CJREF - Corus Entertainment: Back To Back Quarter Of Positive Advertising Revenue Growth Warrants Higher Valuation
Investment Thesis
Corus Entertainment (CJREF) (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