Mr. Doug Murphy reports

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2023 THIRD QUARTER RESULTS

Corus Entertainment Inc. has released its third quarter 2023 financial results.

"The advertising recession which began last summer continues and has negatively impacted our revenues and third-quarter results," said Doug Murphy, president and chief executive officer. "As we balance the near-term challenges, we are successfully evolving our business into a powerful multiplatform aggregator of premium video with leading cross-platform monetization capabilities. Our impressive premium video content revealed at Corus's recent sales upfront will be available for all audiences across Global, our specialty networks and streaming portfolio. We are intensely pursuing efficiencies and improved productivity with significant cost reductions as we streamline our operating model to position Corus for an inevitable improvement in the economy and create shareholder value over the longer term."

Operational highlights

Corus advanced its strategic priorities on multiple fronts. The company expanded its premium digital video offerings for subscribers and advertisers, released its fall schedule and 2023/2024 series lineup for Global TV, its specialty networks and StackTV, and highlighted its Canadian original content lineup for 2023/2024. The company advanced its capital allocation priorities through investments in the business to support future growth opportunities while continuing to navigate an uncertain macroeconomic environment:

• Global TV released its 2023/2024 prime-time lineup of new acquisitions and returns of major hit series. Global TV's 2023/2024 roster will deliver 17 hours of simulcast programming in primetime for 2023/2024. Early fall features the return of Survivor for Season 45 and I Can See Your Voice, alongside new Global original drama Robyn Hood. Global's 2023/2024 season welcomes back popular franchises FBI and NCIS, along with So Help Me Todd, Fire Country, Abbott Elementary and Ghosts, and introduces new dramas Matlock, Elsbeth and Doc, and new comedy Poppa's House.
• Specialty portfolio and streaming platforms released the 2023/2024 series lineup. Corus's specialty drama networks and StackTV will feature new Peacock originals Ted, Based on a True Story and Apples Never Fall, and returning seasons of Bel Air and Dr. Death. Corus's unscripted and reality networks and StackTV will see the return of The Real Housewives of New York City and Fixer Upper: The Hotel, and new series The Unbelievable with Dan Aykroyd (working title) and Beyond Skinwalker Ranch.
• Nelvana and Corus Studios will deliver a diverse lineup of Canadian original content for 2023/2024. This includes a total of 25 new and returning series, with 11 titles from Corus Studios and eight from Nelvana. Corus Studios titles include Bryan's All In, Pamela's Garden of Eden, Scott's Vacation House Rules, Rock Solid Builds and The Big Bake. Nelvana's titles include The Hardy Boys, Agent Binky: Pets of the Universe, and Millie Magnificent.

Financial highlights:

• On June 29, 2023, Corus declared dividends of three cents per Class B share and 2.875 cents per Class A share, payable on Aug. 15, 2023, to shareholders of record at July 31, 2023.
• Free cash flow of $26.0-million in Q3 and $75.2-million year to date, compared with $27.5-million and $194.9-million year to date, respectively, in the same comparable prior-year periods. The decrease in free cash flow for the third quarter is attributable to an increase in cash used in investing activities of $1.5-million. The decrease in free cash flow for the nine months ended May 31, 2023, is mainly attributable to a decrease in cash provided by operating activities of $75.7-million and cash provided by investing activities in the prior year's nine months ended May 31, 2022, related to a $43.5-million non-recurring venture fund distribution.
• Net debt to segment profit was 3.85 times at May 31, 2023, up from 3.02 times at Aug. 31, 2022. The main driver of the increase in this ratio is the decrease of segment profit for the most recent four quarters.
• As of May 31, 2023, the company had $56.2-million of cash and cash equivalents, and approximately $300-million available under its revolving facility, $197.5-million of which could be drawn.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2023, and the related management's discussion and analysis are available on the company's website and under the company's SEDAR profile.

A conference call with Corus senior management is scheduled for June 29, 2023, at 8 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. 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 the dial-in number for North America is 1-888-664-6383. This call will be archived and available for replay on the Corus website beginning June 29, 2023, at 11 a.m. ET, or accessible by telephone until July 6, 2023, at 1-888-390-0541 (toll-free North America) or 416-764-8677 (local or international), using replay code 815361 followed by the pound key.

Risks and uncertainties

As discussed further in the 2022 MD&A, the company's operating performance is affected by general Canadian and worldwide economic conditions. Changes or volatility in domestic or international economic conditions, economic uncertainty, or geopolitical conflict and tensions, including current continuing factors that can create or exacerbate recessionary conditions, may affect discretionary consumer and business spending, including on advertising and marketing, resulting in changes to demand for Corus's products and service offerings. The continued elevated Consumer Price Index inflation also affects the company's business, operations and financial performance through disruption to supply chains, increased costs of programming, services and labour, reduced advertising demand or spending, or lower demand for the company's products and services, all of which may lead to decreased revenue or profitability. In addition, labour actions, such as the Writer's Guild of America strike, have shut down the majority of United States-based scripted productions, which may impact the timing of premium content premieres and types of programming on the company's services in the coming months, which may negatively impact audience levels.

Other financial risks that may be related to or elevated by the foregoing include: leverage risk related to the company's financial covenants and debt-servicing payments, requirements and compliance under its credit facility, and impacts thereof; the volatility of the market price for the company's Class B non-voting shares, which can be impacted by factors beyond the company's control and which can decline even if the company's operating results, underlying asset values or prospects have not changed; and risks related to the payment, amount or timing of dividends. Please see the 2022 MD&A for a full discussion of these and other risks and uncertainties.

Outlook

Currently, the company expects its television advertising revenue in the fourth quarter will decline moderately compared with the prior year, given continuing macroeconomic and other risk factors described herein and in the 2022 MD&A. While the company continues to expect improvement in the macroenvironment over the medium term, visibility continues to be 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, 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, History, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Q107, Country 105 and CFOX, along with broadly distributed Canadian streaming platforms StackTV, Teletoon+, the Global TV App and Curiouscast.

We seek Safe Harbor.