Mr. Doug Murphy reports

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2022 SECOND QUARTER RESULTS

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

"Corus has delivered modest consolidated revenue growth in a challenging macroeconomic environment in the second quarter," said Doug Murphy, president and chief executive officer. "Our Q2 results reflect strong subscriber revenue gains and a recovery in our radio business, offset primarily by lower timing-related content licensing revenues. We delivered strong free cash flow and strengthened our capital structure, providing a solid foundation for our growth initiatives in the years to come. At the midway point of our year, Corus is well positioned to benefit from the disciplined execution of our strategic plan and priorities as the economy reopens."

Operational highlights

The company advanced its strategic priorities on multiple fronts. Corus expanded its digital and traditional video advertising offerings; new content development partnerships and international sales were secured through Corus's content business and the company significantly increased its financial flexibility with the issuance of senior unsecured notes and the extension of its credit facilities:

• On Feb. 9, 2022, the company announced the expansion of its premium, multichannel streaming service StackTV onto Rogers Ignite TV and Ignite SmartStream platforms. This marks the first time StackTV is available as a stand-alone streaming channels bundle through a traditional distribution partner. Corus also highlighted the addition of Lifetime to its suite of networks on StackTV.
• As of April 4, 2022, the company reached a new milestone of nearly 750,000 paying subscribers to its StackTV, Nick+ and other streaming platforms, an increase from more than 725,000 paying subscribers on Jan. 10, 2022.
• On March 1, 2022, the company announced the Canadian launch of Magnolia Network -- Chip and Joanna Gaines's joint media venture with Discovery Inc. The company exclusively debuted Magnolia Network on March 28, 2022, becoming the first broadcaster outside of the United States to launch the channel.
• On April 7, 2022, the company's Corus Studios announced its largest U.S. output deal ever with streaming platform Hulu. This new multiyear agreement consists of over 400 episodes of lifestyle, renovation, unscripted and crime content from Corus Studios, building on the previously announced sale to Hulu of over 200 episodes last year.

Financial highlights:

• Free cash flow of $88.4-million in Q2 and $168.4-million year to date compared with $89.7-million and $152.1-million year to date, respectively, in the same comparable prior-year periods. The decrease in free cash flow in the second quarter is attributable to a decrease in cash provided by operating activities, offset by a reduction in cash used in investing activities. The increase in free cash flow for the six months ended Feb. 28, 2022, is mainly attributable to a $43.5-million venture fund distribution, offset by a decrease in cash provided by operating activities of $25.9-million.
• On Feb. 28, 2022, the company issued $250-million in principal amount of 6.0 per cent senior unsecured notes due Feb. 28, 2030. The net proceeds therefrom were used to repay amounts under the company's term credit facility.
• Subsequent to the quarter, the company's credit agreement with a syndicate of banks was amended and restated effective March 18, 2022. The principal amendments effected extended the maturity dates for the term facility and bank revolving credit facility to March 18, 2027.
• Net debt to segment profit was 2.70 times at Feb. 28, 2022, down from 2.76 times at Aug. 31, 2021, principally due to the repayment of bank loans, net of notes issuance, in the current year of $70.2-million year to date, offset by the addition of $13.5-million in production financing for an acquired subsidiary.
• As of Feb. 28, 2022, the company had $95.5-million of cash and cash equivalents and the committed $300-million revolving facility that remains undrawn.

Corus Entertainment reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and six months ended Feb. 28, 2022, 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 8, 2022, at 8 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. The dial-in number for the conference call for local and international callers is 1-647-794-4605 and for North America is 1-888-204-4368. More information can be found on the Corus Entertainment website in the investor relations section.

COVID-19 update

Many provinces and territories have begun the gradual lifting of health restrictions related to COVID-19, which may see a phased return to on-site work across various sectors. Disruptions caused by imposition or removal of public health restrictions and rising COVID-19 infection rates, including labour shortages, employee absenteeism at the company or its clients and suppliers, changes in consumer demand, and supply chain shortages or disruptions, particularly in the retail, tourism and entertainment sectors, can negatively impact the company's operations and financial performance, including advertising revenue. There can be no certainty that current vaccination and public health measures can mitigate negative impacts caused by the COVID-19 pandemic on the company's business in the short to medium term.

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, a suite of digital and streaming assets, animation software, 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 innovative full-service social digital agency so.da, lifestyle entertainment company Kin Canada, leading 2-D animation software supplier Toon Boom 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, Globalnews, Q107, Country 105 and CFOX, along with broadly distributed Canadian streaming platforms StackTV, Nick+, the Global TV app and Curiouscast.

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