Corus Entertainment Announces Fiscal 2016 Second Quarter Results

Corus Entertainment Announces Fiscal 2016 Second Quarter Results


-- Consolidated revenues up 3% for the quarter and 2% for the year-to-date
-- Consolidated segment profit((1)) up 33% (10% adjusted((1)(2))) for the
quarter and 15% (4% adjusted((1)(2))) for the year-to-date
-- Net earnings attributable to shareholders of $102.2 million ($1.17 per
share basic) for the quarter and $143.6 million ($1.64 per share basic)
for the year-to-date
-- Adjusted basic earnings per share((1)(2)) of $0.24 per share for the
quarter and $0.72 per share for the year-to-date
-- Completed Shaw Media Inc. acquisition on April 1, 2016


TORONTO, April 13, 2016 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

"We have delivered revenue and segment profit growth for the second consecutive quarter, driven by the launch of new specialty television services and digital distribution revenues," said Doug Murphy, President and Chief Executive Officer, Corus Entertainment. "With the completion of our transformational acquisition of Shaw Media on April 1(st), we are fully focused on quickly integrating our operations, capturing significant synergies and unlocking the future growth potential of these powerful media assets."






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

Three months ended Six months ended

February 29, February February February
28, 29, 28,

(unaudited
-in
thousands
of
Canadian
dollars
except
per
share
amounts) 2016 2015 2016 2015
------------- ---- ---- ---- ----

Revenues

Television 163,432 155,175 347,150 336,665

Radio 34,273 36,309 78,873 81,930
----- ------ ------ ------ ------

197,705 191,484 426,023 418,595
======= ======= ======= =======


Segment
profit(1)

Television 81,405 59,700 169,440 143,479

Radio 5,182 6,227 17,985 19,047

Corporate (7,008) (6,208) (11,968) (9,531)
--------- ------ ------ ------- ------

79,579 59,719 175,457 152,995
====== ====== ======= =======


Net
income
(loss)
attributable
to
shareholders 102,232 (86,786) 143,552 (34,880)

Adjusted
net
income
attributable
to
shareholders(1)
(2) 20,944 28,499 63,428 80,405
=============== ====== ====== ====== ======


Basic
earnings
(loss)
per
share $1.17 $(1.01) $1.64 $(0.41)

Adjusted
basic
earnings
per
share(1)
(2) $0.24 $0.33 $0.72 $0.93

Diluted
earnings
(loss)
per
share $1.17 $(1.01) $1.63 $(0.41)
========= ===== ====== ===== ======


Free
cash
flow(1) 24,284 59,242 58,821 92,624
======== ====== ====== ====== ======


(1) Segment profit, adjusted segment
profit, adjusted net income (loss)
attributable to shareholders,
adjusted basic earnings per share,
and free cash flow do not have
standardized meanings prescribed
by IFRS. The Company believes
these non-IFRS measures are
frequently used as key measures to
evaluate performance. For
definitions and explanations, see
discussion under the Key
Performance Indicators section of
the Fiscal 2016 Report to
Shareholders.

(2) For the three months ended February
29, 2016, segment profit has been
adjusted to include amortization
of disposed Pay TV programming
assets of $14.2 million ($0.12 per
share), while adjusted net income
attributable to shareholders
includes the preceding as well as
excludes business acquisition,
integration and restructuring
charges of $6.0 million ($0.06 per
share) and a gain on the disposal
of the Pay TV disposal group of
$86.2 million ($0.87 per share).
For the six months ended February
29, 2016, segment profit has been
adjusted to include amortization
of disposed Pay TV programming
assets of $15.6 million ($0.13 per
share), while adjusted net income
attributable to shareholders
includes the preceding as well as
excludes business acquisition,
integration and restructuring
charges of $8.4 million ($0.08 per
share) and a gain on the disposal
of the Pay TV disposal group of
$86.2 million ($0.87 per share).
For the three and six months ended
February 28, 2015, adjusted net
income attributable to
shareholders excludes radio
broadcast license and goodwill
impairment charges of $130.0
million ($1.44 per share),
business acquisition, integration
and restructuring charges of $8.0
million ($0.07 per share), offset
by a gain on distribution of
investment of $17.0 million ($0.17
per share).


Consolidated Results from Operations

Consolidated revenues for the three months ended February 29, 2016 were $197.7 million, up 3% from $191.5 million last year. Consolidated segment profit was $79.6 million, up 33% from $59.7 million last year, however, excludes amortization of disposed Pay TV program and film rights of $14.2 million. Adjusting for this, segment profit would be $65.4 million, up 10% from last year. Net income attributable to shareholders for the quarter was $102.2 million ($1.17 per share basic and diluted), as compared to a net loss of $86.8 million ($1.01 loss per share basic and diluted) last year. Net income attributable to shareholders for the second quarter of fiscal 2016 includes business acquisition, integration and restructuring costs of $6.0 million ($0.06 per share), a gain on the disposal of the Pay Television disposal group of $86.2 million ($0.87 per share), and excludes amortization of Pay Television program and film rights of $14.2 million ($0.12 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $20.9 million ($0.24 per share basic) in the quarter. Net loss attributable to shareholders for the prior year quarter includes radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), business acquisition, integration and restructuring costs of $8.0 million ($0.07 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 $28.5 million ($0.33 per share) in the prior year quarter.

Consolidated revenues for the six months ended February 29, 2016 were $426.0 million, up 2% from $418.6 million last year. Consolidated segment profit was $175.5 million, up 15% from $153.0 million last year, however, excludes amortization of disposed Pay TV program rights of $15.6 million. Adjusting for this, segment profit would be $159.9 million, up 4% from last year. Net income attributable to shareholders for the six months ended February 29, 2016 was $143.6 million ($1.64 per share basic and diluted), compared to a net loss of $34.9 million ($0.41 loss per share basic and diluted) last year. Net income attributable to shareholders for the six months ended February 29, 2016 includes business acquisition, integration and restructuring costs of $8.4 million ($0.08 per share), a gain on the disposal of the Pay Television disposal group of $86.2 million ($0.87 per share), and excludes amortization of Pay Television program and film rights of $15.6 million ($0.13 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $63.4 million ($0.72 per share basic) for the current year-to-date. Net loss attributable to shareholders for the six months ended February 28, 2015 includes Radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), business acquisition, integration and restructuring costs of $8.0 million ($0.07 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 $80.4 million ($0.93 per share) for the prior year-to-date.

For fiscal 2016, certain of Corus' Pay Television business ("Pay TV") assets and liabilities were reclassified as held for disposal effective November 19, 2015 as a consequence of meeting the definition of assets held for sale under International Financial Reporting Standard 5 - Non-current Assets Held for Sale and Discontinued Operations. The Company's business activities are conducted through two operating segments, Television and Radio. The disposal group, Pay TV, is not a separate operating segment, but it is included as part of the Television operating segment. Accordingly, the disposal group, Pay TV, did not qualify for discontinued operations presentation, and as a result, its operating results remained in continuing operations in the consolidated statement of income and comprehensive income for the six months ended February 29, 2016. On February 29, 2016, the Pay TV disposition was completed and the related proceeds associated with this disposal group were recognized. Further discussion is provided in note 16 of the Company's interim consolidated financial statements for the period ended February 29, 2016.

Operational Results - Highlights

Television


-- Specialty advertising revenues decreased 8% in Q2 2016 and 7% for the
year-to-date
-- Subscriber revenues increased 5% in Q2 2016, and increased 3% for the
year-to-date
-- Merchandising, distribution and other revenues increased 40% in Q2 2016
and 37% for the year-to-date
-- Segment profit((1)) increased 36% in Q2 2016 and 18% for the
year-to-date
-- Adjusted segment profit((1)(2)) increased 13% in Q2 2016 and 7% for the
year-to-date
-- Ceased Pay TV operations February 29, 2016


Radio


-- Segment revenues decreased 6% in Q2 2016 and 4% for the year-to-date
-- Segment profit((1)) decreased 17% in Q2 2016 and 6% for the year-to-date
-- Segment profit margin((1)) of 15% in Q2 2016 and 23% for the
year-to-date


Corporate


-- Free cash flow((1)) of $58.8 million for the year-to-date
-- Completed acquisition of Shaw Media Inc. on April 1, 2016




(1) Segment profit, adjusted segment
profit, segment profit margin and
free cash flow do not have
standardized meanings prescribed
by IFRS. . The Company believes
these non-IFRS measures are
frequently used as key measures to
evaluate performance. For
definitions and explanations, see
discussion under the Key
Performance Indicators section of
the 2016 Report to Shareholders.

(2) For the three and six months ended
February 29, 2016, segment profit
has been adjusted to include
amortization of disposed Pay TV
programming assets of $14.2
million and $15.6 million,
respectively.


Corus Entertainment Inc. reports in Canadian dollars.

The unaudited consolidated financial statements and accompanying notes for the three and six months ended February 29, 2016 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 April 13, 2016 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 1.416.981.9019 and for North America is 1.800.920.5564. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-IFRS Financial Measures

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

Non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders 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 others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Corus disclaims 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. (TSX: CJR.B) is a leading media and content company that creates and delivers high quality brands and content across platforms for audiences around the world. The company's portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children's book publishing, animation software, technology and media services. Corus' roster of premium brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada. Visit Corus at www.corusent.com.

Follow Corus PR @CorusPR



CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


As at February 29, As at August 31,

(unaudited
-in
thousands
of
Canadian
dollars) 2016 2015
---------- ---- ----

ASSETS

Current

Cash and
cash
equivalents 55,449 37,422

Cash held
in escrow 280,346 -

Accounts
receivable 218,140 164,600

Income
taxes
recoverable - 12,439

Prepaid
expenses
and other 18,544 13,855
---------- ------ ------


Total
current
assets 572,479 228,316
-------- ------- -------


Tax
credits
receivable 25,121 25,958

Intangibles,
investments
and other
assets 163,690 60,589

Property,
plant and
equipment 135,230 139,140

Program
and film
rights 442,717 315,899

Film
investments 47,458 36,549

Broadcast
licenses 906,590 956,984

Goodwill 775,687 827,859

Deferred
tax
assets 40,272 40,815
-------- ------ ------

3,109,244 2,632,109
========= =========


LIABILITIES
AND
SHAREHOLDERS'
EQUITY

Current

Accounts
payable
and
accrued
liabilities 241,501 210,971

Current
portion
of long-
term debt 550,000 150,000

Income
taxes
payable 25,876 -

Provisions 5,983 8,930
---------- ----- -----

Total
current
liabilities 823,360 369,901
------------ ------- -------


Long-term
debt 63,037 651,002

Other
long-
term
liabilities 380,764 138,833

Liabilities
for
subscription
receipts 280,346 -

Deferred
tax
liabilities 240,194 252,462
------------ ------- -------

Total
liabilities 1,787,701 1,412,198
------------ --------- ---------


SHAREHOLDERS'
EQUITY

Share
capital 1,004,312 994,571

Contributed
surplus 9,927 9,471

Retained
earnings 284,700 191,182

Accumulated
other
comprehensive
income 8,014 7,353
------------- ----- -----

Total
equity
attributable
to
shareholders 1,306,953 1,202,577

Equity
attributable
to non-
controlling
interest 14,590 17,334
------------- ------ ------

Total
shareholders'
equity 1,321,543 1,219,911
-------------- --------- ---------

3,109,244 2,632,109
========= =========




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


Three months ended Six months ended

February 29, February 28, February 29, February 28,

(unaudited - in thousands of Canadian dollars except per share amounts) 2016 2015 2016 2015
---------------------------------------------------------------------- ---- ---- ---- ----

Revenues 197,705 191,484 426,023 418,595

Direct cost of sales, general and administrative expenses 118,126 131,765 250,566 265,600

Depreciation and amortization 10,606 6,089 21,608 11,863

Interest expense 18,487 12,746 37,377 25,427

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

Business acquisition, integration and restructuring costs 6,014 8,002 8,375 8,002

Gain on disposition (86,151) - (86,151) -

Other (income) expense, net 5,129 (15,902) 9,054 (14,096)
--------------------------- ----- ------- ----- -------


Income (loss) before income taxes 125,494 (81,216) 185,194 (8,201)

Income tax expense 22,360 4,643 39,237 24,476


Net income (loss) for the period 103,134 (85,859) 145,957 (32,677)
================================ ======= ======= ======= =======


Net income (loss) attributable to:

Shareholders 102,232 (86,786) 143,552 (34,880)

Non-controlling interest 902 927 2,405 2,203
------------------------ --- --- ----- -----

103,134 (85,859) 145,957 (32,677)
======= ======= ======= =======


Earnings (loss) per share attributable to shareholders:

Basic $1.17 $(1.01) $1.64 $(0.41)

Diluted $1.17 $(1.01) $1.63 $(0.41)
======= ===== ====== ===== ======


Net income (loss) for the period 103,134 (85,859) 145,957 (32,677)

Other comprehensive income (loss), net of tax

Items that may be reclassified subsequently to income:

Unrealized foreign currency translation adjustment 167 2,437 466 3,667

Unrealized change in fair value of available-for-sale investments (8) 170 (124) (140)

Realized change in fair value of cash flow hedges 105 (416) 319 (454)
------------------------------------------------- --- ---- --- ----

264 2,191 661 3,073
--- ----- --- -----


Comprehensive income (loss) for the period 103,398 (83,668) 146,618 (29,604)
========================================== ======= ======= ======= =======


Comprehensive income (loss) attributable to:

Shareholders 102,496 (84,595) 144,213 (31,807)

Non-controlling interest 902 927 2,405 2,203
------------------------ --- --- ----- -----

103,398 (83,668) 146,618 (29,604)
======= ======= ======= =======




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


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


At August 31, 2015 994,571 9,471 191,182 7,353 1,202,577 17,334 1,219,911

Comprehensive income - - 143,552 661 144,213 2,405 146,618

Dividends declared - - (50,034) - (50,034) (5,149) (55,183)

Issuance of shares under dividend reinvestment plan 9,741 - - - 9,741 - 9,741

Share-based compensation expense - 456 - - 456 - 456
-------------------------------- --- --- --- --- --- --- ---

At February 29, 2016 1,004,312 9,927 284,700 8,014 1,306,953 14,590 1,321,543
==================== ========= ===== ======= ===== ========= ====== =========



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

Comprehensive income (loss) - - (34,880) 3,073 (31,807) 2,203 (29,604)

Dividends declared - - (48,113) - (48,113) (4,553) (52,666)

Issuance of shares under stock option plan 5,781 (945) - - 4,836 - 4,836

Issuance of shares under dividend reinvestment plan 11,347 - - - 11,347 - 11,347

Share-based compensation expense - 1,466 - - 1,466 - 1,466
-------------------------------- --- ----- --- --- ----- --- -----

At February 28, 2015 984,458 8,906 230,368 6,840 1,230,572 14,933 1,245,505
==================== ======= ===== ======= ===== ========= ====== =========




CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS


Three months ended Six months ended

February 29, February 28, February 29, February 28,

(unaudited -in thousands of
Canadian dollars) 2016 2015 2016 2015
--------------------------- ---- ---- ---- ----

OPERATING ACTIVITIES

Net income (loss) for the
period 103,134 (85,859) 145,957 (32,677)

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

Depreciation and amortization 10,606 6,089 21,608 11,863

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

Amortization of program and film
rights 43,990 53,366 98,253 107,703

Amortization of film investments 4,213 6,692 7,544 13,613

Deferred income taxes (13,845) (3,864) (11,907) (1,017)

Share-based compensation expense 189 937 456 1,466

Imputed interest 10,780 3,481 21,231 6,977

Gain on disposition of investment - (16,964) (533) (16,964)

Gain on disposition (86,151) - (86,151) -

Business acquisition costs paid 2,718 - 2,718 -

Other 3,031 1,406 3,229 1,888

Net change in non-cash
working capital balances
related to operations 29,062 11,594 (763) (14,855)

Payment of program and film
rights (67,385) (46,064) (112,514) (96,481)

Net additions to film
investments (8,854) (10,031) (18,681) (23,846)
--------------------- ------ ------- ------- -------

Cash provided by operating
activities 31,488 50,783 70,447 87,670
-------------------------- ------ ------ ------ ------


INVESTING ACTIVITIES

Additions to property, plant
and equipment (4,153) (4,931) (6,856) (7,754)

Net proceeds from
disposition 188,374 - 209,474 -

Business combinations - - (2,476) -

Business acquisition costs
paid (2,718) - (2,718) -

Proceeds from disposition of
investment - 18,490 1,684 18,490

Net cash flows for
intangibles, investments
and other assets (4,488) (2,425) (7,151) (17,586)

Other (1,952) (4,737) (4,280) (5,248)
----- ------ ------ ------ ------

Cash provided by (used in)
investing activities 175,063 6,397 187,677 (12,098)
-------------------------- ------- ----- ------- -------


FINANCING ACTIVITIES

Decrease in bank loans (168,735) (29,688) (188,734) (9,897)

Financing fees (3,428) (750) (3,428) (750)

Issuance of shares under
stock option plan - 3,417 - 4,836

Dividends paid (18,818) (17,982) (40,116) (35,901)

Dividends paid to non-
controlling interest (1,000) (419) (5,149) (4,553)

Issue of subscription
receipts 280,346 - 280,346 -

Other (1,291) (1,385) (2,670) (2,679)
----- ------ ------ ------ ------

Cash provided by (used in)
financing activities 87,074 (46,807) 40,249 (48,944)
-------------------------- ------ ------- ------ -------

Net change in cash and cash
equivalents

during the period 293,625 10,373 298,373 26,628

Less: cash held in escrow (280,346) - (280,346) -

Cash and cash equivalents,
beginning of the period 42,170 27,840 37,422 11,585

Cash and cash equivalents,
end of the period 55,449 38,213 55,449 38,213
========================== ====== ====== ====== ======




CORUS ENTERTAINMENT INC.

BUSINESS SEGMENT INFORMATION


(unaudited - in thousands of Canadian dollars)


Three months ended February 29, 2016

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

Revenues 163,432 34,273 - 197,705

Direct cost of sales, general and administrative expenses 82,027 29,091 7,008 118,126
---------------------------------- ------ ------ ----- -------

Segment profit (loss)(1) 81,405 5,182 (7,008) 79,579

Depreciation and amortization 10,606

Interest expense 18,487

Business acquisition,
integration and restructuring
costs 6,014

Gain on disposition (86,151)

Other expense, net 5,129
------------------ -----

Income before income taxes 125,494
========================== =======


Three months ended February 28, 2015

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

Revenues 155,175 36,309 - 191,484

Direct cost of sales, general and administrative expenses 95,475 30,082 6,208 131,765
---------------------------------- ------ ------ ----- -------

Segment profit (loss)(1) 59,700 6,227 (6,208) 59,719

Depreciation and amortization 6,089

Interest expense 12,746

Broadcast license and goodwill
impairment 130,000

Business acquisition,
integration and restructuring
costs 8,002

Other income, net (15,902)
----------------- -------

Loss before income taxes (81,216)
======================== =======


Six months ended February 29,
2016

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

Revenues 347,150 78,873 - 426,023

Direct cost of sales, general and administrative expenses 177,710 60,888 11,968 250,566
---------------------------------- ------- ------ ------ -------

Segment profit (loss)(1) 169,440 17,985 (11,968) 175,457

Depreciation and amortization 21,608

Interest expense 37,377

Business acquisition,
integration and restructuring
costs 8,375

Gain on disposition (86,151)

Other expense, net 9,054
------------------ -----

Income before income taxes 185,194
========================== =======


Six months ended February 28,
2015

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

Revenues 336,665 81,930 - 418,595

Direct cost of sales, general and administrative expenses 193,186 62,883 9,531 265,600
---------------------------------- ------- ------ ----- -------

Segment profit (loss)(1) 143,479 19,047 (9,531) 152,995

Depreciation and amortization 11,863

Interest expense 25,427

Broadcast license and goodwill
impairment 130,000

Business acquisition,
integration and restructuring
costs 8,002

Other income, net (14,096)
----------------- -------

Loss before income taxes (8,201)
======================== ======


(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 Six months ended

February 29, February 28, February 29, February 28,

2016 2015 2016 2015
---- ---- ---- ----

Advertising 75,039 81,309 190,380 202,275

Subscriber fees 89,645 85,245 176,599 170,659

Merchandising,
distribution and
other 33,021 24,930 59,044 45,661
----------------- ------ ------ ------ ------

197,705 191,484 426,023 418,595
======= ======= ======= =======







CORUS ENTERTAINMENT INC.

Non-IFRS Financial Measures

Three months ended Six months ended

February
29, February 28, February 29, February 28,

Adjusted segment profit 2016 2015 2016 2015
----------------------- ---- ---- ---- ----


Segment profit 79,579 59,719 175,457 152,995

Adjustments:

Amortization of disposed
programming assets (14,185) - (15,585) -
------------------------- ------- --- ------- ---

Adjusted segment
profit 65,394 59,719 159,872 152,995
================ ====== ====== ======= =======



Adjusted net income attributable to
shareholders
-----------------------------------

Net income
(loss)
attributable to
shareholders 102,232 (86,786) 143,552 (34,880)

Adjustments, net
of tax:

Gain on disposal of Pay TV
disposal group (76,631) - (76,631) -

Amortization of disposed
programming assets (10,426) - (11,455) -

Impact of business acquisition,
integration and restructuring
charges 5,769 6,017 7,962 6,017

Broadcast license and goodwill
impairment charges - 123,984 - 123,984

Gain from disposition of
investment - (14,716) - (14,716)
------------------------- --- ------- --- -------

Adjusted net
income
attributable to
shareholders 20,944 28,499 63,428 80,405
================ ====== ====== ====== ======


Adjusted basic EPS $0.24 $0.33 $0.72 $0.93
================== ===== ===== ===== =====

Free cash flow
--------------

Cash provided by
(used in):

Operating
activities 31,488 50,783 70,447 87,670

Investing
activities 175,063 6,397 187,677 (12,098)
---------- ------- ----- ------- -------

206,551 57,180 258,124 75,572

Add back: Cash
used for
business
combinations
and strategic
investments (1) 6,107 2,062 10,171 17,052

Net proceeds
from
disposition (188,374) - (209,474) -
------------- -------- --- -------- ---

Free cash flow 24,284 59,242 58,821 92,624
============== ====== ====== ====== ======


(1)
Strategic
investments
are
comprised
of
investments
in venture
funds and
associated
companies.


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, Vice President, Communications, Corus Entertainment Inc., 416.479.6107

Web Site: www.corusent.com


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