Corus Entertainment Inc. - Fourth Quarter Report to Shareholders

Corus Entertainment Inc. - Fourth Quarter Report to Shareholders

TORONTO, Oct. 25 /PRNewswire-FirstCall/ -- ------------------------------------------------------------------------- HIGHLIGHTS ------------------------------------------------------------------------- (Unaudited) (thousands of Canadian Three months ended Twelve months ended dollars except per August 31, August 31, share data) 2005 2004 2005 2004 -------------------------------------------------------------------------

Revenues 175,279 162,959 683,069 666,804 Segment profit Radio 15,783 16,234 69,005 60,042 Television 30,756 28,712 140,782 125,055 Content 1,772 108 3,568 (83,721) Corporate (5,972) (2,609) (18,611) (10,970) Eliminations 232 392 567 (8) --------- --------- --------- --------- 42,571 42,837 195,311 90,398 --------- --------- --------- --------- --------- --------- --------- ---------

Net income (loss) 9,662 14,018 71,114 (23,137) Earnings (loss) per share Basic $0.23 $0.33 $1.66 $(0.54) Diluted 0.22 0.33 1.65 (0.54)

Weighted average number of shares outstanding (in thousands) Basic 42,793 42,739 42,761 42,719 Diluted 43,412 42,831 43,095 42,719

Significant Events in the Quarter

- On May 30, 2005, Corus completed the Astral radio asset transaction. Under the terms of the deal, Corus acquired seven AM stations and one FM station and sold five FM stations to Astral Media Inc.

- On June 1, 2005, the Radio-Television News Directors Association of Canada presented CKNW News-Talk 980 in Vancouver with a regional award in the Large Market Category for the program Crystal Meth - A Special Investigation.

- On June 2, 2005, The Association of Canadian Advertisers commended Corus Radio for the Company's "radio performance guarantee".

- On June 2, 2005, the Alliance for Children and Television (ACT) awarded Corus Entertainment with six awards including: Award of Excellence, Animation 9-14, for Delta State, produced by Nelvana Ltd.; and Best Program for YTV's This is Daniel Cook.

- On June 6, 2005, Telelatino announced the availability of Super Trio Italiano, a suite of digital channels, in Montreal and Gatineau areas in Quebec through Videotron.

- On June 12, 2005, the Franklin Children's Garden opened on the Toronto island.

- On June 20, 2005 Nickelodeon announced a pick-up of 20 new episodes of Nelvana's Miss Spider's Sunny Patch Friends. In its inaugural season on Nick Jr., the show ranked third among all new preschool series on commercial television. The Backyardigans, also co-produced by Nelvana was ranked second.

- On June 28, 2005 the Association of Canadian Advertisers announced that Corus' President and Chief Executive Officer, John Cassaday, would be the recipient of the ACA Gold Medal Award. The award is presented to an individual who has made an outstanding contribution to the advancement of marketing communications in Canada.

- On June 28, 2005, Corus Entertainment won 19 PROMAX Promotion and Marketing awards including ten gold awards. Corus also won two awards at the Worldfest Film Festival in Houston.

- On July 7, 2005 Corus announced the launch of a video-on-demand channel, Vortex on Demand with Comcast for the U.S. market. This marks a new platform for the delivery of Nelvana content as well as recognition of the appeal of its programming library.

Significant Events Subsequent to the Quarter

- On September 16, 2005, Corus announced that the Movie Central service would be available for broadcast in High Definition to Bell Express Vu customers.

- On September 29, 2005 Corus hosted its annual Investor Day. Financial guidance for fiscal 2006 was given as follows: segment profit of between $210 to $220 million and free cash flow of between $70 to $85 million.

- On October 14, 2005, the Copyright Board of Canada announced its decision to increase royalties paid by commercial radio stations to the Society of Composers, Authors and Music Publishers of Canada (SOCAN) and the Neighbouring Rights Collective of Canada (NRCC) for their use of music from 2003 to 2007.

Management's Discussion and Analysis

The following should be read in conjunction with Management's Discussion and Analysis, consolidated financial statements and the notes thereto included in our August 31, 2004 Annual Report. All amounts are stated in Canadian dollars unless specified otherwise.

Cautionary statement regarding forward-looking statements

Certain statements in this report may constitute forward-looking statements and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our 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 us; 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; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; and changes in accounting standards. Consequently, all of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

Overview of Consolidated Results

The fourth quarter was highlighted by strong revenue growth and excellent operating performance from our Radio, Television and Content segments. Net income for the quarter was $9.7 million on revenues of $175.3 million, compared to $14.0 on revenues of $163.0 million in the prior year. Consolidated results were negatively impacted by a charge for the increase in the performing rights tariff retroactive to fiscal 2003. Television delivered segment profit growth of 7%, while Content contributed another quarter of positive segment profit.

Fourth Quarter Results

Revenues

Revenues for the fourth quarter were $175.3 million, an increase of 8% over $163.0 million last year. Radio and Television experienced increases of 12% and 7% respectively driven by exceptionally strong advertising sales growth, while Content revenues were up 1% from the prior year.

Direct cost of sales, general and administrative expenses

Direct cost of sales, general and administrative expenses for the fourth quarter were $132.7 million, up 10% from $120.1 million in the prior year. Radio expenses were up 18% as the ex-Astral stations acquired at the beginning of the quarter were integrated into the Quebec cluster. Corporate expenses were up by $3.4 million as a result of incentive- and stock-based compensation and the costs of regulatory compliance associated with the Sarbanes-Oxley Act.

Depreciation

Depreciation expense for the fourth quarter was $5.9 million, a decrease of $0.5 million from last year. This decrease reflects a lower capital cost base.

Amortization

Amortization expense for the fourth quarter was $1.1 million, down from $1.3 million last year. The decrease is a result of certain deferred start-up and reformatting costs becoming fully amortized.

Interest on long-term debt

Interest expense for the fourth quarter was $14.3 million, up from $13.6 million last year. The increase results from the fact that the Company terminated its fixed-to-floating interest rate swap agreement in the third quarter of fiscal 2005. The effective interest rate for the fourth quarter was 9.4% compared to 8.5% in the prior year reflecting the absence of interest savings from the fixed-to-floating interest rate swap.

Other expense (income), net

Other expense for the fourth quarter was $5.3 million, compared to income of $3.2 million in the prior year. The fourth quarter includes a realized contingent consideration gain of $4.1 million, a broadcast license impairment of $4.1 million and the retroactive portion of a performing rights tariff increase in the amount of $3.8 million, while the prior year includes an unrealized derivative transaction gain of $2.5 million and foreign exchange gains of $1.4 million.

Income taxes

The effective tax rate for the fourth quarter was 36.0%, compared to the statutory rate of 36.3%. This difference reflects the geographical allocation of the Company's taxable income.

Net income

Net income for the fourth quarter was $9.7 million, down from $14.0 million last year. Earnings per share for the fourth quarter were $0.23 basic and $0.22 diluted, compared with $0.33 basic and diluted last year.

Year to Date Results

Revenues

Revenues for the year were $683.1 million, up 2% from $666.8 million last year. Radio and Television experienced increases of 11% and 7% respectively, while Content was down 27% from the prior year primarily due to lower merchandising revenues.

Direct cost of sales, general and administrative expenses

Direct cost of sales, general and administrative expenses for the year were $487.8 million, down 15% from $576.4 million in the prior year. The third quarter of fiscal 2004 includes a write-down in film investments of $85.0 million. Excluding the write-down, direct cost of sales, general and administrative expenses experienced a 1% decrease.

Depreciation

Depreciation expense for the year was $23.7 million, a decrease of $2.0 million from $25.7 million last year. This change reflects a lower capital cost base due to reduced capital expenditures and existing assets becoming fully depreciated.

Amortization

Amortization expense for the year was $4.6 million, down from $7.3 million last year. The decrease is a result of certain deferred start-up and reformatting costs becoming fully amortized.

Interest on long-term debt

Interest expense for the year was $55.6 million, up from $55.3 million last year primarily due to lower savings generated by a fixed-to-floating interest rate swap in fiscal 2005 compared to fiscal 2004. The effective interest rate for the year was 9.1% compared to 8.6% in the prior year. This increase reflects a higher ratio of fixed rate debt in fiscal 2005 as the Company repaid its floating rate bank loans in the first quarter.

Other expense (income), net

Other income for the year was $5.5 million, compared to $4.9 million in the prior year. The current year includes net derivative transaction gains of $4.4 million, foreign exchange gains of $3.3 million, a realized contingent consideration gain of $4.1 million, a broadcast license impairment of $4.1 million and the retroactive portion of a performing rights tariff increase in the amount of $3.8 million, while the prior year includes net derivative transaction gains of $1.0 million and foreign exchange gains of $2.2 million.

Income taxes

The effective tax rate for the year was 36.6%, compared to the statutory rate of 36.3%. This difference reflects the geographical allocation of the Company's taxable income and the non-deductibility of stock-based compensation.

Net income

Net income for the year was $71.1 million, up from a loss of $23.1 million last year. Earnings per share were $1.66 basic and $1.65 diluted, compared with a loss per share of $0.54 basic and diluted last year.

Radio

The Radio division comprises 53 radio stations situated primarily in nine of the ten largest Canadian markets by population and in the densely populated area of southern Ontario. Corus is Canada's leading radio operator in terms of revenues and audience reach.

Financial Highlights (Unaudited) Three months ended Twelve months ended (thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Revenues 65,270 58,316 252,685 227,868 Direct cost of sales, general and administrative expenses 49,487 42,082 183,680 167,826 ------------------------------------------------------------------------- Segment profit 15,783 16,234 69,005 60,042 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Revenues for the fourth quarter were $65.3 million, up 12% from the corresponding period last year. Revenue growth continued across Canada, particularly in Quebec which benefited from the newly acquired stations. Local and national airtime sales for the division increased over the prior year by 9% and 15%, respectively. Advertising spending across Canada has been strong and collectively, Corus Radio stations out-paced the growth in advertising in important Toronto and Montreal markets, according to the Trans-Canada Radio Advertising by Market ("TRAM") report for the quarter ended August 31, 2005.

Revenues for the year were $252.7 million, up 11% from the corresponding period last year as our stations continued to be well positioned to take advantage of a strong advertising market. This growth was experienced across Canada, and in both local and national advertising. Based on the TRAM report Corus stations generated advertising growth of 11.3%, compared to total market growth of 8.7%.

Direct cost of sales, general and administrative expenses for the fourth quarter were $49.5 million, up 18% from the corresponding period last year. This increase results from the integration of the eight newly acquired stations in Quebec and the increase in the performing rights tariff.

Direct cost of sales, general and administrative expenses for the year were $183.7 million, up 9% from last year, mainly due to higher variable costs such as sales commissions and copyright fees, as well as higher on-air talent compensation costs and Quebec integration costs.

Segment profit for the fourth quarter was $15.8 million, a decrease of 3% over the corresponding period last year as Corus integrated the newly acquired stations. Segment profit for the year was $69.0 million, up 15% from the corresponding period last year as the strong revenue growth of the first three quarters continued through the fourth quarter. Segment profit for fiscal 2005 includes the $2.6 million negative impact of the newly announced tariff rates imposed by the Copyright Board for 2005. The retroactive portion for fiscals 2003 and 2004 of $3.8 million has been reflected in "Other expense (income), net".

Television

The Television division is composed of the following: specialty television networks YTV, Treehouse TV, W Network, Corus' 80% interest in CMT (Country Music Television), 50.5% interest in Telelatino, 40% interest in Teletoon and a 19.9% interest in Food Network; Corus' premium television services Movie Central and Encore; interests in three digital television channels, Scream, Discovery Kids and The Documentary Channel; Corus Custom Networks, a cable advertising service; three conventional television stations; and Max Trax, a residential digital audio service.

Financial Highlights (Unaudited) Three months ended Twelve months ended (thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Revenues 83,449 78,257 354,201 332,349 Direct cost of sales, general and administrative expenses 52,693 49,545 213,419 207,294 ------------------------------------------------------------------------- Segment profit 30,756 28,712 140,782 125,055 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Revenues for the fourth quarter were $83.4 million, up 7% over the corresponding period last year. Revenue growth was driven by continued advertising growth of 7% and subscriber growth of 6%, while other non- broadcast related revenues were down in the quarter. On the advertising side, the strong growth was driven by CMT, W Network and Teletoon. Specialty advertising revenues grew 11% over the prior year's quarter. The subscriber revenue growth was driven by Movie Central, Corus' western-based pay television service which grew by 10% in the fourth quarter and finished the quarter with 748,000 subscribers, up 6% from 707,000 at August 31, 2004.

Revenues for the year were $354.2 million, up 7% from last year. Advertising revenues were up 9% for the year and subscriber revenues were up 5% over the prior year. Specialty advertising revenues grew 13% over the prior year.

Direct cost of sales, general and administrative expenses were $52.7 million for the fourth quarter, up 6% from the prior year. The increase was primarily due to higher overall cost of sales and higher variable costs associated with increased revenues. Amortization of program and film rights, included in direct cost of sales, increased as a result of a higher proportion of blockbuster movies acquired at Movie Central. These same factors contributed to direct cost of sales, general and administrative expenses for the year of $213.4 million, up 3% from the corresponding period last year. These increased costs were offset by effective cost containment in general and administrative overhead.

Segment profit for the fourth quarter was $30.8 million, up 7% from the prior year. Segment profit for the year was $140.8 million, up 13% from last year.

Content

The Content division consists of the production and distribution of television programs and the sale and licensing of related products.

Financial Highlights (Unaudited) Three months ended Twelve months ended (thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Revenues 27,950 27,739 82,318 112,639 Direct cost of sales, general and administrative expenses 26,178 27,631 78,750 196,360 ------------------------------------------------------------------------- Segment profit 1,772 108 3,568 (83,721) ------------------------------------------------------------------------- -------------------------------------------------------------------------

Revenues for the fourth quarter were $28 million, an increase of 1% from the prior year. During the quarter Content produced 12 episodes, primarily of 6Teen and The Backyardigans, plus four direct-to video features, compared to 33 episodes in the prior year. The increase in revenues despite lower episode delivery came as a result of service revenue and music royalties, as well as first-window sales related to earlier deliveries. Revenues for the year were $82.3 million, down 27% from last year. Revenues were down for the year due primarily to the decline in Beyblade revenue in both broadcast sales and licensing. Included in Content's revenues are $6.1 million in intercompany revenues, unchanged from the prior year. These revenues are eliminated upon consolidation.

Direct cost of sales, general and administrative expenses for the fourth quarter were $26.2 million, down by 5% from the prior year. Direct cost of sales, general and administrative expenses for year were $78.8 million, down 60% from the prior year. In the third quarter of fiscal 2004, the Content division recorded an $85.0 million write-down of its film investments. Excluding the write-down, direct cost of sales, general and administrative expenses were down 29%, reflecting lower costs of sales associated with lower revenues.

Segment profit for the fourth quarter was $1.8 million, compared to $0.1 million last year. Segment profit for the year was $3.6 million, compared to a loss of $83.7 million last year. The Content division continues to perform in line with the Company's expectations.

Corporate

The Corporate segment results represent the incremental cost of corporate overhead in excess of the amount allocated to the other operating segments.

Financial Highlights (Unaudited) Three months ended Twelve months ended (thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Stock-based compensation 2,178 322 6,766 2,984 Other general and administrative costs 3,794 2,287 11,845 7,986 ------------------------------------------------------------------------- General and administrative expenses 5,972 2,609 18,611 10,970 ------------------------------------------------------------------------- -------------------------------------------------------------------------

General and administrative expense increased to $6.0 million in the fourth quarter from $2.6 million in the same period last year. General and administrative expenses for the year increased to $18.6 million from $11.0 million last year.

Stock-based compensation includes the expenses related to the Company's Performance Share Units and the issuance of stock options. The increase in the quarter and year reflects the impact of Corus' higher average share price in fiscal 2005 on expenses related to the Company's Performance Share Units, as well as an additional year of expensing stock options.

The increase in other general and administrative costs of $1.5 million in the fourth quarter and $3.9 million for the year relate primarily to increased costs of information technology and implementation costs associated with compliance with the Sarbanes-Oxley Act.

Quarterly Consolidated Financial Information

The following table sets forth certain unaudited data from the consolidated statements of income (loss) and retained earnings (deficit) for each of the eight most recent quarters ended August 31, 2005. The information has been derived from the Company's unaudited consolidated financial statements that, in management's opinion, have been prepared on a basis consistent with the audited consolidated financial statements contained in the Company's Annual Report for the year ended August 31, 2004.

(thousands of Segment Net Earnings Canadian Revenues profit income (loss) per share dollars) (loss) (loss) Basic Diluted ------------------------------------------------------------------------- 2005 4th Qtr 175,279 42,571 9,662 $0.23 $0.22 3rd Qtr 171,890 52,351 19,430 0.45 0.45 2nd Qtr 155,300 38,024 12,945 0.30 0.30 1st Qtr 180,600 62,365 29,077 0.68 0.68 2004 4th Qtr 162,959 42,837 14,018 $0.33 $0.33 3rd Qtr 163,864 (43,777) (51,160) (1.20) (1.20) 2nd Qtr 155,019 34,069 8,305 0.19 0.19 1st Qtr 184,962 57,269 5,700 0.13 0.13

Seasonal Fluctuations

As discussed in Management's Discussion and Analysis for the year ended August 31, 2004, the first quarter results tend to be the strongest and second quarter results tend to be the weakest in a fiscal year.

Significant items causing variations in quarterly results

- The first quarter of fiscal 2004 was impacted by the Ontario government's decision to cancel previously announced reductions to future tax rates and to increase current tax rates. This change in Ontario tax rates caused an increase in the Company's non-cash income tax expense and net future tax liability position of $17.8 million ($0.42/share).

- The third quarter of fiscal 2004 was impacted by a non-cash, after-tax write-down in film investments of $60.3 million ($1.41/share) resulting from the Company's decision to lower estimates of future revenue as a result of a challenging library market and lower U.S. dollar. The pre-tax write-down of $85.0 million was recorded in operating, general and administrative expenses.

Risks and Uncertainties

There have been no material changes in any risks or uncertainties facing the Company since the year ended August 31, 2004.

Financial Position

Total assets at August 31, 2005 were $1.93 billion compared to $1.87 billion at August 31, 2004. The following discussion describes the significant changes in the consolidated balance sheet since August 31, 2004.

Current assets increased by $49.5 million. Cash and cash equivalents increased by $42.9 million. Accounts receivable increased by $11.7 million as a result of increased revenues at Radio and Television.

Non-current assets increased by $6.9 million. Tax credits receivable increased by $1.5 million due to accruals made related to film production. Property, plant and equipment decreased by $6.1 million as capital expenditures of $19.2 million were offset by depreciation of $23.7 million and asset disposals of $2.1 million. Program and film rights (current and non-current) increased by $23.1 million, as accruals for acquired rights of $133.5 million were offset by amortization of $110.6 million. Film investments increased by $1.6 million, as net film spending of $49.4 million was offset by film amortization and accruals for tax credits. Deferred charges decreased by $3.7 million due primarily to amortization. Broadcast licenses increased by $5.5 million as a result of the Quebec radio station swap and an impairment provision of $4.1 million, while goodwill decreased by $9.2 million as a result of the sale of Locomotion's assets and the Quebec radio station swap.

Current liabilities increased by $9.3 million. Accounts payable and accrued liabilities increased by $10.8 million and income taxes payable decreased by $1.5 million. Accounts payable and accrued liabilities related to working capital increased by $10.3 million, due to the timing of trade accounts payable and the impact of higher performing rights tariffs, while non-working capital accruals for program rights and film investments increased by $0.5 million.

Non-current liabilities decreased by $21.9 million. Long-term debt decreased by $84.0 million, resulting from repayments of $34.0 million and foreign exchange translation adjustments. Deferred credits increased by $49.6 million, as payments of $9.9 million for public benefits related to acquisitions were offset by $47.2 million in translation adjustments for cross-currency agreements and other working capital adjustments. Net future tax liability (including current asset) increased by $10.9 million primarily as a result of the utilization of tax loss carryforwards. Other long-term liabilities increased by $6.7 million as a result of an increase in the long-term portion of program rights accruals.

Share capital increased by $1.9 million primarily as a result of the exercising of employee stock options. Contributed surplus increased by $2.3 million as a result of expensing stock options for the period. Cumulative translation adjustment decreased by $3.0 million primarily due to the effect of exchange rate fluctuation on the translation of the net assets of self-sustaining foreign operations.

Liquidity and Capital Resources

Cash flows

Overall, the Company's cash and cash equivalents position increased by $28.5 million in the fourth quarter, and increased by $42.9 million in the twelve months ended August 31, 2005.

Cash provided by operating activities for the fourth quarter was $41.3 million, compared to $24.8 million last year. An increase in net income adjusted for non-cash items of $1.9 million and decrease of $20.2 million in change to non-cash working capital was offset by an increase in film expenditures of $6.7 million. Cash provided by operating activities for the year was $102.4 million compared to $84.9 million in the prior year. An increase in net income adjusted for non-cash items of $5.8 million and reduced non-cash working capital of $20.6 million were offset by an increase of $7.1 million in program rights expenditures.

Cash used in investing activities was $11.5 million for the fourth quarter compared to $10.9 million last year. Cash used in investing activities for the year was $22.5 million, compared to $32.4 million in the prior year, as there were reduced requirements for cash for investments, as well as proceeds from the sale of non-core assets.

Cash used in financing activities in the fourth quarter was $1.4 million compared to a source of $1.3 million last year. Cash used in financing activities for the year was $37.1 million, compared to $1.1 million in the prior year, as the Company paid down its U.S. dollar denominated bank loan balance of $34.0 million in the first quarter of fiscal 2005.

Net debt and adjusted net debt

At August 31, 2005, net debt was $307.1 million, down from $433.9 million at August 31, 2004. Adjusted net debt at August 31, 2005 was $465.9 million, down from $545.5 million at August 31, 2004. Adjusted net debt to adjusted segment profit at August 31, 2005 was 2.4 times, down from 3.1 times at August 31, 2004.

Key Performance Indicators

The Company measures the success of its strategies using a number of key performance indicators. These have been outlined in the Management's Discussion and Analysis contained in the Annual Report for the year ended August 31, 2004, including a discussion as to their relevance, definitions, calculation methods and underlying assumptions. Certain key performance indicators are not measurements in accordance with Canadian or U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income or any other measure of performance under Canadian or U.S. GAAP.

The following tables reconcile those key performance indicators that are not in accordance with GAAP measures.

Free cash flow

Three months ended Twelve months ended (thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Cash provided by (used in): Operating activities 41,346 24,783 102,416 84,912 Investing activities (11,476) (10,873) (22,455) (32,425) ------------------------------------------------------------------------- Free cash flow 29,870 13,910 79,961 52,487 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Net debt and adjusted net debt

As at As at August 31, August 31, (thousands of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- Long-term debt 445,162 529,139 Cash and cash equivalents (138,086) (95,231) ------------------------------------------------------------------------- Net debt 307,076 433,908 Unrealized cumulative foreign exchange gains 158,838 111,625 ------------------------------------------------------------------------- Adjusted net debt 465,914 545,533 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Adjusted net debt to adjusted segment profit

As at As at August 31, August 31, (thousands of Canadian dollars 2005 2004 except ratios) ------------------------------------------------------------------------- Adjusted net debt (numerator) 465,914 545,533 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted segment profit Segment profit(1) 195,311 90,398 Write-down of film investments(1) - 85,000 ------------------------------------------------------------------------- Adjusted segment profit (denominator) 195,311 175,398 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted net debt to adjusted segment profit 2.4 3.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the "Quarterly Consolidated Financial Information" of Management's Discussion and Analysis.

CORUS ENTERTAINMENT INC. CONSOLIDATED BALANCE SHEETS

As at As at August 31, August 31, 2005 2004 (unaudited) (revised - (thousands of Canadian dollars) note 13(b)) ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 138,086 95,231 Accounts receivable 155,343 143,641 Prepaid expenses and other 10,948 9,674 Program and film rights 93,725 92,786 Future tax asset 6,498 13,719 ------------------------------------------------------------------------- Total current assets 404,600 355,051 -------------------------------------------------------------------------

Tax credits receivable 12,292 10,774 Investments and other assets 36,886 41,683 Property, plant and equipment, net 76,041 82,105 Program and film rights 54,715 32,523 Film investments (note 3) 58,417 56,867 Deferred charges 15,560 19,305 Broadcast licenses 514,552 509,040 Goodwill (note 4) 755,301 764,518 ------------------------------------------------------------------------- 1,928,364 1,871,866 ------------------------------------------------------------------------- -------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 172,236 161,397 Income taxes payable 3,049 4,567 ------------------------------------------------------------------------- Total current liabilities 175,285 165,964 -------------------------------------------------------------------------

Long-term debt (note 5) 445,162 529,139 Deferred credits (note 6) 195,789 146,164 Future tax liability 147,744 144,085 Other long-term liabilities 22,895 16,203 Non-controlling interest 11,227 9,131 ------------------------------------------------------------------------- Total liabilities 998,102 1,010,686 -------------------------------------------------------------------------

SHAREHOLDERS' EQUITY Share capital (note 7) 885,911 884,053 Contributed surplus 3,558 1,287 Retained earnings (deficit) 50,802 (17,122) Cumulative translation adjustment (note 11) (10,009) (7,038) ------------------------------------------------------------------------- Total shareholders' equity 930,262 861,180 ------------------------------------------------------------------------- 1,928,364 1,871,866 ------------------------------------------------------------------------- -------------------------------------------------------------------------

See accompanying notes

On behalf of the Board,

John M. Cassaday Heather A. Shaw President and Chief Executive Officer Executive Chair

October 25, 2005

CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED EARNINGS (DEFICIT)

(unaudited) (in thousands of Canadian Three months ended Twelve months ended dollars except per August 31, August 31, share amounts) 2005 2004 2005 2004 ------------------------------------------------------------------------- Revenues 175,279 162,959 683,069 666,804

Direct cost of sales, general and administrative expenses 132,708 120,122 487,758 576,406 Depreciation 5,882 6,397 23,710 25,682 Amortization 1,129 1,345 4,577 7,276 Interest on long-term debt 14,285 13,593 55,561 55,276 Other expense (income), net 5,295 (3,189) (5,494) (4,937) ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 15,980 24,691 116,957 7,101

Income tax expense 5,749 9,682 42,810 26,925 ------------------------------------------------------------------------- Income (loss) before non-controlling interest 10,231 15,009 74,147 (19,824)

Non-controlling interest (569) (991) (3,033) (3,313) ------------------------------------------------------------------------- Net income (loss) for the period 9,662 14,018 71,114 (23,137)

Retained earnings (deficit), beginning of period 43,270 (30,080) (17,122) 8,135

Dividends paid (2,130) (1,060) (3,190) (2,120) ------------------------------------------------------------------------- Retained earnings (deficit), end of period 50,802 (17,122) 50,802 (17,122) ------------------------------------------------------------------------- -------------------------------------------------------------------------

Earnings (loss) per share (note 9) Basic $0.23 $0.33 $1.66 $(0.54) Diluted 0.22 0.33 1.65 (0.54) ------------------------------------------------------------------------- -------------------------------------------------------------------------

Weighted average number of shares outstanding (in thousands) Basic 42,793 42,739 42,761 42,719 Diluted 43,412 42,831 43,095 42,719 ------------------------------------------------------------------------- -------------------------------------------------------------------------

See accompanying notes

CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) Three months ended Twelve months ended (in thousands of Canadian August 31, August 31, dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income (loss) for the period 9,662 14,018 71,114 (23,137) Add (deduct) non-cash items: Depreciation 5,882 6,397 23,710 25,682 Amortization of program and film rights 26,776 24,472 110,630 105,549 Amortization of film investments 19,165 18,283 43,693 142,754 Other amortization 1,129 1,345 4,577 7,276 Future income taxes (1,787) 5,660 8,601 600 Non-controlling interest 569 991 3,033 3,313 Foreign exchange losses gains - (1,343) (2,747) (2,057) Stock-based compensation 2,178 322 6,766 2,984 Unrealized derivative losses (gains) - (2,468) (3,278) 3,278 Broadcast license impairment 4,108 - 4,108 - Other 2,014 126 1,769 (24) Net change in non-cash working capital balances related to operations 18,498 (1,655) 2,235 (18,395) Payment of program and film rights (36,580) (37,764) (122,368) (115,314) Net additions to film investments (10,268) (3,601) (49,427) (47,597) ------------------------------------------------------------------------- Cash provided by operating activities 41,346 24,783 102,416 84,912 -------------------------------------------------------------------------

INVESTING ACTIVITIES Additions to property, plant and equipment (8,441) (5,465) (19,217) (17,421) Decrease (increase) in investments, net 1,571 (1,426) 665 (3,685) Decrease in public benefits associated with acquisitions (4,606) (3,982) (9,893) (11,455) Proceeds from sale of assets - - 6,822 136 Additions to deferred charges - - (832) - ------------------------------------------------------------------------- Cash used in investing activities (11,476) (10,873) (22,455) (32,425) -------------------------------------------------------------------------

FINANCING ACTIVITIES Increase (decrease) in bank loans - 2,637 (34,017) - Decrease in other long-term liabilities (191) (234) (820) (911) Issuance of shares under stock option plan 915 - 1,650 2,212 Dividends paid (2,130) (1,060) (3,190) (2,120) Dividends paid to non-controlling interest - - (937) (521) Other - - 208 210 ------------------------------------------------------------------------- Cash provided by (used in) financing activities (1,406) 1,343 (37,106) (1,130) -------------------------------------------------------------------------

Net increase in cash and cash equivalents during period 28,464 15,253 42,855 51,357 Cash and cash equivalents, beginning of period 109,622 79,978 95,231 43,874 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 138,086 95,231 138,086 95,231 ------------------------------------------------------------------------- -------------------------------------------------------------------------

See accompanying notes

Corus Entertainment Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) August 31, 2005 (in thousands of Canadian dollars except share information)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements include the accounts of Corus Entertainment Inc. and its subsidiaries ("Corus" or the "Company"). The notes presented in these interim consolidated financial statements include only significant events and transactions occurring since the Company's last fiscal year and are not fully inclusive of all matters normally disclosed in the Company's annual audited financial statements. As a result, these interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended August 31, 2004.

These interim consolidated financial statements follow the same accounting policies and methods of application as the most recent annual consolidated financial statements.

Corus' operating results are subject to seasonal fluctuations that can significantly impact quarter-to-quarter operating results. Accordingly, one quarter's operating results are not necessarily indicative of a subsequent quarter's operating results. Each of our broadcasting businesses (Radio and Television) and our Content business have unique seasonal aspects.

For our broadcasting businesses, operating results are dependent on general advertising and retail cycles associated with consumer spending activity. Accordingly, operating results for the first quarter tend to be the strongest, reflecting pre-Christmas advertising activity and the second quarter tends to be the weakest, consistent with lower consumer spending in winter months.

For our Content business, operating results are dependent on the timing and number of television programs made available for delivery in the period, as well as timing of merchandising royalties received, none of which can be predicted with certainty. Consequently, Content's operating results may fluctuate significantly from quarter to quarter. As well, cash flows may also fluctuate and are not necessarily closely related to revenue recognition.

2. BUSINESS COMBINATIONS

Effective May 29, 2005, Corus completed an asset exchange with Astral Media Inc., that resulted in Corus acquiring eight stations in Quebec in exchange for five Corus-owned stations in Quebec, as well as other consideration including $2,500 in cash. This transaction was accounted for using the purchase method. The results of operations of the eight stations previously owned by Astral Media Inc. are included in Corus' consolidated financial statements from the date of the transaction. Accrued liabilities include a severance accrual of approximately $1,676, which was substantially settled by year-end, except for accruals relating to salary continuance. No gain or loss was recorded on this transaction.

------------------------------------------------- Consideration given: Cash (2,500) Property, plant and equipment 1,958 Broadcast licenses 2,047 Goodwill 6,917 Transaction costs 908 ------------------------------------------------- 9,330 ------------------------------------------------- -------------------------------------------------

------------------------------------------------- Assigned value of net assets acquired: Property, plant and equipment 2,750 Broadcast licenses 11,025 Accrued liabilities (1,828) Future tax liability (2,617) ------------------------------------------------- 9,330 ------------------------------------------------- -------------------------------------------------

3. FILM INVESTMENTS

As at As at August 31, August 31, 2005 2004 --------------------------------------------------------------------- Projects in development and in process, net of advances 15,876 15,990 Completed projects and distribution rights 28,796 31,843 Investments in third party film projects 13,745 9,034 --------------------------------------------------------------------- 58,417 56,867 --------------------------------------------------------------------- ---------------------------------------------------------------------

4. GOODWILL AND BROADCAST LICENSES

During the second quarter the Company sold its 50% share in the assets of the Locomotion Channel to a wholly-owned subsidiary of Sony Pictures Inc. for an aggregate $6,200 purchase price. The purchase price is to be paid out over three years and a portion is subject to certain performance related holdbacks. There was a reduction of $2,300 in goodwill, and an immaterial loss was recorded on this disposition.

As discussed in note 2, during the third quarter the Company completed the exchange of certain radio stations in Quebec with Astral Media Inc. This transaction resulted in a reduction of $6,917 in goodwill and an increase of $8,978 in broadcast licenses.

At August 31, 2005 the Company performed its annual impairment test of goodwill and broadcast licenses and determined that there was an impairment of $4,108 in the broadcast licenses related to three radio stations. This impairment charge is included in "Other expense (income), net".

5. LONG-TERM DEBT

As at As at August 31, August 31, 2005 2004 --------------------------------------------------------------------- Senior subordinated notes Principal amount translated into Canadian dollars at hedged rate 604,000 604,000 Unrealized cumulative foreign exchange gains (158,838) (111,625) --------------------------------------------------------------------- Senior subordinated notes translated at the current rate 445,162 492,375 Bank loans - 36,764 --------------------------------------------------------------------- 445,162 529,139 --------------------------------------------------------------------- ---------------------------------------------------------------------

Effective January 31, 2005 the Company's credit facility, including bank loans, with a syndicate of banks was amended. The amendment resulted in an extension of the maturity of the facility to January 31, 2009. The amount committed is $215,000 which is available on a revolving basis and repayable at maturity. Other terms of the amended credit facility are substantially similar to the prior credit facility.

6. DEFERRED CREDITS

As at As at August 31, August 31, 2005 2004 --------------------------------------------------------------------- Public benefits associated with acquisitions 21,209 31,102 Cross-currency agreements translated into Canadian dollars at the current rate 158,838 111,625 Unearned revenue from distribution and licensing of film rights 12,320 2,800 Other 3,422 637 --------------------------------------------------------------------- 195,789 146,164 --------------------------------------------------------------------- ---------------------------------------------------------------------

7. SHARE CAPITAL

Authorized

The Company is authorized to issue, upon approval of holders of no less than two-thirds of the existing Class A shares, an unlimited number of Class A participating shares ("Class A Voting Shares"), as well as an unlimited number of Class B non-voting participating shares ("Class B Non-Voting Shares"), Class A Preferred Shares, and Class 1 and Class 2 preferred shares.

Issued and Outstanding

The changes in the Class A Voting and Class B Non-Voting Shares since August 31, 2004 are summarized as follows:

Class A Class B Voting Shares Non-Voting Shares Total ---------------------- ----------------------- No. $ No. $ $ ------------------------------------------------------------------------- Balance, August 31, 2004 1,724,929 26,715 41,014,099 857,338 884,053 Issuance of shares under Stock Option Plan - - 64,020 1,650 1,650 Repayment of executive stock purchase loans - - - 208 208 ------------------------------------------------------------------------- Balance, August 31, 2005 1,724,929 26,715 41,078,119 859,196 885,911 ------------------------------------------------------------------------- -------------------------------------------------------------------------

There were no significant changes to the outstanding share capital subsequent to quarter end.

Stock Option Plan

Under the Company's Stock Option Plan, the Company may grant options to purchase Class B Non-Voting Shares to eligible officers, directors, and employees of or consultants to the Company. The maximum number of shares that can be reserved for issuance under the plan is 4,084,642. All options granted are for terms not to exceed ten years from the grant date. The exercise price of each option equals the market price of the Company's stock on the date of the grant. Options vest 25% on each of the first, second, third and fourth anniversary dates of the date of grant.

During fiscal 2005, the Company granted 443,600 stock options with a weighted average exercise price of $23.80 per share, and a term of seven and a half years. The weighted average fair value of the stock options granted in fiscal 2005 was $9.02 per option.

As at August 31, 2005, the Company has outstanding stock options for 3,438,489 Class B Non-Voting Shares, of which 2,529,331 are exercisable.

The fair value of each option granted was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions:

Fiscal Fiscal 2005 2004 --------------------------------------------------------------------- Expected life Five Years Five Years Risk-free interest rates 4.31% 4.08% to 4.67% Dividend yield 0.21% 0.19% Volatility 35.98% 37.21% to 39.52% --------------------------------------------------------------------- ---------------------------------------------------------------------

The estimated fair value of the options is amortized to income over the option's vesting period on a straight-line basis. The Company has recorded stock-based compensation expense for the three and twelve month periods of $559 and $2,271 respectively (2004 - $310 and $1,287 respectively) and this has been credited to contributed surplus.

For options granted to employees up to August 31, 2003, had compensation costs for the Company's Stock Option Plan been determined based on the fair value based method of accounting for stock-based compensation, the Company's net income and earnings per share would have been reduced to the pro forma amounts indicated below:

Three months ended Twelve months ended August 31, August 31, 2005 2004 2005 2004 --------------------------------------------------------------------- Net income (loss) 9,662 14,018 71,114 (23,137) Pro forma net income (loss) 9,418 13,717 69,598 (25,123) Pro forma basic earnings (loss) per share 0.22 0.32 1.63 (0.59) Pro forma diluted earnings (loss) per share 0.22 0.32 1.62 (0.59) --------------------------------------------------------------------- ---------------------------------------------------------------------

8. BUSINESS SEGMENT INFORMATION

The Company's business activities are conducted through three reportable operating segments:

Radio

The Radio segment comprises 53 radio stations, situated primarily in high growth urban centres in Canada. Revenues are derived from advertising broadcast over these stations.

Television

The Television segment includes interests in several specialty television networks, pay television, conventional television stations, digital audio services and cable advertising services. Revenues are generated from subscriber fees and advertising.

Content

The Content segment includes the production and distribution of television programs and the sale and licensing of related products. Revenues are generated from licensing of proprietary films and television programs, merchandise licensing and publishing. Prior to the first quarter of fiscal 2005, the Content segment had been reported with two components: Content - production and distribution; and Content - branded consumer products. Corus has changed the structure of its internal organization such that the production and distribution of television products and the licensing of related products are managed as an integrated business process, and are not meaningful to view as separate business activities. Commencing with the first quarter of fiscal 2005, the results of the Content division have been disclosed in aggregate, and the corresponding items of segment information for earlier periods have been restated.

Except as noted above, the accounting policies of the segments are the same as those described in the summary of significant accounting policies. Management evaluates the business segments' performance based on revenues less direct cost of sales, general and administrative expenses. Transactions between reporting segments are recorded at fair value.

(a) Revenues and segment profit

Three months ended August 31, 2005 Elimi- Consoli- Radio Television Content Corporate nations dated ------------------------------------------------------------------------- Revenues 65,270 83,449 27,950 - (1,390) 175,279 Direct cost of sales, general and administrative expenses 49,487 52,693 26,178 5,972 (1,622) 132,708 ------------------------------------------------------------------------- Segment profit 15,783 30,756 1,772 (5,972) 232 42,571 Depreciation 1,825 2,307 838 912 - 5,882 Amortization - 465 - 664 - 1,129 Interest on long-term debt - - - 14,285 - 14,285 Other expense (income), net 7,882 40 (3,763) 1,136 - 5,295 ------------------------------------------------------------------------- Income before income taxes and non- controlling interest 6,076 27,944 4,697 (22,969) 232 15,980 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Three months ended August 31, 2004 Elimi- Consoli- Radio Television Content Corporate nations dated ------------------------------------------------------------------------- Revenues 58,316 78,257 27,739 - (1,353) 162,959 Direct cost of sales, general and administrative expenses 42,082 49,545 27,631 2,609 (1,745) 120,122 ------------------------------------------------------------------------- Segment profit 16,234 28,712 108 (2,609) 392 42,837 Depreciation 1,972 2,374 852 1,199 - 6,397 Amortization - 644 - 701 - 1,345 Interest on long-term debt - - - 13,593 - 13,593 Other expense (income), net 464 (246) 441 (3,848) - (3,189) ------------------------------------------------------------------------- Income before income taxes and non- controlling interest 13,798 25,940 (1,185) (14,254) 392 24,691 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Year ended August 31, 2005 Elimi- Consoli- Radio Television Content Corporate nations dated ------------------------------------------------------------------------- Revenues 252,685 354,201 82,318 - (6,135) 683,069 Direct cost of sales, general and administrative expenses 183,680 213,419 78,750 18,611 (6,702) 487,758 ------------------------------------------------------------------------- Segment profit 69,005 140,782 3,568 (18,611) 567 195,311 Depreciation 6,979 9,060 3,926 3,745 - 23,710 Amortization - 1,859 - 2,718 - 4,577 Interest on long-term debt - - - 55,561 - 55,561 Other expense (income), net 7,982 312 (3,641) (10,147) - (5,494) ------------------------------------------------------------------------- Income before income taxes and non- controlling interest 54,044 129,551 3,283 (70,488) 567 116,957 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Year ended August 31, 2004 Elimi- Consoli- Radio Television Content Corporate nations dated ------------------------------------------------------------------------- Revenues 227,868 332,349 112,639 - (6,052) 666,804 Direct cost of sales, general and administrative expenses 167,826 207,294 196,360 10,970 (6,044) 576,406 ------------------------------------------------------------------------- Segment profit 60,042 125,055 (83,721) (10,970) (8) 90,398 Depreciation 8,776 8,759 2,800 5,347 - 25,682 Amortization 787 3,687 - 2,802 - 7,276 Interest on long-term debt - - - 55,276 - 55,276 Other expense (income), net 431 (1,047) 818 (5,139) - (4,937) ------------------------------------------------------------------------- Income before income taxes and non- controlling interest 50,048 113,656 (87,339) (69,256) (8) 7,101 ------------------------------------------------------------------------- -------------------------------------------------------------------------

The corporate segment represents the incremental cost of corporate overhead in excess of the amount allocated to the other operating segments.

(b) Segment assets

As at As at August 31, August 31, 2005 2004 --------------------------------------------------------------------- Radio 713,427 705,000 Television 878,323 855,186 Content 145,947 162,119 Corporate 191,963 151,782 Eliminations (1,296) (2,221) --------------------------------------------------------------------- 1,928,364 1,871,866 --------------------------------------------------------------------- ---------------------------------------------------------------------

Assets are located primarily within Canada.

9. EARNINGS (LOSS) PER SHARE

The following is a reconciliation of the numerator and denominators (in thousands) used for the computation of the basic and diluted earnings (loss) per share amounts.

Three months ended Twelve months ended August 31, August 31, 2005 2004 2005 2004 --------------------------------------------------------------------- Net income (loss) for the period (numerator) 9,662 14,018 71,114 (23,137) --------------------------------------------------------------------- ---------------------------------------------------------------------

Weighted average number of shares outstanding (denominator) Weighted average number of shares outstanding - basic 42,793 42,739 42,761 42,719 Effect of dilutive securities 619 92 334 - --------------------------------------------------------------------- Weighted average number of shares outstanding - diluted 43,412 42,831 43,095 42,719 --------------------------------------------------------------------- ---------------------------------------------------------------------

10. CONSOLIDATED STATEMENTS OF CASH FLOWS

Interest paid, interest received and income taxes paid and classified as operating activities are as follows:

Three months ended Twelve months ended August 31, August 31, 2005 2004 2005 2004 --------------------------------------------------------------------- Interest paid 37 - 53,855 55,800 Interest received 1,085 796 2,995 2,135 Income taxes paid 6,904 13,541 36,279 38,568 --------------------------------------------------------------------- ---------------------------------------------------------------------

11. FOREIGN EXCHANGE GAINS AND LOSSES

The Company has reflected certain gains and losses in its consolidated statements of income (loss) and retained earnings (deficit) as a result of exposure to foreign currency exchange rate fluctuations. A portion of these gains and losses relate to operating activities while others are of a financing nature. Foreign exchange gains and losses are reflected in the consolidated financial statements as follows:

Three months ended Twelve months ended August 31, August 31, 2005 2004 2005 2004 --------------------------------------------------------------------- Direct cost of sales, general and administrative expenses (179) (615) (829) (1,222) Other expense (income), net 815 (1,412) (3,338) (2,245) --------------------------------------------------------------------- Total foreign exchange loss (gains) 636 (2,027) (4,167) (3,467) --------------------------------------------------------------------- ---------------------------------------------------------------------

An analysis of the cumulative translation adjustment shown separately in shareholders' equity is as follows:

--------------------------------------------------------------------- Balance, August 31, 2004 (7,038) Effect of exchange rate fluctuation on translation of net assets of self-sustaining foreign operations (3,418) Other 447 --------------------------------------------------------------------- Balance, August 31, 2005 (10,009) --------------------------------------------------------------------- ---------------------------------------------------------------------

12. RELATED PARTY TRANSACTIONS

In the first quarter of fiscal 2005, Corus acquired a cable advertising business for $931 in cash from Shaw Communications Inc., a company subject to common voting control. All other related party transactions in the quarter were in the normal course of business, as described in note 26 of the Company's consolidated financial statements for the year ended August 31, 2004.

13. COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS

(a) Certain comparative consolidated amounts have been reclassified from those previously presented to conform to the presentation of the fiscal 2005 consolidated financial statements.

(b) The Company revised its balances for goodwill and future income taxes to reflect a correction in certain tax liabilities recorded in connection with acquisitions prior to fiscal 2003. The change was recorded as a reduction in goodwill and did not result in a change to net income to any previously reported period. The future tax liability and goodwill balances were each reduced by $25,000.

Source: Corus Entertainment Inc.

CONTACT: John Cassaday, President and Chief Executive Officer, Corus Entertainment Inc., (416) 642-3770; Tom Peddie, Senior Vice President & Chief Financial Officer, Corus Entertainment Inc., (416) 642-3780; Tracy Ewing, Vice President, Communications, Corus Entertainment Inc., (416) 642-3792

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