Corus Entertainment announces fiscal 2009 fourth quarter and year-end results

Corus Entertainment announces fiscal 2009 fourth quarter and year-end results

- Consolidated segment profit increases 22% in the fourth quarter - Consolidated revenues and segment profit hold flat for the year - Strong free cash flow for the quarter and the year

TORONTO, Oct. 22 /PRNewswire-FirstCall/ -- Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced its fourth quarter and year-end financial results today.

"In a very tough economy Corus was able to match last year's record revenues and segment profit through the launch of strategic new services and cost reduction initiatives," said John Cassaday, President and CEO, Corus Entertainment. "We are confident that this combined focus on innovation and cost constraint positions us well for an expected improvement in the Canadian economy."

   Financial Highlights   --------------------    (unaudited)                    Three months ended     Twelve months ended   (in thousands of                   August 31,              August 31,    Canadian dollars           ---------------------------------------------    except per share               2009        2008        2009        2008    amounts)                   ---------------------------------------------    Revenues     Radio                       59,941      68,482     258,912     286,449     Television                 135,488     117,349     530,014     500,966     Eliminations                  (208)        (57)       (208)       (259)                               ---------------------------------------------                                195,221     185,774     788,718     787,156                               ---------------------------------------------                               ---------------------------------------------    Segment profit     Radio                       15,145      15,059      60,338      75,504     Television                  46,712      38,396     209,145     199,605     Corporate                   (4,434)     (6,220)    (18,293)    (22,979)                               ---------------------------------------------                                 57,423      47,235     251,190     252,130                               ---------------------------------------------                               ---------------------------------------------    Net income (loss)             18,733      17,406     (56,635)    129,835                               ---------------------------------------------                               ---------------------------------------------   Earnings (loss) per share      Basic                       $0.23       $0.21      $(0.71)      $1.57     Diluted                      $0.23       $0.21      $(0.71)      $1.54     Consolidated Results   --------------------  

Consolidated revenues for the three months ended August 31, 2009 were $195.2 million, up 5% from $185.8 million last year. Consolidated segment profit was $57.4 million, up 22% from $47.2 million last year. Net income for the quarter was $18.7 million ($0.23 basic and diluted), compared to net income of $17.4 million ($0.21 basic and diluted) last year.

Consolidated revenues for the year ended August 31, 2009 were $788.7 million, up slightly from $787.2 million last year. Consolidated segment profit was $251.2 million, essentially unchanged from $252.1 million last year. Net loss for the year was $56.6 million ($0.71 basic and diluted loss per share), compared to net income of $129.8 million ($1.57 basic and $1.54 diluted) last year. Net loss for the year includes a $175.0 million broadcast license and goodwill impairment charge recorded in the third quarter.

   Operational Results   -------------------    Radio     -  Revenues decreased by 12% in the fourth quarter and 10% for the year.    -  Segment profit increased by 1% in the fourth quarter and decreased by       20% for the year.    -  Local airtime revenues down 12% for the fourth quarter and 10% for       the year.    -  National airtime revenues down 23% for the fourth quarter and 17% for       the year.    -  Revenue declines experienced in all regions in Canada for both the       fourth quarter and year.    -  Broadcast license and goodwill impairment charge of $175.0 million       recorded in the third quarter.    -  Restructuring provisions recorded of $5.4 million for the fourth       quarter and $8.6 million for the year as Corus aligns the cost       structure of this division with its strategic objectives.    Television     -  Revenue growth of 15% in the fourth quarter and 6% for the year.    -  Segment profit growth of 22% in the fourth quarter and 5% for the       year.    -  Advertising revenues down 10% in the fourth quarter and 6% for the       year.    -  Specialty advertising revenues down 10% in the fourth quarter and 5%       for the year.    -  Toys and Food continue to be soft advertising categories in the Kids       area.    -  Subscriber revenue growth of 19% in the fourth quarter and 14% for       the year.    -  Subscriber revenues benefited from the launches of VIVA and HBO       Canada.    -  Movie Central finished the year with 953,000 subscribers, up 7% from       last year.    Significant Events in the Quarter   ---------------------------------    -  On June 2, 2009, the Company's Nelvana Enterprises announced, in       partnership with d-rights Inc., the return of the internationally       successful Beyblade toy and programming franchise. Fifty-one new       episodes and a revamped toy line will launch in fall 2010.    -  On June 3, 2009, the Company's Nelvana Enterprises, along with       partners Cartoon Network Enterprises and Spin Master Limited, won two       International Licensing Industry Merchandisers' Association (LIMA)       Awards for the Bakugan brand. Spin Master accepted the Overall Best       Licensed Program of the Year and all partners accepted the Best TV,       Film and Entertainment Hard Goods License of the Year.    -  On June 30, July 31 and August 31, 2009, the Company paid a monthly       dividend of $0.049585 and $0.05 to holders of its Class A and Class B       Shares respectively.    -  On July 14, 2009, the Company announced that it had reached an       agreement to purchase the specialty television services Drive-In       Classics and SexTV from CTVglobemedia. The transaction is subject to       approval by the Canadian Radio-television and Telecommunications       Commission (CRTC). The combined acquisition price for both services       is approximately $40 million Cdn.    Significant Events Subsequent to the Quarter   --------------------------------------------    -  On September 9, 2009, the Company launched DUSK, a rebranded       specialty channel formerly known as SCREAM. Catering to adults 18 -       49, DUSK offers viewers access to a ramped up lineup of suspense,       thriller and supernatural-based Hollywood feature films and       television series seven days a week, 24-hours-a-day. DUSK is a       partnership between the Company and CanWest Global Communications       Corp.    -  On September 28, 2009, the Company announced plans to add       Nickelodeon, one of the world's leading entertainment brands for       kids, to its premier portfolio of kid-focused services. The channel       will launch at 6 a.m. ET on Monday, November 2, 2009. Nickelodeon in       Canada will be dedicated exclusively to Canadian kids and feature a       line-up of Nick's award-winning properties, from current live-action       comedies and animated favorites to classic hits.    -  On September 28, 2009, the Company announced a partnership with FMQB       Productions, which will see Corus Radio's syndicated content       distributed to radio affiliates across the U.S. Under the       ExploreMusic banner, U.S. stations will now feature Alan Cross' The       Ongoing History of New Music and the ExploreMusic radio program a       swell as Jeff Woods' Legends of Classic Rock. Enthusiasm for the       programs was met quickly with WEDG/Buffalo and WRZX/Indianapolis       signing on as the first American affiliates to carry Corus Radio's       flagship programs.    -  On September 29, 2009, the Company held its annual Investor Day and       updated investors on the Company's fiscal 2010 strategic priorities       and provided near-term financial guidance for the 2010 fiscal year.       The Company announced its fiscal 2010 guidance targets of       consolidated segment profit of $255 to $270 million, and free cash       flow of between $10 to $20 million. The Company also announced,       subject to CRTC approval, the rebranding of SexTV to W Movies and       announced the discontinuation of the Discovery Kids service effective       November 2, 2009.    -  On September 29, 2009, the Company announced that its Board of       Directors had approved a discount for Class B Shares issued from       treasury pursuant to the terms of its Dividend Reinvestment Plan       ("the Plan"). Under the Plan, eligible holders of Class A Shares and       Class B Shares may acquire additional Class B Shares through       reinvestment of the cash dividends paid on their respective       shareholdings. At this time, the Company's Board of Directors has       approved the issuance of shares from treasury at a two percent       discount from the average market price, as determined pursuant to the       terms of the Plan. This change will be effective for any dividends       payable on or after November 1, 2009, until such time as the Company       elects otherwise.    -  On September 30, 2009, the Company paid a monthly dividend of       $0.049585 and $0.05 to holders of its Class A and Class B Shares       respectively.    -  On October 7, 2009, The Honourable James Moore, Minister of Canadian       Heritage and Official Languages, announced a settlement between the       Government of Canada and members of the broadcasting industry on the       Part II license fee issue. The agreement has resulted in the Canadian       Association of Broadcasters and other named parties (including the       Company) discontinuing their appeal before the Supreme Court of       Canada challenging the validity of the fees that had been scheduled       to be heard on October 19, 2009. The settlement agreement includes       waiving Part II license fees that were not collected due to the       ongoing legal dispute for the broadcast years 2007, 2008 and 2009.       The Company will reverse its August 31, 2009 accrual of $16,194       million in the first quarter of fiscal 2010. Under this settlement,       the Government is also recommending that the CRTC develop a new Part       II fee regime, which would be effective commencing September 1, 2009.    Corus Entertainment Inc. reports in Canadian dollars.     About Corus Entertainment Inc.   ------------------------------  

Corus Entertainment Inc. is a Canadian-based media and entertainment company. Corus is a market leader in specialty television and radio with additional assets in pay television, advertising services, television broadcasting, children's book publishing and children's animation. The company's multimedia entertainment brands include YTV, Treehouse, W Network, CosmoTV, VIVA, Movie Central, HBO Canada, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107. Corus creates engaging branded entertainment experiences for its audiences across multiple platforms. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) exchanges. Experience Corus on the web at www.corusent.com.

The audited consolidated financial statements and accompanying notes for the year ended August 31, 2009 and Management's Discussion and Analysis will be made available on the Company's website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for October 22, 2009 at 2 p.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 North America is 1-800-919-8049 and for local/international callers is 416-981-9000. PowerPoint slides for the call will be posted at 1:45 p.m. ET on October 22, 2009 and can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

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 report 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 statements"). These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, program, merchandise and subscription revenues, operating costs and tariffs, taxes and fees, and can generally be identified by the use of the words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, program, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these 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; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form. Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. 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.

                          CORUS ENTERTAINMENT INC.                        CONSOLIDATED BALANCE SHEETS    (unaudited)   (in thousands                                        As at       As at    of Canadian                                       August 31,  August 31,    dollars)                                             2009        2008   -------------------------------------------------------------------------   ASSETS   Current   Cash and cash equivalents                             10,922      19,642   Accounts receivable                                  146,784     157,440   Income taxes recoverable                               7,267       1,615   Prepaid expenses and other                            14,377      10,135   Program and film rights                              146,195     131,301   Future tax asset                                       1,788       9,593   -------------------------------------------------------------------------   Total current assets                                 327,333     329,726   -------------------------------------------------------------------------    Tax credits receivable                                26,698      21,952   Investments and other assets                          23,693      93,086   Property, plant and equipment                         76,450      73,562   Program and film rights                               92,579     103,163   Film investments                                      92,180      80,819   Broadcast licenses                                   561,741     533,491   Goodwill                                             674,029     797,854   -------------------------------------------------------------------------                                                      1,874,703   2,033,653   -------------------------------------------------------------------------   -------------------------------------------------------------------------    LIABILITIES AND SHAREHOLDERS' EQUITY    Current   Accounts payable and accrued liabilities             171,055     196,026   -------------------------------------------------------------------------    Long-term debt                                       651,767     692,750   Other long-term liabilities                           73,360      59,936   Future tax liability                                 102,842      87,699   -------------------------------------------------------------------------   Total liabilities                                    999,024   1,036,411   -------------------------------------------------------------------------    Non-controlling interest                              21,401      20,237   -------------------------------------------------------------------------    SHAREHOLDERS' EQUITY   Share capital                                        840,602     848,257   Contributed surplus                                   17,303      17,304   Retained earnings                                     20,380     131,594   Accumulated other comprehensive loss                 (24,007)    (20,150)   -------------------------------------------------------------------------   Total shareholders' equity                           854,278     977,005   -------------------------------------------------------------------------                                                      1,874,703   2,033,653   -------------------------------------------------------------------------   -------------------------------------------------------------------------                             CORUS ENTERTAINMENT INC.                  CONSOLIDATED STATEMENTS OF INCOME (LOSS)    unaudited)   (in thousands of              Three months ended     Twelve months ended    Canadian dollars                  August 31,              August 31,    except per share           ---------------------------------------------    amounts)                       2009        2008        2009        2008   -------------------------------------------------------------------------   Revenues                     195,221     185,774     788,718     787,156   Direct cost of sales,    general and administrative    expenses                    137,798     138,539     537,528     535,026   Depreciation                   5,718       5,801      20,704      22,054   Interest expense               8,413       9,906      37,426      41,313   Broadcast license and    goodwill impairment               -           -     175,000           -   Disputed regulatory fees       1,070       1,202       5,258      10,936   Other expense, net             9,707       3,865       8,428       7,853   -------------------------------------------------------------------------   Income before income taxes    and non-controlling    interest                     32,515      26,461       4,374     169,974   Income tax expense            12,227       8,395      56,350      35,519   Non-controlling interest       1,555         660       4,659       4,620   -------------------------------------------------------------------------   Net income (loss) for the    period                       18,733      17,406     (56,635)    129,835   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Earnings (loss) per share     Basic                        $0.23       $0.21      $(0.71)      $1.57     Diluted                      $0.23       $0.21      $(0.71)      $1.54   -------------------------------------------------------------------------   -------------------------------------------------------------------------             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)                                  Three months ended     Twelve months ended   (unaudited)                        August 31,              August 31,   (in thousands of            ---------------------------------------------    Canadian dollars)              2009        2008        2009        2008   -------------------------------------------------------------------------   Net income (loss) for    the period                   18,733      17,406     (56,635)    129,835   Other comprehensive income    (loss), net of tax     Unrealized foreign      currency translation      adjustment                    192       1,031         718         (23)     Unrealized change in fair      value of available-      for-sale investments,      net of tax                    102        (176)       (253)     (1,114)     Recognition of change in      fair value of available-for      sale assets in net income    (385)          -       1,692           -     Unrealized change in fair      value of cash flow hedges,      net of tax                  2,636      (2,451)     (6,014)    (13,851)   -------------------------------------------------------------------------                                  2,545      (1,596)     (3,857)    (14,988)   -------------------------------------------------------------------------   Comprehensive income (loss)    for the period               21,278      15,810     (60,492)    114,847   -------------------------------------------------------------------------   -------------------------------------------------------------------------                             CORUS ENTERTAINMENT INC.         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY                                  Three months ended     Twelve months ended   (unaudited)                        August 31,              August 31,   (in thousands of            ---------------------------------------------    Canadian dollars)              2009        2008        2009        2008   -------------------------------------------------------------------------   Share capital   Balance, beginning of    period                      840,495     865,686     848,257     882,244   Issuance of shares under    stock option plan               107       1,555         597      12,338   Shares repurchased                 -     (18,984)     (8,450)    (46,555)   Repayment of executive    stock purchase loans              -           -         198         230   -------------------------------------------------------------------------   Balance, end of period       840,602     848,257     840,602     848,257   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Contributed surplus   Balance, beginning of    period                       15,870      15,741      17,304      10,250   Stock-based compensation       1,441       1,748       5,154       7,904   Settlement of long-term    incentive plan                    -           -      (5,138)          -   Exercise of stock options         (8)       (185)        (17)       (850)   -------------------------------------------------------------------------   Balance, end of period        17,303      17,304      17,303      17,304   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Retained earnings   Balance, beginning of    period                       13,652     140,159     131,594      95,568   Cumulative impact of    accounting changes                -           -           -      (1,594)   -------------------------------------------------------------------------   Adjusted opening balance      13,652     140,159     131,594      93,974   Net income (loss) for the    period                       18,733      17,406     (56,635)    129,835   Dividends                    (12,005)    (12,088)    (47,946)    (47,326)   Share repurchase excess            -     (13,883)     (6,633)    (44,889)   -------------------------------------------------------------------------   Balance, end of period        20,380     131,594      20,380     131,594   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Accumulated other    comprehensive loss   Balance, beginning of    period                      (26,552)    (18,554)    (20,150)    (12,169)   Cumulative impact of    accounting changes                -           -           -       7,007   -------------------------------------------------------------------------   Adjusted opening balance     (26,552)    (18,554)    (20,150)     (5,162)   Other comprehensive loss,    net of tax                    2,545      (1,596)     (3,857)    (14,988)   -------------------------------------------------------------------------   Balance, end of period       (24,007)    (20,150)    (24,007)    (20,150)   -------------------------------------------------------------------------   -------------------------------------------------------------------------                             CORUS ENTERTAINMENT INC.                   CONSOLIDATED STATEMENTS OF CASH FLOWS                                  Three months ended     Twelve months ended   (unaudited)                        August 31,              August 31,   (in thousands of            ---------------------------------------------    Canadian dollars)              2009        2008        2009        2008   -------------------------------------------------------------------------   OPERATING ACTIVITIES   Net income (loss) for the    period                       18,733      17,406     (56,635)    129,835   Add (deduct) non-cash items:     Depreciation                 5,718       5,801      20,704      22,054     Broadcast license and      goodwill impairment             -           -     175,000           -     Amortization of program      rights                     41,824      37,799     159,532     145,661     Amortization of film      investments                 9,821       6,897      25,545      28,393     Future income taxes          4,827        (292)     13,637      (7,321)     Non-controlling interest     1,555         660       4,659       4,620     Stock-based compensation     1,442       1,999       4,974       7,971     Imputed interest             1,910       1,662       7,054       6,390     Other gains and losses       4,800         523        (432)      2,203   Net change in non-cash    working capital balances    related to operations        (3,889)     18,922      (8,309)    (11,018)   Payment of program and    film rights                 (45,616)    (23,578)   (189,583)   (141,917)   Net additions to film    investments                  (9,185)    (13,603)    (42,907)    (56,293)   -------------------------------------------------------------------------   Cash provided by operating    activities                   31,940      54,196     113,239     130,578   -------------------------------------------------------------------------    INVESTING ACTIVITIES   Additions to property,    plant and equipment         (12,460)     (7,450)    (22,503)    (17,552)   Business combinations         (1,583)          -     (76,533)       (774)   Cash held in escrow                -     (74,950)     74,950     (74,950)   Net cash flows for    investments and other    assets                          338        (230)      6,966      (4,251)   Decrease in public    benefits associated with    acquisitions                 (1,308)     (1,090)     (2,744)     (3,993)   -------------------------------------------------------------------------   Cash used in investing    activities                  (15,013)    (83,720)    (19,864)   (101,520)   -------------------------------------------------------------------------    FINANCING ACTIVITIES   Increase (decrease) in    bank loans                  (29,921)     64,551     (40,219)     85,594   Issuance of shares under    stock option plan                99       1,370         580      11,488   Shares repurchased                 -     (32,867)    (15,083)    (91,444)   Dividends paid               (12,004)    (12,257)    (48,021)    (46,284)   Dividend paid to non-    controlling interest              -           -      (2,994)     (1,742)   Other                          3,444        (149)      3,642        (375)   -------------------------------------------------------------------------   Cash provided by (used in)    financing activities        (38,382)     20,648    (102,095)    (42,763)   -------------------------------------------------------------------------   Net change in cash and    cash equivalents during    the period                  (21,455)     (8,876)     (8,720)    (13,705)   Cash and cash equivalents,    beginning of period          32,377      28,518      19,642      33,347   -------------------------------------------------------------------------   Cash and cash equivalents,    end of period                10,922      19,642      10,922      19,642   -------------------------------------------------------------------------   -------------------------------------------------------------------------                             CORUS ENTERTAINMENT INC.                    SUPPLEMENTAL FINANCIAL INFORMATION    (unaudited)   (in thousands of Canadian dollars)    Three months ended August 31, 2009                                                          Elimi-        Con-                      Radio  Television   Corporate     nations   solidated   -------------------------------------------------------------------------   Revenues          59,941     135,488           -        (208)    195,221   Direct cost of    sales, general    and admini-    strative    expenses         44,796      88,776       4,434        (208)    137,798   -------------------------------------------------------------------------   Segment profit    15,145      46,712      (4,434)          -      57,423   Depreciation       1,848       2,634       1,236           -       5,718   Interest expense     231       1,296       6,886           -       8,413   Goodwill and    broadcast license    impairment            -           -           -           -           -   Disputed    regulatory fees     563         507           -           -       1,070   Other expense,    net               5,294       5,818      (1,405)          -       9,707   -------------------------------------------------------------------------   Income before    income taxes and    non-controlling    interest          7,209      36,457     (11,151)          -      32,515   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Three months ended August 31, 2008                                                          Elimi-        Con-                      Radio  Television   Corporate     nations   solidated   -------------------------------------------------------------------------   Revenues          68,482     117,349           -         (57)    185,774   Direct cost of    sales, general    and admini-    strative    expenses         53,423      78,953       6,220         (57)    138,539   -------------------------------------------------------------------------   Segment profit    15,059      38,396      (6,220)          -      47,235   Depreciation       1,745       2,864       1,192           -       5,801   Interest expense     263       1,118       8,525           -       9,906   Disputed    regulatory fees     734         468           -           -       1,202   Other expense,    net               3,757       1,206      (1,098)          -       3,865   -------------------------------------------------------------------------   Income before    income taxes and    non-controlling    interest          8,560      32,740     (14,839)          -      26,461   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Twelve months ended August 31, 2009                                                          Elimi-        Con-                      Radio  Television   Corporate     nations   solidated   -------------------------------------------------------------------------   Revenues         258,912     530,014           -        (208)    788,718   Direct cost of    sales, general    and admini-    strative    expenses        198,574     320,869      18,293        (208)    537,528   -------------------------------------------------------------------------   Segment profit    60,338     209,145     (18,293)          -     251,190   Depreciation       6,798       9,593       4,313           -      20,704   Interest expense     928       5,163      31,335           -      37,426   Goodwill and    broadcast license    impairment      175,000           -           -           -     175,000   Disputed    regulatory fees   2,746       2,512           -           -       5,258   Other expense,    net               7,888         853        (313)          -       8,428   -------------------------------------------------------------------------   Income before    income taxes and    non-controlling    interest       (133,022)    191,024     (53,628)          -       4,374   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Twelve months ended August 31, 2008                                                          Elimi-        Con-                      Radio  Television   Corporate     nations   solidated   -------------------------------------------------------------------------   Revenues         286,449     500,966           -        (259)    787,156   Direct cost of    sales, general    and admini-    strative    expenses        210,945     301,361      22,979        (259)    535,026   -------------------------------------------------------------------------   Segment profit    75,504     199,605     (22,979)          -     252,130   Depreciation       6,533      10,473       5,048           -      22,054   Interest expense   1,042       4,643      35,628           -      41,313   Disputed    regulatory fees   6,155       4,781           -           -      10,936   Other expense,    net               3,594       6,855      (2,596)          -       7,853   -------------------------------------------------------------------------   Income before    income taxes and    non-controlling    interest         58,180     172,853     (61,059)          -     169,974   -------------------------------------------------------------------------   -------------------------------------------------------------------------                             CORUS ENTERTAINMENT INC.                    SUPPLEMENTAL FINANCIAL INFORMATION                                  Three months ended     Twelve months ended   (unaudited)                        August 31,              August 31,   (in thousands of            ---------------------------------------------    Canadian dollars)              2009        2008        2009        2008   -------------------------------------------------------------------------   Interest expense   Interest on long-term debt     6,398       7,913      29,350      33,049   Imputed interest on long-    term liabilities              1,910       1,662       7,054       6,390   Other interest                   105         331       1,022       1,874   -------------------------------------------------------------------------                                  8,413       9,906      37,426      41,313   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Other expense, net   Interest income                 (180)       (437)     (1,206)     (1,042)   Foreign exchange losses (gains) (139)        500       1,739         823   Losses from equity investments   224         456         318       1,343   Restructuring charges          5,440       3,329       8,632       6,142   Gain on disposal                   -           -      (7,163)          -   Investment impairment          3,799           -       6,228           -   Other                            563          17        (120)        587   -------------------------------------------------------------------------                                  9,707       3,865       8,428       7,853   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Free cash flow   Cash provided by (used in):   Operating activities          31,940      54,196     113,239     130,578   Investing activities         (15,013)    (83,720)    (19,864)   (101,520)   -------------------------------------------------------------------------                                 16,927     (29,524)     93,375      29,058   -------------------------------------------------------------------------   -------------------------------------------------------------------------    Consolidated statements of    cash flows   Interest paid                  6,479       8,129      31,178      35,031   Interest received                180         437       1,206       1,042   Income taxes paid             18,214      10,580      50,104      46,796   -------------------------------------------------------------------------   -------------------------------------------------------------------------  

First Call Analyst:
FCMN Contact:

Source: Corus Entertainment Inc.

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

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