Ms. Heather Shaw reports
CORUS ENTERTAINMENT DECLARES DIVIDEND; UPDATES CAPITAL ALLOCATION POLICY;
CORUS DECLARES QUARTERLY DIVIDEND OF $0.03 FOR CLASS B SHAREHOLDERS AND $0.02875 FOR CLASS A SHAREHOLDERS; ADOPTS A REVISED DIVIDEND PAYMENT SCHEDULE
Corus Entertainment Inc. has declared a dividend of three cents per Class B non-voting participating share and 2.875 cents per Class A participating share payable on March 31, 2023, to shareholders of record at the close of business on March 15, 2023. A revised dividend payment schedule has also been adopted.
The foregoing dividends are designated as "eligible" dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Corus will be adopting a new dividend rate and payment schedule, following a review of the company's capital allocation policy by the board of directors.
Effective March 31, 2023, Corus's annual dividend rate will be reduced to 12 cents per Class B share and 11.5 cents per Class A share, in line with both the company's long-term goal of maintaining a dividend yield in excess of 2.5 per cent and current industry peer benchmarks.
The dividend payment schedule will be changed to more closely align with the end of each fiscal quarter. The third quarter fiscal 2023 dividend will be paid on March 31, 2023. Thereafter, a revised dividend payment schedule will be adopted with expected quarterly payment dates shifting to August, November, February and May (from June, September, December and March), with any such dividend declarations being subject to board approval.
"Our board has always taken a prudent approach to capital allocation, which is designed to position the company for long-term value creation," said Heather Shaw, executive chair. "We recognize that a market-competitive dividend is important to our shareholders and this remains a key priority as we navigate current macroeconomic factors. While we continue to make strategic investments in the business to drive future growth, this redeployment of capital from dividends is expected to be directed to debt repayment."
Corus's board of directors reviews the dividend on a quarterly basis. Shareholders are entitled to receive dividends only when any such dividends are declared by Corus's board of directors and there is no entitlement to any dividend prior thereto.
Registered shareholders who are residents of Canada and who are not currently participating in Corus's dividend reinvestment plan may elect to participate in the plan through the completion of an enrolment form which can be obtained from the company's plan administrator, TSX Trust Company, on its website,
or by calling 1-800-387-0825. The plan allows eligible holders of Class A shares and Class B shares to acquire additional Class B shares through reinvestment of the cash dividends paid on their respective shareholdings. Non-registered beneficial shareholders who are residents of Canada and who wish to join the plan should consult their broker, financial institution or other intermediary through which they hold Class A shares or Class B shares.
Corus's board of directors confirms that the company will distribute shares purchased on the open market at no discount from the average market price to the plan participants of record, as determined pursuant to the terms of the plan.
There were 3,371,526 Class A voting shares and 196,068,632 Class B non-voting shares outstanding on Feb. 28, 2023. Corus Entertainment Inc. reports in Canadian dollars.
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, digital and streaming services, 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.
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