Mr. Doug Murphy reports

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2024 SECOND QUARTER RESULTS

Corus Entertainment Inc. has released its second quarter financial results today.

"We delivered a strong quarter of free cash flow generation that was directed towards reduction of our term loan facility as we maintained focus on streamlining our operating model," said Doug Murphy, president and chief executive officer. "Television advertising revenue for the second quarter was in line with our expectations. Importantly, premium scripted content returned to our networks and platforms in February with promising early audience results. That said, visibility in the advertising market remains limited despite the normalization of our program supply. Demand creation is our priority to monetize these audiences while we concurrently deploy a disciplined focus on expense reduction to improve operational efficiency."

Operational highlights

Corus advanced its strategic priorities on multiple fronts. The company launched its winter/spring 2024 schedule for Global TV on traditional and streaming platforms, continued to implement cost-savings initiatives and made bank debt repayments. The company continues to navigate an uncertain macroeconomic environment:

• Global launches its winter/spring 2024 programming. Global Television's core prime-time audiences increased following the return of blockbuster franchises NCIS and FBI, hit dramas CSI: Vegas and 9-1-1, acclaimed comedies Abbott Elementary and Ghosts, season 46 of Survivor, fan favourite Big Brother Canada, and the introduction of new drama Elsbeth.
• HGTV Canada and MEM (McGillivray Entertainment Media) announced the greenlight of Renovation Resort. HGTV Canada's Scott McGillivray and Brian Baeumler return as co-hosts and judges in season 2 of Renovation Resort, distributed by Corus Studios. The series successfully debuted as the No. 1 Canadian original series on specialty television in spring 2023.

Financial highlights:

• Free cash flow of $32.9-million in Q2 and $56.6-million year-to-date compared with $28.4-million and $49.2-million year-to-date, respectively, in the same comparable prior-year periods. The increase in free cash flow for the second quarter and the year-to-date is mainly attributable to higher cash provided by operating activities.
• Net debt to segment profit was 3.55 times as at Feb. 29, 2024. Pro forma net debt to segment profit was 3.62 times at Feb. 29, 2024, unchanged from Aug. 31, 2023, and down from 3.67 times at Nov. 30, 2023.
• In the second quarter of fiscal 2024, Corus paid down $21.5-million of debt and $31.5-million year-to-date.
• As of Feb. 29, 2024, the company had $61.5-million of cash and cash equivalents, and $236.4-million available to be drawn under its $300-million revolving facility.

The unaudited interim condensed consolidated financial statements, and accompanying notes for the three and six months ended Feb. 29, 2024, and management's discussion and analysis, are available on the company's website in the investor relations section and under the company's SEDAR+ profile.

A conference call with Corus senior management is scheduled for April 12, 2024, at 8 a.m. Eastern Time. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please register on-line and be connected to the conference call automatically. You can also dial direct to be entered into the call by an operator. The dial-in number for the conference call for local and international callers is 1-416-764-8650 and for North America is 1-888-664-6383. This call will be archived and available for replay in the investor relations section of the Corus website beginning April 12, 2024, at 11 a.m. ET or accessible by telephone until April 19, 2024, at 1-888-390-0541 (toll-free North America) or 416-764-8677 (local or international), using replay code 674162 followed by the pound key. More information can be found on the Corus Entertainment website in the investor relations section.

Outlook

In the third quarter, delivery of new episodes of scripted programming are expected to resume closer to normal levels following the settlement of the labour actions by the United States writers and actors guilds. However, lingering impacts from the lengthy disruption of advertising markets due to the strikes, as well as continuing macroeconomic uncertainty and the competitive environment, are expected to lower demand for linear advertising. As such, the company expects year-over-year declines in television advertising revenue in the third quarter of fiscal 2024 in the range of 10 per cent to 15 per cent. Amortization of TV program rights is expected to decline in the quarter by a similar range on a year-over-year basis and the company will continue with its implementation of additional cost-reduction initiatives. While the company continues to expect improvement in the macroeconomic environment in the medium term, visibility remains limited at this time.

About Corus Entertainment Inc.

Corus Entertainment is a leading media and content company that develops and delivers high-quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompasses 33 specialty television services, 39 radio stations, 15 conventional television stations, digital and streaming platforms, and technology and media services. Corus is an internationally renowned content creator and distributor through Nelvana, a world-class animation studio expert in all formats, and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The company also owns full-service social digital agency so.da, lifestyle entertainment company Kin Canada and children's book publishing house Kids Can Press. Corus's roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, Magnolia Network Canada, The History Channel, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Global News, Q107, Country 105 and CFOX, along with streaming platforms StackTV, Teletoon+, the Global TV app and Curiouscast. Corus is the domestic advertising representative and an original content partner for Pluto TV, a Paramount company, which is the leading free ad-supported streaming television (FAST) service.

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