CORUS ENTERTAINMENT ANNOUNCES FISCAL 2025 THIRD QUARTER RESULTS

• Consolidated revenue decreased 10% for the quarter and 11% for the year-to-date
• Consolidated segment profit⁽¹⁾ decreased 9% for the quarter and 32% for the year-to-date
• Consolidated segment profit margin⁽¹⁾ of 21% for the quarter and 18% for the year-to-date
• Net loss attributable to shareholders of $7.3 million ($0.04 loss per share basic) for the quarter and $51.3 million ($0.26 loss per share basic) for the year-to-date
• Free cash flow⁽¹⁾ of negative $32.5 million for the quarter and positive $3.3 million for the year-to-date

TORONTO, June 26, 2025 /CNW/ – Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.

“Our third quarter results reflect progress on our plan to reduce the cost base of our business,” said John Gossling, Chief Executive Officer. “Television advertising revenue was consistent with our Q3 outlook, with impressive audience performance on Global and our largest specialty brands offset by a challenging industry landscape. Looking ahead, we have secured a stellar line-up of new shows and returning hit programming for the upcoming broadcast season, supporting our pursuit of targeted growth opportunities. Given persistent industry headwinds, we are making steady progress on our capital and debt plan while capturing significant savings and efficiencies through our ongoing right-sizing initiatives.”

Financial Highlights

Segment Revenue

Operational Highlights

Building on Corus’ strong schedule, Global TV was #1 in core primetime for Spring 2025 and Fall 2024⁽¹⁾. Total monthly hours streamed across streaming platforms (STACKTV and the Global TV App) for the Winter/Spring season grew 7% over prior year⁽²⁾. In addition, Corus continued to implement cost savings initiatives.

• Global announces its 2025/26 lineup with seven new prime time acquisitions, alongside top series and returning favourites. Global TV’s roster will deliver 16.5 hours of simulcast programming in primetime this fall and introduces new ensemble workplace comedy DMV, dramas CIA and Sheriff Country, and new singing competition series The Road. The fall schedule also features the return of #1 Comedy Ghosts⁽³⁾, #1 Reality Show Survivor⁽³⁾, #1 Late Night Show Saturday Night Live⁽³⁾, along with the NCIS franchise and popular series 9-1-1, FBI, Matlock and Elsbeth.
• Corus Entertainment announces its 2025/2026 lineup across its Specialty portfolio and streaming platforms. Corus continues its exclusive content partnership with NBCUniversal, delivering Peacock and Sky Original series including The Paper, The Copenhagen Test, PONIES, All Her Fault, and The ‘Burbs, as well as returning hits Ted and Bel-Air. Corus’ unscripted and reality networks will see the return of The Curse of Oak Island, Top Chef Canada, Gordon Ramsay’s Kitchen Nightmares, and Corus Original series House of Ali and Rock Solid Builds, alongside new series Life is Messy, WWII with Tom Hanks, Tiffany Haddish Goes Off and Corus Original series Building Baeumler, Halloween Bakeshop and Holiday Bakeshop. Corus’ full 2025/2026 Specialty schedule will be available to stream on STACKTV.

• Free cash flow⁽¹⁾ of a negative $32.5 million in Q3 and positive $3.3 million year-to-date compared to $18.4 million in Q3 and $75.0 million year-to-date, respectively, in the same comparable prior year periods. The decrease in free cash flow⁽¹⁾ for the third quarter is mainly attributable to lower cash provided by operating activities. The decrease for the year-to-date is mainly attributable to lower cash provided by operating activities, offset by higher proceeds from sale of property.
• Net debt to segment profit⁽¹⁾ was 5.39 times as at May 31, 2025, up from 3.84 times at August 31, 2024, as a result of the decrease in segment profit.
• On March 21, 2025, Corus completed an assignment of all the indebtedness and obligations under its Seventh Amended and Restated Credit Agreement dated October 24, 2024 to existing Canadian strategic debtholders. The Company also completed an agreement to amend and restate the Credit Facility, which now matures on March 20, 2027. A copy of the updated Credit Facility is available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
• As of May 31, 2025, the Company had $81.9 million of cash and cash equivalents and $45.0 million available to be drawn under its Revolving Facility.

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2025 and Management’s Discussion and Analysis are available on the Company’s website at www.corusent.com in the Investor Relations section and under the Company’s SEDAR+ profile at www.sedarplus.ca.

A conference call with Corus senior management is scheduled for June 26, 2025 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https://emportal.ink/4kUERnR. You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.945.7677 and for North America is 1.888.699.1199. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning June 26, 2025, at 11 a.m. ET or accessible by telephone until July 3, 2025, at 1.888.660.6345 (toll-free North America) or 289.819.1450 (local or international), using replay code 85170#. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Risks and Uncertainties

Significant risks and uncertainties affecting the Company and its business are discussed under the heading “Risks and Uncertainties” and “Seasonal Fluctuations” in the 2024 MD&A, as well as in the accompanying quarterly MD&A included in the Third Quarter 2025 Report to Shareholders under the heading “Risks and Uncertainties”. These discussions are important to understanding the assumptions and factors which may affect the Company’s outlook and results and are incorporated by reference.

Outlook

In the fourth quarter, we expect geopolitical and economic uncertainty and the ongoing over-supply of premium digital video inventory from foreign competitors will contribute to continued lower demand for linear advertising. As such, the year-over-year percentage decline in Television advertising revenue in the fourth quarter of fiscal 2025 is expected to be in the 20 percent range. Amortization of TV program rights is expected to be relatively flat in the quarter compared to the prior year. The Company will continue with its implementation of additional cost reduction initiatives and expects general and administrative expenses to decline in the range of 10 to 15% for the fourth quarter versus the prior year, excluding any potential benefit from the Independent Local News Fund.

Use of Non-GAAP Financial Measures

This press release includes the non-GAAP or non-IFRS financial measures of segment profit (loss), segment profit margin, free cash flow, adjusted net income attributable to shareholders, adjusted basic earnings per share, net debt to segment profit, as well as supplementary financial measures not presented in the financial statements such as new platform revenue. Non-GAAP or non IFRS measures that are not in accordance with, nor an alternate to, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP or non-IFRS measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with 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 GAAP financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company’s non-GAAP measures is included in the Company’s most recent Report to Shareholders for the three and nine months ended May 31, 2025, which is available on Corus’ website at www.corusent.com as well as on SEDAR+ at www.sedarplus.ca.

Caution Concerning Forward-Looking Information

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 document 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 information”). This forward-looking information relates to, among other things, the Company’s objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company’s strategic plan, advertising and expectations of advertising trends for fiscal 2025, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company’s dividend policy and the payment of future dividends; the Company’s leverage target; the Company’s ability to manage retention and reputation risks related to its on air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information.

Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the Company’s ability to maintain necessary access to loan and credit facilities, the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company’s ability to source, produce or sell desirable content and the Company’s capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information.

Important factors …

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