April 5 (Reuters) - Corus Entertainment Inc CJRb.TO beat analysts' estimates for quarterly profit on Friday, benefiting from the Canadian media company's efforts to bolster its television business, sending its shares up 6 percent.
The Toronto-based company has been spending heavily to develop original content to attract the so-called cord-cutters who are shunning traditional cable bundle and opting for cheaper online streaming services such as Netflix Inc NFLX.O .
Advertising revenue increased 11 percent in Corus' television business in the second quarter ended Feb. 28, fueling a 5 percent rise in the unit's revenue to C$353.5 million ($264.5 million).
"We are advancing for own more content strategy through Nelvana and Corus Studios," Chief Executive Officer Douglas Murphy said on a post-earnings call with analysts.
"Our owned content investments drive audiences on our networks and diversify our revenues through international content sales."
Corus expects mid-single-digit percentage increase in television advertising revenue for the third quarter.
The company's online push also paid off, with CEO Murphy highlighting a 22 percent jump in average monthly unique visitors to its Global News service on globalnews.ca.
But the company's radio segment revenue remained under pressure, declining almost 8 percent in the quarter, with automotive advertising contributing the most to the fall.
Excluding items, Corus earned 7 Canadian cents per share, beating analysts' average estimate of 5 Canadian cents, according to IBES data from Refinitiv.
Net income attributable to shareholders fell to C$6.3 million, or 3 Canadian cents per share, in the three months quarter ended Feb. 28 from C$40 million, or 19 Canadian cents per share, a year earlier. rose 4 percent to C$384.1 million, topping estimates of C$373.80 million.
The company's shares trimmed some gains to trade up about 5 percent at C$6.75 on the Toronto Stock Exchange. The shares have risen about 35 percent since the beginning of the year.
($1 = 1.3366 Canadian dollars)