAR CHANNEL* S REVENUE +10% +2.7% +3.0% +7.1% +42.4% EBITDA +10% -3.2% -28.0% +6.6% +29.6 Source: Annual Reports/Public Documents
Slide 19: Radio achievements
Radio achievements • Reduced annual operating costs • Focus on cost control • Consolidation of management – Established MBO and strategic plan process for performance based management – System wide programming and market evaluation – Rationalized assets – Created Corus Sales University
Slide 20: Difficult year for Content…
Difficult year for Content… • $350m write-down over the year • Revenue per episode dropped 30% • Collapse of the German market • Consolidation of Canadian book retailers
Slide 21: …but some successes
…but some successes • Positive outlook for merchandising – Beyblade and Rescue Heroes • Increase in episode production • Lower cost of production • Maintained strong U.S. presence – 24 series on air in the States • 30% increase in library sales • Disposition of Klutz on favourable terms
Slide 22: Impressive three-year growth
Impressive three-year growth $,’000’ s 700 652 600 557 500 400 Revenue EBITDA* 300 EBITDA 229 200 162 CAGR 40 100 Revenue – 59% 124 116 49 65 EBITDA – 47% 0 1999 2000 2001 2002 * Excluding film investment write-down of $40 million