From a media release:
Corus Entertainment Makes Strategic Decision to Deepen Focus on Core National Media Brands and Exit Regional Pay TV Business
Corus Entertainment Inc. announced today that, as part of its plan to strategically invest in and further optimize its core national media brands for future growth, it intends to discontinue its Pay TV business in Western Canada, which includes Movie Central, Encore Avenue and HBO Canada.
“After an extensive strategic review of our business, we made the decision to strengthen our focus on one of our biggest growth opportunities, our powerful national media brands targeted to kids, women and families,” said Doug Murphy, President and Chief Executive Officer, Corus Entertainment. “Therefore, we have decided to exit our regional Pay TV business concurrent with Bell Media’s plans to expand their premium offering nationally. We have always believed that the best way to serve Pay TV subscribers is through a national operator and brand.”
To ensure continuity for subscribers, Corus will continue to operate Movie Central, Encore Avenue and HBO Canada until Bell Media’s national Pay TV service is available in Western Canada. Added Doug Murphy, “We value our long and successful partnership with Bell and wish them every success as they extend their Pay TV offering to serve all Canadians.”
Corus will receive cash consideration of $211 million Cdn from Bell Media to assist in their national expansion, valued at an adjusted F2015 EBITDA1 multiple for Pay TV of 6.7x. The cash will be used to invest in the advancement of Corus’ strategic priorities and retire debt.
1 Segment profit (EBITDA) does not have a standardized meaning prescribed by IFRS. The Company reports on segment profit because it is a key measure used to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2015 Report to Shareholders. Corus Entertainment Inc. reports in Canadian dollars.
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