Mr. Doug Murphy reports

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2022 FOURTH QUARTER AND YEAR END RESULTS

Corus Entertainment Inc. released its fourth quarter and year-end financial results today.

"In Q4, we experienced meaningfully lower financial results, given the impacts of an uncertain economic environment on advertising demand," said Doug Murphy, president and chief executive officer, Corus Entertainment. "Despite these cross-currents in the advertising market, our portfolio of businesses is delivering impressive subscriber revenue growth and increased international content sales. In addition, the ongoing expansion of our premium digital video business, with STACKTV, Teletoon+, the Global TV App and the upcoming launch of Pluto TV, underscores our progress in maximizing multiplatform television opportunities. We are taking appropriate actions to tightly manage our expenses while maintaining a disciplined focus on capital allocation, shareholder yield and the ongoing execution of our strategic plan and priorities."

Operational highlights

Corus advanced its strategic priorities on multiple fronts. The company expanded its premium digital video offerings for subscribers and advertisers, set up its successful fall programming lineup for Global TV and Corus's portfolio of specialty networks, and expanded the scope of its content business. The company advanced its capital allocation priorities through investments in the business to support future growth opportunities, maintaining dividends, and making bank debt repayments and share repurchases.

• Corus and Paramount Global to launch Pluto TV. Pluto TV, the world's leading FAST (free ad-supported streaming television) service, will launch in Canada on Dec. 1, 2022. Corus's leading ad sales capabilities will be combined with Pluto TV's best-in- class platform and technology, serving compelling content to audiences and providing a differentiated model for advertisers. In addition, viewers will have access to a selection of Canadian series and shows from Corus's portfolio, spanning a variety of genres. The service will launch with more than 100 live channels and over 20,000 hours of content, available on all major platforms including web, mobile and connected TVs (television).
• Corus launched Teletoon+. Corus launched its new premium kids and family streaming service. Teletoon+ is available to subscribers through Amazon Prime Video Channels, Bell Fibe TV App or Rivertv. The company's previous kids and family streaming service, Nick+, was transitioned to Teletoon+ effective Sept. 1, 2022.

Financial highlights:

• Free cash flow of $44.7-million in Q4 and $239.6-million for the year compared with $35.2-million and $251.9-million, respectively, in the same comparable prior year periods. The increase in free cash flow in the fourth quarter is attributable to an increase in cash provided by operating activities of $5.7-million, as well as a decrease of $9.7-million in cash used in investing activities. The decrease in free cash flow for the year ended Aug. 31, 2022, is mainly attributable to a decrease in cash provided by operating activities of $57.7-million, offset by an increase in cash provided by investing activities, as a result of a $43.5-million venture fund distribution.
• Net debt to segment profit was 3.02 times at Aug. 31, 2022, up from 2.76 times at Aug. 31, 2022. Although net debt decreased from the repayment of bank loans, partially offset by the issuance of senior unsecured notes due 2030 and production financing for an acquired subsidiary, the main driver to the increase in this ratio is the decrease of segment profit for the most recent four quarters.
• In the fourth quarter, the company purchased 2,774,300 of its Class B non-voting participating shares under a normal course issuer bid at an average acquisition price of $3.89.
• As of Aug. 31, 2022, the company had $54.9-million of cash and cash equivalents and the committed $300-million revolving facility that remains undrawn.
• The macroeconomic environment became increasingly uncertain in the fourth quarter of fiscal 2022, characterized by persistently high inflation and continuing supply chain constraints, and as a result advertising demand and spending across the North American television industry contracted meaningfully. In addition, there was a significant decline in the company's share price from Aug. 31, 2022, which resulted in the company's carrying value being greater than its current market enterprise value. As the television operating segment had actual results that fell short of previous estimates and an outlook that is less robust, a non-cash goodwill impairment charge of $350-million was recorded in the television operating segment.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three months and year ended Aug. 31, 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.

A conference call with Corus senior management is scheduled for Oct. 21, 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 647-794-4605 and for North America is 888-394-8218. More information can be found on the Corus Entertainment website in the investor relations section.

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 encompass 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.ca, Q107, Country 105 and CFOX, along with broadly distributed Canadian streaming platforms STACKTV, Teletoon+, the Global TV App and Curiouscast.

We seek Safe Harbor.