CORUS ENTERTAINMENT ANNOUNCES FISCAL 2022 SECOND QUARTER RESULTS

• Consolidated revenue increased 1% for the quarter and 6% year-to-date
• Consolidated segment profit⁽¹⁾ decreased 23% for the quarter and 9% year-to-date
• Consolidated segment profit margin⁽¹⁾ of 24% for the quarter and 32% year-to-date
• Net income attributable to shareholders of $16.2 million ($0.08 per share basic) for the quarter and $92.4 million ($0.44 per share basic) year-to-date
• Net debt to segment profit⁽¹⁾ of 2.70 times at February 28, 2022, down from 2.76 times at August 31, 2021
• Free cash flow⁽¹⁾ of $88.4 million for the quarter and $168.4 million year-to-date

TORONTO, April 8, 2022 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

"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 mid-way point of our year, Corus is well positioned to benefit from the disciplined execution of our strategic plan and priorities as the economy reopens."

Financial Highlights

Segment Revenue

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' 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 February 9, 2022, the Company announced the expansion of its premium, multi-channel 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 January 10, 2022.
• On March 1, 2022, the Company announced the Canadian launch of Magnolia Network - Chip and Joanna Gaines' joint media venture with Discovery, Inc. The Company exclusively debuted Magnolia Network on March 28, 2022, becoming the first broadcaster outside of the U.S. 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 multi-year 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 200+ episodes last year.

Financial Highlights

• Free cash flow⁽¹⁾ of $88.4 million in Q2 and $168.4 million year-to-date compared to $89.7 million and $152.1 million year-to-date, respectively, in the same comparable prior year periods. The decrease in free cash flow⁽¹⁾ 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⁽¹⁾ for the six months ended February 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 February 28, 2022, the Company issued $250.0 million in principal amount of 6.0% Senior Unsecured Notes due February 28, 2030 (the "Notes"). The net proceeds therefrom were used to repay amounts under the Company's Term Credit Facility (the "Term 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 (the "Revolving Facility") to March 18, 2027.
• Net debt to segment profit⁽¹⁾ was 2.70 times at February 28, 2022, down from 2.76 times at August 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 February 28, 2022, the Company had $95.5 million of cash and cash equivalents and the committed $300.0 million Revolving Facility that remains undrawn.

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and six months ended February 28, 2022 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section and under the Company's SEDAR profile at www.sedar.com.

A conference call with Corus senior management is scheduled for April 8, 2022 at 8:00 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 at www.corusent.com 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.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of segment profit, segment profit margin, free cash flow, adjusted net income, adjusted basic earnings per share, net debt to segment profit, optimized advertising revenue, and new platform revenue that are not in accordance with, nor an alternate to, generally accepted accounting principles ("IFRS") and may be different from non-IFRS measures used by other companies. In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders for the three and six months ended February 28, 2022, which is available on Corus' website at www.corusent.com as well as on SEDAR at www.sedar.com.

Caution Concerning Forward-Looking Information

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking information"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2022, distribution, merchandise and subscription revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's proposed share purchases, including the number of Class B non-voting shares to be repurchased under its normal course issuer bid, if any, and timing thereof; and expectations regarding financial performance including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negative of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry including the potential impact of new competition and industry mergers and acquisitions, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, the Company's ability to source desirable content and the Company's capital and operating results being consistent with the Company's expectations. Actual results may differ materially from those expressed or implied in such information. Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company's ability to attract and retain advertising revenue; audience acceptance of the Company's television programs and cable networks; the Company's ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; the Company's ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by the Company; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; the Company's ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage its growth; the Company's ability to successfully defend itself against litigation matters arising out of the ordinary course of business; failure to meet covenants under the Company's senior credit facility, senior unsecured notes or other instruments or facilities; epidemics, pandemics or other public health crises, including the current outbreak of COVID-19 and changes in accounting standards. Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Company's Management's Discussion and Analysis for the year ended August 31, 2021 and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended August 31, 2021. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on the Company's forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) 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 2D animation software supplier Toon Boom and children's book publishing house, Kids Can Press. Corus' 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, Nick+, the Global TV App and Curiouscast. For more information visit www.corusent.com.

SOURCE Corus Entertainment Inc.