CORUS ENTERTAINMENT ANNOUNCES FISCAL 2022 THIRD QUARTER RESULTS

• Consolidated revenue increased 8% for the quarter and 6% year-to-date
• Consolidated segment profit⁽¹⁾ decreased 5% for the quarter and 8% year-to-date
• Consolidated segment profit margin⁽¹⁾ of 29% for the quarter and 31% year-to-date
• Net income attributable to shareholders of $29.6 million ($0.14 per share basic) for the quarter and $122.0 million ($0.59 per share basic) year-to-date
• Net debt to segment profit⁽¹⁾ of 2.76 times at May 31, 2022, consistent with 2.76 times at August 31, 2021
• Free cash flow⁽¹⁾ of $27.5 million for the quarter and $194.9 million year-to-date

TORONTO, June 29, 2022 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.

"Our portfolio of businesses is producing growth on all fronts, delivering strong consolidated revenue gains for the fifth consecutive quarter," said Doug Murphy, President and Chief Executive Officer. "The diversity and resiliency of our business is evident with these results, as we benefit from multiple revenue initiatives including organic investments to further expand our digital business, grow our streaming product offering and build out our original content slate in pursuit of international content licensing opportunities. We have unveiled yet another strong fall schedule that once again secures our foothold as Canada's home of leading entertainment and lifestyle programming."

The Company advanced its Strategic Priorities on multiple fronts. Corus expanded its digital and traditional video advertising offerings; unveiled its extensive 2022/2023 programming lineup for Global TV and Corus' portfolio of Specialty Networks, announced its 2022/2023 original content production slate and international sales were secured through Corus' content business. The Company advanced its capital allocation priorities through investments in the business to support future growth opportunities, maintaining dividends, bank debt repayments, and share repurchases.

• 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.
• The Company and Paramount Global announced that Pluto TV, the world's leading FAST (free ad-supported streaming television) service, will launch in Canada this fall. Pluto TV will encompass more than 100 unique, curated channels and over 20,000 hours of content, offering a full spectrum of free programming including drama, comedy, lifestyle, kids, movies, around-the-clock news, and more. Corus will act as advertising sales representative in Canada and provide multiple Canadian channels to the service.
• The Company announced more than 200 additional hours of Canadian original content across its portfolio of networks. The lineup of premium original content for 2022/2023 includes 45 greenlights and renewals, and more than 600 episodes. Departure and Family Law will return to the Global TV schedule while the Corus Studios slate for 2022/2023 includes 24 titles, with returning hits Island of Bryan and Scott's Vacation House Rules plus new series Pamela's Garden of Eden and Renovation Resort.
• The Company's Global TV unveiled its extensive 2022/2023 programming lineup, featuring returning top hits Survivor, 9-1-1 and CSI: Vegas, and new series Fire Country, Monarch and So Help Me Todd.

• Free cash flow⁽¹⁾ of $27.5 million in Q3 and $194.9 million year-to-date compared to $64.7 million and $216.8 million year-to-date, respectively, in the same comparable prior year periods. The decrease in free cash flow in the third quarter is attributable to a decrease in cash provided by operating activities of $37.5 million. The decrease in free cash flow for the nine months ended May 31, 2022 is mainly attributable to a decrease in cash provided by operating activities of $63.4 million, offset by a $43.5 million venture fund distribution.
• Net debt to segment profit⁽¹⁾ was 2.76 times at May 31, 2022, up from 2.70 at February 28, 2022, but consistent with August 31, 2021. 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⁽¹⁾ for the most recent four quarters.
• In the third quarter, the Company purchased 4,018,000 of its Class B Non-Voting Participating Shares under a normal course issuer bid at an average acquisition price of $4.29.
• As of May 31, 2022, the Company had $51.7 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 nine months ended May 31, 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 June 29, 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 1.647.484.0477 and for North America is 1.800.289.0571. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Many provinces and territories have lifted many of the health restrictions related to COVID-19, which has led to a phased return to on-site work across various sectors. However, disruptions caused by prior imposition or removal of public health restrictions, public sentiment about the pandemic and continuing 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 demand and 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.

As discussed further in the 2021 MD&A under the heading "Economic Conditions", 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, may affect discretionary consumer and business spending, resulting in increased or decreased demand for Corus' product offerings. In addition, elevated consumer price index inflation driven by sharp increases in energy and food prices as well as supply disruptions and strong demand for goods can also affect the Company's business operations and financial performance. All of the foregoing factors may adversely affect the Company through disruption to supply chains, increased costs of labour or disruption to availability of labour, related 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. Finally, in all cases, the Company's business and financial condition are subject to audience and consumer acceptance of Corus' brands, programming and talent.

This press release includes the non-GAAP or 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 ("GAAP") and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Non-GAAP 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-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-GAAP measures is included in the Company's most recent Report to Shareholders for the three and nine months ended May 31, 2022, which is available on Corus' website at www.corusent.com as well as on SEDAR at www.sedar.com.

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; the Company's ability to manage retention and reputation risks related to its on-air talent; 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 it does 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 it's growth; the Company's ability to successfully defend itself against litigation matters and complaints; 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.

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.