Investment Thesis

Corus Entertainment () (TSX: CJR.B) delivered 11.1% TV advertising revenue growth in Q2 F2019 thanks to the company’s dynamic ad insertion technology. This growth rate was much higher than Q1 F2019’s growth rate of 3.6%. Looking forward, management indicated that they expect mid-single-digit advertising growth in the upcoming quarter. In Q2 F2019, Corus continued its path to deleverage its balance sheet and has improved its net debt to EBITDA ratio down to 3.05x from Q1 F2019’s 3.15x. The company continues to trade at a significant discount to its peers and is poised to expand its valuation multiple if it can consistently deliver advertising revenue growth in the next few quarters. Nevertheless, its business continues to face structural decline. We believe this stock

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