Mr. Doug Murphy reports

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2024 FIRST QUARTER RESULTS

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

"Our television advertising revenue results were in line with our first quarter outlook. The impacts of industry-wide advertising market weakness have been partially offset by reductions in programming and operating costs," said Doug Murphy, president and chief executive officer. "While visibility as to the timing of the advertising recovery remains limited, our supply of premium scripted content will return to normal in the back half of this fiscal year. A standout schedule of premium scripted content will begin to roll out on Global in February. The long-awaited normalization of our programming supply is foundational to our video-first strategy that aggregates premium video on multiple digital streaming platforms. Our disciplined focus on reducing expenses across the business is evident in the first quarter results, delivering a lower cost base and improving operational efficiencies as our focus on debt repayment remains a priority."

Operational highlights

Corus advanced its strategic priorities on multiple fronts. The company announced its winter/spring 2024 schedule for Global TV on traditional and streaming platforms, expanded the availability of StackTV to the Bell Fibe TV app, continued to implement cost savings initiatives, and made bank debt repayments. The company continues to navigate an uncertain macroeconomic environment while preparing for normalization of its programming supply in February/March, 2024, following the resolution of the Hollywood strikes.

• Global announces its winter/spring 2024 programming premieres. Global announced its robust slate of winter/spring 2024 premieres, featuring returning blockbuster franchises NCIS and FBI, hit dramas CSI: Vegas and 9-1-1, acclaimed comedies Abbott Elementary and Ghosts, fall's No. 1 conventional program Survivor, fan favourite Big Brother Canada, and the introduction of new drama Elsbeth.
• StackTV is now available on Bell Fibe TV. Corus's premium multiplatform streaming service StackTV announced another expansion of its distribution footprint. Bell Fibe TV subscribers can now enjoy StackTV bundled with any existing Fibe TV app subscription. StackTV is also available to Amazon Prime Video subscribers, Rogers Ignite TV, Ignite SmartStream, FuboTV and RiverTV customers.

Financial highlights:

• Free cash flow of $23.7-million in Q1 2024 compared with $20.8-million in the prior year's quarter. The increase in free cash flow for the first quarter is mainly attributable to lower cash used in investing activities of $3.4-million, partially offset by lower cash provided by operating activities.
• Net debt to segment profit was 3.55 times at Nov. 30, 2023. Pro forma net debt to segment profit was 3.67 times at Nov. 30, 2023, up from 3.62 times at Aug. 31, 2023. This ratio increased as a result of the decline in segment profit for the most recent four quarters exceeding the effect of the reduced net debt.
• As of Nov. 30, 2023, the company had $59.3-million of cash and cash equivalents and $250.2-million available to be drawn under its $300-million revolving facility.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three months ended Nov. 30, 2023, 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 Jan. 12, 2024, 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 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 Jan. 12, 2024, at 11 a.m. ET or accessible by telephone until Jan. 19, 2024, at 1-888-390-0541 (toll-free North America) or 416-764-8677 (local or international), using replay code 079495 followed by the pound key. More information can be found on the Corus Entertainment website in the investor relations section.

Outlook

Labour actions by the Hollywood writers and actors unions have now been settled and while production is under way, there continues to be a lagging effect on the delivery of new episodes of scripted programming on television. New episodes of scripted series are expected to start delivering late in the second quarter of fiscal 2024. As a result of the continuing macroeconomic uncertainty combined with the delayed delivery of new scripted programming, the company expects its television advertising revenue in the second quarter of fiscal 2024 will decline by a high-single-digit to low-double-digit percentage compared with the prior year's second quarter. Amortization of TV program rights is expected to decline by a similar range and the company will continue with its implementation of additional cost management initiatives. While the company continues to expect improvement in the macroenvironment and the normalization of program supply over the short 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 encompass 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, the Global News website, 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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