Corus Entertainment Announces Fiscal 2015 Third Quarter Results

Corus Entertainment Announces Fiscal 2015 Third Quarter Results


-- Free cash flow of $156.0 million year-to-date
-- Landmark multi-year licensing agreements completed with Nickelodeon and
Disney
-- Consolidated revenues down 5% for the quarter and 2% year-to-date
-- Consolidated segment profit down 14% for the quarter and 4% year-to-date
-- Net loss attributable to shareholders of $8.1 million for the quarter,
which includes a non-cash program rights and film investments impairment
charge of $51.8 million
-- Adjusted basic earnings per share of $0.36 per share, down 27% for the
quarter
TORONTO, July 15, 2015 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.

"While our third quarter operating results were disappointing, we were pleased to deliver solid year-to-date free cash flow of $156 million," said Doug Murphy, President and Chief Executive Officer of Corus Entertainment. "Over the next 18 months, our focus will be to fortify our brands and competitive position by leveraging our strategic investments in premium content across platforms and delivery systems. We have already made significant progress, inking ground-breaking content and rights deals with Nickelodeon and Disney, and expanding our digital presence in Radio and Television, most recently with the launch of the first in our suite of innovative kids TV Everywhere apps, TreehouseGO. We are confident that we are on the right track to deepen our engagement with audiences and evolve the company for future growth in a dynamic, consumer-centric marketplace."






Financial Highlights
--------------------


Three months ended Nine months ended

May 31, May 31,

(unaudited - in thousands of Canadian dollars except per share amounts) 2015 2014 2015 2014
---------------------------------------------------------------------- ---- ---- ---- ----

Revenues

Television 162,767 170,565 499,432 500,615

Radio 40,354 43,476 122,284 130,844
----- ------ ------ ------- -------

203,121 214,041 621,716 631,459
======= ======= ======= =======


Segment profit(1)

Television 64,075 75,679 207,554 216,237

Radio 9,457 11,678 28,504 35,985

Corporate (4,833) (7,626) (14,364) (20,933)
--------- ------ ------ ------- -------

68,699 79,731 221,694 231,289
====== ====== ======= =======


Net income (loss) attributable to shareholders (8,109) (30,325) (42,989) 126,682

Adjusted net income attributable to shareholders(1) (2) 31,550 41,602 111,955 123,560
====================================================== ====== ====== ======= =======


Basic earnings (loss) per share $(0.09) $(0.36) $(0.50) $1.49

Adjusted basic earnings per share(1) (2) $0.36 $0.49 $1.30 $1.46

Diluted earnings (loss) per share $(0.09) $(0.36) $(0.50) $1.49
================================= ====== ====== ====== =====


Free cash flow(1) 63,419 59,399 156,043 182,440
================ ====== ====== ======= =======


(1) Adjusted net
income
attributable
to
shareholders,
adjusted
basic
earnings per
share,
segment
profit, and
free cash
flow do not
have
standardized
meanings
prescribed by
IFRS. The
Company
reports on
segment
profit and
free cash
flow because
they are key
measures used
to evaluate
performance.
For
definitions
and
explanations,
see
discussion
under the Key
Performance
Indicators
section of
the 2015
Report to
Shareholders.

(2) For the three
months ended
May 31, 2015,
excludes
intangible
asset
impairment
charges of
$51.8 million
($0.44 per
share) and
business
acquisition,
integration
and
restructuring
charges of
$2.7 million
($0.02 per
share). For
the nine
months ended
May 31, 2015,
excludes
radio
broadcast
license and
goodwill
impairment
charges of
$130.0
million
($1.44 per
share),
intangible
asset
impairment
charges of
$51.8 million
($0.44 per
share),
business
acquisition,
integration
and
restructuring
charges of
$10.7 million
($0.09 per
share),
offset by a
gain on
distribution
of investment
of $17.0
million
($0.17 per
share). For
the three
months ended
May 31, 2014,
excludes
radio
broadcast
license and
goodwill
impairment
charges of
$75.0 million
($0.85 per
share),
business
acquisition,
integration
and
restructuring
costs of $0.6
million
($0.01 per
share),
capital asset
impairment
charges of
$1.2 million
($0.01 per
share) and a
decrease in
the purchase
price
obligation of
$2.0 million
($0.02 per
share). For
the nine
month period
ended May 31,
2014,
excludes the
impact of
$127.9
million
($1.51 per
share) gain
on
remeasurement
to fair value
of the
Company's 50%
interest in
TELETOON
which was
held prior to
consolidation
on September
1, 2013,
radio
broadcast
license and
goodwill
impairment
charges of
$83.0 million
($0.92 per
share),
capital asset
impairment
charges of
$1.2 million
($0.01 per
share),
business
acquisition,
integration
and
restructuring
costs of
$41.2 million
($0.47 per
share), an
increase in
the purchase
price
obligation of
$3.3 million
($0.04 per
share), and
investment
impairment
related
charges of
$3.3 million
($0.04 per
share).


Consolidated Results from Operations

Consolidated revenues for the three months ended May 31, 2015 were $203.1 million, down 5% from $214.0 million last year. Consolidated segment profit was $68.7 million, down 14% from $79.7 million last year. Net loss attributable to shareholders for the quarter was $8.1 million ($0.09 loss per share basic and diluted), compared to $30.3 million ($0.36 loss per share basic and diluted) last year. Net loss attributable to shareholders for the third quarter includes intangible non-cash impairment charges of $51.8 million ($0.44 per share) and business acquisition, integration and restructuring costs of $2.7 million ($0.02 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $31.6 million ($0.36 per share) in the quarter. Net income attributable to shareholders for the prior year quarter includes radio broadcast license and goodwill impairment charges of $75.0 million ($0.85 per share), capital asset impairment charges of $1.2 million ($0.01 per share), business acquisition, integration and restructuring costs of $0.6 million ($0.01 per share) and a decrease in the purchase price obligation of $2.0 million related to the acquisition of control of TELETOON ($0.02 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $41.6 million ($0.49 per share basic) for the prior year quarter.

Consolidated revenues for the nine months ended May 31, 2015 were $621.7 million, down 2% from $631.5 million last year. Consolidated segment profit was $221.7 million, down 4% from $231.3 million last year. Net loss attributable to shareholders for the nine months ended May 31, 2015 was $43.0 million ($0.50 loss per share basic and diluted) compared to net income attributable to shareholders of $126.7 million ($1.49 per share basic and diluted) last year. Net loss attributable to shareholders for the nine months ended May 31, 2015 includes Radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), business acquisition, integration and restructuring costs of $10.7 million ($0.09 per share), and program right and film investment impairment charges of $51.8 million ($0.44 per share), offset by a gain on disposition of investment of $17.0 million ($0.17 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $112.0 million ($1.30 per share) for the current year-to-date. Net income attributable to shareholders for the nine months ended May 31, 2014 includes a non-cash gain of $127.9 million ($1.51 per share) resulting from the remeasurement to fair value of the Company's 50% interest in TELETOON which was held prior to consolidation on September 1, 2013, radio broadcast license and goodwill impairment charges of $83.0 million ($0.92 per share), capital asset impairment charges of $1.2 million ($0.01 per share), business acquisition, integration and restructuring costs of $41.2 million ($0.47 per share), an increase in the purchase price obligation of $3.3 million ($0.04 per share) and investment impairment related charges of $3.3 million ($0.04 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $123.6 million ($1.46 per share) for the prior year-to-date.

Operational Results - Highlights

Television


-- Specialty advertising revenues decreased 11% in Q3 2015 and 5% for the
year-to-date
-- Subscriber revenues decreased 3% in Q3 2015, but increased 2% for the
year-to-date
-- Merchandising, distribution and other revenues increased 15% in Q3 2015
and 9% for the year-to-date
-- Segment profit((1)) decreased 15% in Q3 2015 and 4% for the year-to-date
-- Segment profit margin((1)) of 39% in Q3 2015 and 42% for the
year-to-date
-- Non-cash program rights and film investments impairment charges of $51.8
million in Q3 2015
Radio


-- Segment revenues decreased 7% in Q3 2015 and for the year-to-date
-- Segment profit((1)) decreased 19% in Q3 2015 and 21% for the
year-to-date
-- Segment profit margin((1)) of 23% in Q3 2015 and for the year-to-date
-- Non-cash broadcast license and goodwill impairment charges of $130.0
million for the 2015 year-to-date
Corporate


-- Free cash flow of $156.0 million for the year-to-date
-- Free cash flow guidance remains unchanged at $180 million, refer to
Outlook section of the Third Quarter 2015 Report to Shareholders


(1) Segment profit and segment profit
margin do not have standardized
meanings prescribed by IFRS.
The Company reports on segment
profit and segment profit margin
because they are key measures
used to evaluate performance.
For definitions and
explanations, see discussion
under the Key Performance
Indicators section of the 2015
Report to Shareholders.


Corus Entertainment Inc. reports in Canadian dollars.

The unaudited consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2015 and Management's Discussion and Analysis are 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 July 15, 2015 at 2:00 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 local and international callers is 1.416.641.6701 and for North America is 1.800.734.8582. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-GAAP Financial Measures

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

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

Caution Concerning Forward-Looking Statements

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 relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, distribution, 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, distribution, 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 other 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.

About Corus Entertainment Inc.

Corus Entertainment Inc. is a Canadian-based media and entertainment company that creates, broadcasts and licenses content across a variety of platforms for audiences around the world. The Company's portfolio of multimedia offerings encompasses specialty television and radio with additional assets in pay television, television broadcasting, children's book publishing, children's animation and animation software. Corus' brands include YTV, TELETOON, ABC Spark, W Network, OWN: Oprah Winfrey Network (Canada), HBO Canada, Historia and Séries+, as well as Nelvana, Kids Can Press, Toon Boom and 39 radio stations including CKNW AM 980, Rock 101, Country 105, 630 CHED, Fresh Radio, JUMP! 106.9, Q107 and 102.1 the Edge. A publicly traded company, Corus is listed on the Toronto Stock Exchange (CJR.B). Experience Corus on the web at www.corusent.com.



CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


As at May 31, As at August 31,

(unaudited - in thousands of Canadian dollars) 2015 2014
--------------------------------------------- ---- ----

ASSETS

Current

Cash and cash equivalents 43,848 11,585

Accounts receivable 188,309 183,009

Income taxes recoverable 9,177 9,768

Prepaid expenses and other 11,091 13,032
-------------------------- ------ ------


Total current assets 252,425 217,394
-------------------- ------- -------


Tax credits receivable 33,275 29,044

Intangibles, investments and other assets 59,249 47,630

Property, plant and equipment 141,013 143,618

Program and film rights 323,914 330,437

Film investments 38,696 63,455

Broadcast licenses 956,984 979,984

Goodwill 827,859 934,859

Deferred tax assets 42,099 38,161
------------------- ------ ------

2,675,514 2,784,582
========= =========


LIABILITIES AND SHAREHOLDERS' EQUITY

Current

Accounts payable and accrued liabilities 225,881 170,411

Current portion of long-term debt 150,000 -

Provisions 3,534 5,314
---------- ----- -----

Total current liabilities 379,415 175,725
------------------------- ------- -------


Long-term debt 680,332 874,251

Other long-term liabilities 143,833 171,793

Deferred tax liabilities 252,779 252,687
------------------------ ------- -------

Total liabilities 1,456,359 1,474,456
----------------- --------- ---------


SHAREHOLDERS' EQUITY

Share capital 990,019 967,330

Contributed surplus 9,137 8,385

Retained earnings 197,501 313,361

Accumulated other comprehensive income 6,323 3,767
-------------------------------------- ----- -----

Total equity attributable to shareholders 1,202,980 1,292,843

Equity attributable to non-controlling interest 16,175 17,283
----------------------------------------------- ------ ------

Total shareholders' equity 1,219,155 1,310,126
-------------------------- --------- ---------

2,675,514 2,784,582
========= =========




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


Three months ended Nine months ended

May 31, May 31,

(unaudited - in thousands of Canadian dollars except per share amounts) 2015 2014 2015 2014
---------------------------------------------------------------------- ---- ---- ---- ----

Revenues 203,121 214,041 621,716 631,459

Direct cost of sales, general and administrative expenses 134,422 134,310 400,022 400,170

Depreciation and amortization 6,056 7,385 17,919 18,653

Interest expense 13,140 13,453 38,567 35,327

Broadcast license and goodwill impairment - 75,000 130,000 83,000

Intangible asset impairment 51,786 - 51,786 -

Business acquisition, integration and restructuring costs 2,693 560 10,695 41,216

Gain on acquisition - - - (127,884)

Other (income) expense, net 1,405 (1,489) (12,691) 7,216
--------------------------- ----- ------ ------- -----


Income (loss) before income taxes (6,381) (15,178) (14,582) 173,761

Income tax expense 486 13,691 24,962 43,224


Net income (loss) for the period (6,867) (28,869) (39,544) 130,537
================================ ====== ======= ======= =======


Net income (loss) attributable to:

Shareholders (8,109) (30,325) (42,989) 126,682

Non-controlling interest 1,242 1,456 3,445 3,855
------------------------ ----- ----- ----- -----

(6,867) (28,869) (39,544) 130,537
====== ======= ======= =======


Earnings (loss) per share attributable to shareholders:

Basic $(0.09) $(0.36) $(0.50) $1.49

Diluted $(0.09) $(0.36) $(0.50) $1.49
======= ====== ====== ====== =====


Net income (loss) for the period (6,867) (28,869) (39,544) 130,537

Other comprehensive income (loss), net of tax:

Items that may be reclassified subsequently to income:

Unrealized foreign currency translation adjustment (657) (646) 3,010 1,620

Unrealized change in fair value of available-for-sale investments (51) 392 (191) 454

Unrealized change in fair value of cash flow hedges 191 37 (263) (109)
--------------------------------------------------- --- --- ---- ----

(517) (217) 2,556 1,965
---- ---- ----- -----


Comprehensive income (loss) for the period (7,384) (29,086) (36,988) 132,502
========================================== ====== ======= ======= =======


Comprehensive income (loss) attributable to:

Shareholders (8,626) (30,542) (40,433) 128,647

Non-controlling interest 1,242 1,456 3,445 3,855
------------------------ ----- ----- ----- -----

(7,384) (29,086) (36,988) 132,502
====== ======= ======= =======




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


(unaudited - in thousands of Canadian dollars) Share Contributed Retained Accumulated Total equity Non- Total
capital surplus earnings other attributable controlling equity
comprehensive to interest
income shareholders
--- ------ ------------


At August 31, 2014 967,330 8,385 313,361 3,767 1,292,843 17,283 1,310,126

Comprehensive income (loss) - - (42,989) 2,556 (40,433) 3,445 (36,988)

Dividends declared - - (72,871) - (72,871) (4,553) (77,424)

Issuance of shares under stock option plan 6,741 (1,090) - - 5,651 - 5,651

Issuance of shares under dividend reinvestment plan 15,948 - - - 15,948 - 15,948

Share-based compensation expense - 1,842 - - 1,842 - 1,842
-------------------------------- --- ----- --- --- ----- --- -----

At May 31, 2015 990,019 9,137 197,501 6,323 1,202,980 16,175 1,219,155
=============== ======= ===== ======= ===== ========= ====== =========



At August 31, 2013 937,183 7,221 256,517 1,653 1,202,574 18,259 1,220,833

Comprehensive income - - 126,682 1,965 128,647 3,855 132,502

Dividends declared - - (68,014) - (68,014) (6,001) (74,015)

Issuance of shares under stock option plan 1,737 (278) - - 1,459 - 1,459

Issuance of shares under dividend reinvestment plan 18,557 - - - 18,557 - 18,557

Share-based compensation expense - 1,489 - - 1,489 - 1,489
-------------------------------- --- ----- --- --- ----- --- -----


At May 31, 2014 957,477 8,432 315,185 3,618 1,284,712 16,113 1,300,825
=============== ======= ===== ======= ===== ========= ====== =========




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS


Three months ended Nine months ended

May 31, May 31,

(unaudited -in thousands
of Canadian dollars) 2015 2014 2015 2014
------------------------- ---- ---- ---- ----

OPERATING ACTIVITIES

Net income (loss) for the
period (6,867) (28,869) (39,544) 130,537

Adjustments to reconcile
net income (loss) to cash
provided by operating
activities:

Depreciation and amortization 6,056 7,385 17,919 18,653

Broadcast license and goodwill
impairment - 75,000 130,000 83,000

Intangible asset impairment 51,786 - 51,786 -

Amortization of program and film
rights 54,078 51,624 161,781 153,768

Amortization of film investments 4,797 4,201 18,410 13,256

Deferred income taxes (2,704) (637) (3,721) 4,384

Increase (decrease) in purchase
price obligation - (1,952) - 3,336

Share-based compensation expense 376 528 1,842 1,489

Imputed interest 4,076 3,840 11,053 10,985

Tangible benefit obligation - - - 31,916

Gain on disposition of investment - - (16,964) -

Gain on acquisition - - - (127,884)

Other 1,677 485 3,565 1,900

Net change in non-cash
working capital balances
related to operations 3,058 14,870 (11,797) 3,312

Payment of program and film
rights (36,182) (43,975) (135,189) (104,653)

Net additions to film
investments (10,867) (19,017) (34,713) (32,765)
--------------------- ------- ------- ------- -------

Cash provided by operating
activities 69,284 63,483 154,428 191,234
-------------------------- ------ ------ ------- -------


INVESTING ACTIVITIES

Additions to property,
plant and equipment (4,941) (3,435) (12,695) (7,715)

Business combinations - (5,265) - (496,706)

Proceeds from disposition
of investment - - 18,490 -

Net cash flows for
intangibles, investments
and other assets (2,969) (2,321) (20,555) (7,395)

Other (668) (201) (3,390) (323)
----- ---- ---- ------ ----

Cash used in investing
activities (8,578) (11,222) (18,150) (512,139)
---------------------- ------ ------- ------- --------


FINANCING ACTIVITIES

Increase (decrease) in bank
loans (34,966) (39,964) (44,863) 333,101

Financing fees - - (750) (587)

Issuance of shares under
stock option plan 815 566 5,651 1,459

Dividends paid (20,100) (16,380) (56,001) (48,316)

Dividends paid to non-
controlling interest - - (4,553) (6,001)

Other (820) (532) (3,499) (1,781)
----- ---- ---- ------ ------

Cash provided by (used in)
financing activities (55,071) (56,310) (104,015) 277,875
-------------------------- ------- ------- -------- -------


Net change in cash and cash
equivalents during the
period 5,635 (4,049) 32,263 (43,030)

Cash and cash equivalents,
beginning of the period 38,213 42,285 11,585 81,266
-------------------------- ------ ------ ------ ------

Cash and cash equivalents,
end of the period 43,848 38,236 43,848 38,236
========================== ====== ====== ====== ======










CORUS ENTERTAINMENT INC.

BUSINESS SEGMENT INFORMATION


(unaudited -in
thousands of
Canadian dollars)


Three months ended
May 31, 2015

Television Radio Corporate Consolidated
---------- ----- --------- ------------

Revenues 162,767 40,354 - 203,121
Direct cost of
sales, general and
administrative
expenses
98,692 30,897 4,833 134,422
--- ------ ------ ----- -------

Segment profit
(loss)(1) 64,075 9,457 (4,833) 68,699

Depreciation and
amortization 6,056

Interest expense 13,140

Intangible asset
impairment 51,786

Business
acquisition,
integration and
restructuring
costs 2,693

Other expense
(income), net 1,405
-------------- -----

Loss before income
taxes (6,381)
================== ======


Three months ended
May 31, 2014

Television Radio Corporate Consolidated
---------- ----- --------- ------------

Revenues 170,565 43,476 - 214,041
Direct cost of
sales, general and
administrative
expenses
94,886 31,798 7,626 134,310
--- ------ ------ ----- -------

Segment profit
(loss)(1) 75,679 11,678 (7,626) 79,731

Depreciation and
amortization 7,385

Interest expense 13,453

Broadcast license
and goodwill
impairment 75,000

Business
acquisition,
integration and
restructuring
costs 560

Other expense
(income), net (1,489)
-------------- ------

Loss before income
taxes (15,178)
================== =======


Nine months ended
May 31, 2015

Television Radio Corporate Consolidated
---------- ----- --------- ------------

Revenues 499,432 122,284 - 621,716
Direct cost of
sales, general and
administrative
expenses
291,878 93,780 14,364 400,022
--- ------- ------ ------ -------

Segment profit
(loss)(1) 207,554 28,504 (14,364) 221,694

Depreciation and
amortization 17,919

Interest expense 38,567

Broadcast license
and goodwill
impairment 130,000

Intangible asset
impairment 51,786

Business
acquisition,
integration and
restructuring
costs 10,695

Other expense
(income), net (12,691)
-------------- -------

Loss before income
taxes (14,582)
================== =======


(1) Segment
profit does
not have a
standardized
meaning
prescribed
by IFRS. For
definitions
and
explanations,
see
discussion
under the
Key
Performance
Indicators
section of
the 2015
Report to
Shareholders.








Nine months ended
May 31, 2014

Television Radio Corporate Consolidated
---------- ----- --------- ------------

Revenues 500,615 130,844 - 631,459
Direct cost of
sales, general
and
administrative
expenses
284,378 94,859 20,933 400,170
--- ------- ------ ------ -------

Segment profit
(loss)(1) 216,237 35,985 (20,933) 231,289

Depreciation and
amortization 18,653

Interest expense 35,327

Broadcast license
and goodwill
impairment 83,000

Gain on
acquisition (127,884)

Business
acquisition,
integration and
restructuring
costs 41,216

Other expense
(income), net 7,216
-------------- -----

Income before
income taxes 173,761
============= =======


(1) Segment
profit does
not have a
standardized
meaning
prescribed
by IFRS. For
definitions
and
explanations,
see
discussion
under the
Key
Performance
Indicators
section of
the 2015
Report to
Shareholders.




Revenues by type

Three months ended Nine months ended

May 31, May 31,

2015 2014 2015 2014
---- ---- ---- ----

Advertising 97,048 108,039 299,323 319,281

Subscriber fees 84,282 86,522 254,941 249,199

Merchandising, distribution and other 21,791 19,480 67,452 62,979
------------------------------------- ------ ------ ------ ------

203,121 214,041 621,716 631,459
======= ======= ======= =======


SOURCE Corus Entertainment Inc.

Corus Entertainment Inc.

CONTACT: Doug Murphy, President and Chief Executive Officer, Corus Entertainment Inc., 416.479.6649; Tom Peddie, Executive Vice President and Chief Financial Officer, Corus Entertainment Inc., 416.479.6080; Sally Tindal, Director, Communications, Corus Entertainment Inc., 416.479.6107

Web Site: www.corusent.com


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