Corus Entertainment announces fiscal 2008 fourth quarter and year-end results



    
    -   Earnings per share of $1.57 for the year, an increase of 24% over the
        prior fiscal year
    -   Segment profit for the year up 5% versus prior year
    -   20% increase in the declared dividend in fiscal 2008
    

    TORONTO, Oct. 23 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B; NYSE:   CJR)
announced its fourth quarter and year-end financial results today, led by
continued growth from its broadcasting businesses.

    "Corus had a strong 2008, growing our revenues and profits as our core
businesses continued to perform well," said John Cassaday, President and Chief
Executive Officer, Corus Entertainment Inc. "We have confidence in our
continued growth, particularly within specialty and pay TV with the addition
of Cosmopolitan TV, VIVA and HBO Canada to our portfolio."

    "We are proud of our fiscal 2008 results," said Heather Shaw, Executive
Chair, Corus Entertainment Inc. "Strong operating results, a 20% dividend
increase, our share-buybacks and our upcoming Dividend Reinvestment Plan
(DRIP) have provided solid value to our shareholders."

    
    Fourth Quarter Results
    ----------------------
    

    Consolidated revenues for the three months ended August 31, 2008 were
$185.8 million, down 1% from $187.2 million last year. Consolidated segment
profit was $47.2 million, up 2% from $46.4 million last year. Net income for
the quarter was $17.4 million ($0.21 basic and diluted), compared to net
income of $21.2 million ($0.25 basic and diluted) last year.

    Corus Television contributed quarterly revenues of $104.8 million, up 1%
from $104.2 million last year, led by specialty advertising growth of 5% and
subscriber revenue growth of 2%. Quarterly segment profit increased to
$35.7 million, up 5% from $34.1 million last year.

    Corus Radio revenues were $68.5 million, up 3% from $66.5 million last
year. Segment profit was $15.1 million down 13% from $17.4 million last year.
    Corus Content revenues were $12.8 million, down 27% from $17.7 million
last year. Segment profit was up 15% to $2.6 million, compared to $2.3 million
last year.

    
    Fiscal 2008 Results
    -------------------
    

    Consolidated revenues for the year ended August 31, 2008 were
$787.2 million, up 2% from $768.7 million last year. Consolidated segment
profit was $252.1 million, up 5% from $240.9 million last year. Net income for
the year was $129.8 million ($1.57 basic and $1.54 diluted), compared to net
income of $107.0 million ($1.27 basic and $1.23 diluted) last year. The
current year benefited from $23.6 million in recoveries related to income tax
changes, and was negatively impacted by an accrual of $10.9 million related to
disputed regulatory fees.

    Corus Television contributed revenues of $450.2 million, up 3% from
$436.3 million last year, led by specialty advertising growth of 4% and
subscriber revenue growth of 2%. Segment profit increased to $191.8 million,
up 5% from $182.4 million last year.

    Corus Radio revenues were $286.4 million, up 4% from $275.7 million last
year. Segment profit was $75.5 million, down 3% from $77.5 million last year.

    Corus Content revenues were $52.0 million, down 15% from $61.3 million
last year. Segment profit was up 32% to $7.2 million, compared to $5.4 million
last year.

    In fiscal 2008, the Company purchased for cancellation 4,388,400 Class B
Non-Voting Shares at an average price of $20.84 per share. In September 2008,
a further 660,466 Class B Non-Voting Shares were purchased and cancelled at an
average price of $19.34 per share.

    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 and digital audio services,
television broadcasting, children's book publishing and children's animation.
The company's multimedia entertainment brands include YTV, Treehouse, W
Network, Movie Central, 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 unaudited consolidated financial statements and accompanying notes
for the quarter ended August 31, 2008 and Management's Discussion and Analysis
are available on the Company's website at
http://www.corusent.com/corporate/investor_information/press_releases.asp.

    A conference call with Corus senior management is scheduled for
October 23, 2008 at 2 p.m. ET / 1 p.m. CT/ Noon MT / 11 a.m. PT. 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 is 1-866-322-1159
(North America) or 416-640-3404. The confirmation code for this call is:
8145792. PowerPoint slides for the call will be posted at 1:45 p.m. ET on
October 23, 2008 and can be found on the Corus Entertainment website at:
    http://www.corusent.com/corporate/investor_information/index.asp.

    This statement 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 arises after the date thereof
or otherwise.



    
                           CORUS ENTERTAINMENT INC.
                         CONSOLIDATED BALANCE SHEETS

                                                           As at       As at
    (unaudited)                                        August 31,  August 31,
    (in thousands of Canadian dollars)                      2008        2007
    -------------------------------------------------------------------------
    ASSETS
    Current
    Cash and cash equivalents                             19,642      33,347
    Accounts receivable                                  157,440     151,380
    Income taxes recoverable                               1,615           -
    Prepaid expenses and other                            10,135      10,921
    Program and film rights                              131,301     125,068
    Future tax asset                                       9,593      13,518
    -------------------------------------------------------------------------
    Total current assets                                 329,726     334,234
    -------------------------------------------------------------------------

    Tax credits receivable                                21,952      16,875
    Investments and other assets                          93,086      17,492
    Property, plant and equipment                         73,562      78,342
    Program and film rights                              103,163      90,687
    Film investments                                      80,819      66,593
    Deferred charges                                           -       4,100
    Broadcast licenses                                   533,491     532,812
    Goodwill                                             797,854     795,832
    -------------------------------------------------------------------------
                                                       2,033,653   1,936,967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Accounts payable and accrued liabilities             196,026     166,083
    Income taxes payable                                       -       1,474
    -------------------------------------------------------------------------
    Total current liabilities                            196,026     167,557
    -------------------------------------------------------------------------

    Long-term debt                                       692,750     610,697
    Other long-term liabilities                           59,936      64,773
    Future tax liability                                  87,699     102,851
    -------------------------------------------------------------------------
    Total liabilities                                  1,036,411     945,878
    -------------------------------------------------------------------------

    Non-controlling interest                              20,237      15,196

    SHAREHOLDERS' EQUITY
    Share capital                                        848,257     882,244
    Contributed surplus                                   17,304      10,250
    Retained earnings                                    131,594      95,568
    Accumulated other comprehensive loss                 (20,150)    (12,169)
    -------------------------------------------------------------------------
    Total shareholders' equity                           977,005     975,893
    -------------------------------------------------------------------------
                                                       2,033,653   1,936,967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                          CORUS ENTERTAINMENT INC.
                      CONSOLIDATED STATEMENTS OF INCOME


    (unaudited)                     Three months ended   Twelve months ended
    (in thousands of Canadian            August 31,            August 31,
     dollars except per share      ------------------------------------------
     amounts)                          2008       2007       2008       2007
    -------------------------------------------------------------------------
    Revenues                        185,774    187,204    787,156    768,743
    Direct cost of sales, general
     and administrative expenses    138,539    140,823    535,026    527,822
    Depreciation                      5,801      5,768     22,054     21,556
    Amortization                          -        300         -       1,555
    Interest expense                  9,906      8,817     41,313     35,838
    Disputed regulatory fees          1,202     (3,803)    10,936          -
    Other expense, net                3,865      2,563      7,853      9,800
    -------------------------------------------------------------------------
    Income before income taxes
     and non-controlling interest    26,461     32,736    169,974    172,172
    Income tax expense                8,395     10,223     35,519     59,813
    Non-controlling interest            660      1,294      4,620      5,341
    -------------------------------------------------------------------------
    Net income for the period        17,406     21,219    129,835    107,018
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share

      Basic                           $0.21      $0.25      $1.57      $1.27
      Diluted                         $0.21      $0.25      $1.54      $1.23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                    Three months ended   Twelve months ended
    (unaudited)                          August 31,            August 31,
    (in thousands of Canadian      ------------------------------------------
     dollars)                          2008       2007       2008       2007
    -------------------------------------------------------------------------
    Net income for the period        17,406     21,219    129,835    107,018
    Other comprehensive loss, net
     of tax
      Unrealized foreign currency
       translation adjustment         1,031       (213)       (23)      (641)
      Unrealized change in fair
       value of available-
       for-sale investments            (176)         -     (1,114)         -
      Unrealized change in fair
       value of cash flow hedges     (2,451)         -    (13,851)         -
    -------------------------------------------------------------------------
                                     (1,596)      (213)   (14,988)      (641)
    -------------------------------------------------------------------------
    Comprehensive income for the
     period                          15,810     21,006    114,847    106,377
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                          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)                          2008       2007       2008       2007
    -------------------------------------------------------------------------
    Share capital
    Balance, beginning of period    865,686    886,139    882,244    870,563
    Issuance of shares under
     stock option plan                1,555      1,284     12,338     27,676
    Shares repurchased              (18,984)    (5,179)   (46,555)   (16,229)
    Repayment of executive stock
     purchase loans                      -          -        230        234
    -------------------------------------------------------------------------
    Balance, end of period          848,257    882,244    848,257    882,244
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Contributed surplus
    Balance, beginning of period     15,741      9,270     10,250      6,878
    Stock-based compensation          1,748      1,027      7,904      4,133
    Exercise of stock options          (185)       (47)      (850)      (761)
    -------------------------------------------------------------------------
    Balance, end of period           17,304     10,250     17,304     10,250
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Retained earnings
    Balance, beginning of period    140,159     91,778     95,568     51,585
    Cumulative impact of
     accounting changes                   -          -     (1,594)         -
    -------------------------------------------------------------------------
    Adjusted opening balance        140,159     91,778      93,974    51,585
    Net income for the period        17,406     21,219     129,835   107,018
    Dividends                       (12,088)   (10,566)    (47,326)  (42,842)
    Share repurchase excess         (13,883)    (6,863)    (44,889)  (20,193)
    -------------------------------------------------------------------------
    Balance, end of period          131,594     95,568     131,594    95,568
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accumulated other
     comprehensive loss
    Balance, beginning of period    (18,554)   (11,956)   (12,169)   (11,528)
    Cumulative impact of
     accounting changes                   -          -      7,007          -
    -------------------------------------------------------------------------
    Adjusted opening balance        (18,554)   (11,956)    (5,162)   (11,528)
    Other comprehensive loss, net
     of tax                          (1,596)      (213)   (14,988)      (641)
    -------------------------------------------------------------------------
    Balance, end of period          (20,150)   (12,169)   (20,150)   (12,169)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                          CORUS ENTERTAINMENT INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                    Three months ended   Twelve months ended
    (unaudited)                          August 31,            August 31,
    (in thousands of Canadian      ------------------------------------------
     dollars)                          2008       2007       2008       2007
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net income for the period        17,406     21,219    129,835    107,018
    Add (deduct) non-cash
     items:
      Depreciation                    5,801      5,768     22,054     21,556
      Amortization of program and
       film rights                   37,799     37,149    145,661    138,711
      Amortization of film
       investments                    6,897     12,424     28,393     38,781
      Future income taxes              (292)     3,337     (7,321)    16,295
      Non-controlling interest          660      1,294      4,620      5,341
      Stock-based compensation        1,999      3,026      7,971     13,066
      Imputed interest and other      2,185        (35)     8,593      2,404
    Net change in non-cash working
     capital balances related to
     operations                      18,922      5,700    (11,018)   (27,810)
    Payment of program and film
     rights                         (23,578)   (41,145)  (141,917)  (156,220)
    Net additions to film
     investments                    (13,603)   (10,375)   (56,293)   (56,069)
    -------------------------------------------------------------------------
    Cash provided by operating
     activities                      54,196     38,362    130,578    103,073
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Additions to property, plant
     and equipment                   (7,450)    (5,848)   (17,552)   (20,287)
    Business combinations                 -    (18,047)      (774)   (64,692)
    Cash held in escrow             (74,950)         -    (74,950)         -
    Net cash flows for
     investments and other assets      (230)    19,782     (4,251)    20,679
    Decrease in public benefits
     associated with acquisitions    (1,090)    (2,196)    (3,993)    (6,498)
    -------------------------------------------------------------------------
    Cash used in investing
     activities                     (83,720)    (6,309)  (101,520)   (70,798)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Increase (decrease) in bank
     loans                           64,551     (5,450)    85,594     14,388
    Issuance of shares under
     stock option plan                1,370      1,237     11,488     26,915
    Shares repurchased              (32,867)   (12,042)   (91,444)   (36,422)
    Dividends paid                  (12,257)   (10,599)   (46,284)   (44,845)
    Dividend paid to
     non-controlling interest             -          -     (1,742)    (1,524)
    Other                              (149)      (204)      (375)    (1,076)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities            20,648    (27,058)   (42,763)   (42,564)
    -------------------------------------------------------------------------
    Increase (decrease) in cash
     and cash equivalents during
     the period                      (8,876)     4,995    (13,705)   (10,289)
    Cash and cash equivalents,
     beginning of period             28,518     28,352     33,347     43,636
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                   19,642     33,347     19,642     33,347
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                          CORUS ENTERTAINMENT INC.
                        BUSINESS SEGMENT INFORMATION

    Three months ended August 31, 2008

                                    Tele-                     Elimi-   Conso-
                          Radio   vision  Content Corporate nations  lidated
    -------------------------------------------------------------------------
    Revenues             68,482  104,838   12,846        -     (392) 185,774
    Direct cost of
     sales, general and
     administrative
     expenses            53,423   69,133   10,258    6,220     (495) 138,539
    -------------------------------------------------------------------------
    Segment profit       15,059   35,705    2,588   (6,220)     103   47,235
    Depreciation          1,745    2,820       44    1,192        -    5,801
    Interest expense        263      938      180    8,525        -    9,906
    Disputed
     regulatory fees        734      468        -        -        -    1,202
    Other expense, net    3,757      718      488   (1,098)       -    3,865
    -------------------------------------------------------------------------
    Income before
     income taxes and
     non-controlling
     interest and
     non-controlling
     interest             8,560   30,761    1,876  (14,839)     103   26,461
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Three months ended August 31, 2007

                                    Tele-                     Elimi-   Conso-
                          Radio   vision  Content Corporate nations  lidated
    -------------------------------------------------------------------------
    Revenues             66,544  104,219   17,653        -   (1,212) 187,204
    Direct cost of
     sales, general and
     administrative
     expenses            49,148   70,166   15,399    7,372   (1,262) 140,823
    -------------------------------------------------------------------------
    Segment profit       17,396   34,053    2,254   (7,372)      50   46,381
    Depreciation          1,856    2,566      161    1,185        -    5,768
    Amortization              -        -        -      300        -      300
    Interest expense        241      101      199    8,276        -    8,817
    Disputed regulatory
     fees                (2,315)  (1,488)       -        -        -   (3,803)
    Other expense, net    2,590      627      625   (1,279)       -    2,563
    -------------------------------------------------------------------------
    Income before
     income taxes and
     non-controlling
     interest            15,024   32,247    1,269  (15,854)      50   32,736
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Twelve months ended August 31, 2008

                                    Tele-                     Elimi-   Conso-
                          Radio   vision  Content Corporate nations  lidated
    -------------------------------------------------------------------------
    Revenues            286,449  450,175   51,959        -   (1,427) 787,156
    Direct cost of
     sales, general and
     administrative
     expenses           210,945  258,410   44,757   22,979   (2,065) 535,026
    -------------------------------------------------------------------------
    Segment profit       75,504  191,765    7,202  (22,979)     638  252,130
    Depreciation          6,533   10,309      164    5,048        -   22,054
    Interest expense      1,042    3,765      878   35,628        -   41,313
    Disputed regulatory
     fees                 6,155    4,781        -        -        -   10,936
    Other expense, net    3,594    4,362    2,493   (2,596)       -    7,853
    -------------------------------------------------------------------------
    Income before
     income taxes and
     non-controlling
     interest           58,180   168,548    3,667  (61,059)     638  169,974
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Twelve months ended August 31, 2007

                                    Tele-                     Elimi-   Conso-
                          Radio   vision  Content Corporate nations  lidated
    -------------------------------------------------------------------------
    Revenues            275,736  436,270   61,325        -   (4,588) 768,743
    Direct cost of
     sales, general and
     administrative
     expenses           198,201  253,822   55,883   24,844   (4,928) 527,822
    -------------------------------------------------------------------------
    Segment profit       77,535  182,448    5,442  (24,844)     340  240,921
    Depreciation          6,195   10,908      256    4,197        -   21,556
    Amortization              -      355        -    1,200        -    1,555
    Interest expense      1,015      245      496   34,082        -   35,838
    Other expense, net    3,911    6,156    2,876   (3,143)       -    9,800
    -------------------------------------------------------------------------
    Income before
     income taxes and
     non-controlling
     interest            66,414  164,784   1,814   (61,180)     340  172,172
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00013131EF          %CIK: 0001100868




For further information:

For further information: 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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