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 /CNW/ - 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
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00013131E %CIK: 0001100868

SOURCE Corus Entertainment Inc.

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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890