Corus Entertainment Inc. - Fourth Quarter Report to Shareholders

Corus Entertainment Inc. - Fourth Quarter Report to Shareholders

TORONTO, Oct. 25 /PRNewswire-FirstCall/ --
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HIGHLIGHTS
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(Unaudited)
(thousands of Canadian Three months ended Twelve months ended
dollars except per August 31, August 31,
share data) 2005 2004 2005 2004
-------------------------------------------------------------------------

Revenues 175,279 162,959 683,069 666,804
Segment profit
Radio 15,783 16,234 69,005 60,042
Television 30,756 28,712 140,782 125,055
Content 1,772 108 3,568 (83,721)
Corporate (5,972) (2,609) (18,611) (10,970)
Eliminations 232 392 567 (8)
--------- --------- --------- ---------
42,571 42,837 195,311 90,398
--------- --------- --------- ---------
--------- --------- --------- ---------

Net income (loss) 9,662 14,018 71,114 (23,137)
Earnings (loss) per share
Basic $0.23 $0.33 $1.66 $(0.54)
Diluted 0.22 0.33 1.65 (0.54)

Weighted average number of
shares outstanding
(in thousands)
Basic 42,793 42,739 42,761 42,719
Diluted 43,412 42,831 43,095 42,719

Significant Events in the Quarter

- On May 30, 2005, Corus completed the Astral radio asset transaction.
Under the terms of the deal, Corus acquired seven AM stations and one
FM station and sold five FM stations to Astral Media Inc.

- On June 1, 2005, the Radio-Television News Directors Association of
Canada presented CKNW News-Talk 980 in Vancouver with a regional award
in the Large Market Category for the program Crystal Meth - A Special
Investigation.

- On June 2, 2005, The Association of Canadian Advertisers commended
Corus Radio for the Company's "radio performance guarantee".

- On June 2, 2005, the Alliance for Children and Television (ACT)
awarded Corus Entertainment with six awards including: Award of
Excellence, Animation 9-14, for Delta State, produced by Nelvana Ltd.;
and Best Program for YTV's This is Daniel Cook.

- On June 6, 2005, Telelatino announced the availability of
Super Trio Italiano, a suite of digital channels, in Montreal and
Gatineau areas in Quebec through Videotron.

- On June 12, 2005, the Franklin Children's Garden opened on the
Toronto island.

- On June 20, 2005 Nickelodeon announced a pick-up of 20 new episodes of
Nelvana's Miss Spider's Sunny Patch Friends. In its inaugural season
on Nick Jr., the show ranked third among all new preschool series on
commercial television. The Backyardigans, also co-produced by Nelvana
was ranked second.

- On June 28, 2005 the Association of Canadian Advertisers announced
that Corus' President and Chief Executive Officer, John Cassaday,
would be the recipient of the ACA Gold Medal Award. The award is
presented to an individual who has made an outstanding contribution to
the advancement of marketing communications in Canada.

- On June 28, 2005, Corus Entertainment won 19 PROMAX Promotion and
Marketing awards including ten gold awards. Corus also won two awards
at the Worldfest Film Festival in Houston.

- On July 7, 2005 Corus announced the launch of a video-on-demand
channel, Vortex on Demand with Comcast for the U.S. market. This marks
a new platform for the delivery of Nelvana content as well as
recognition of the appeal of its programming library.

Significant Events Subsequent to the Quarter

- On September 16, 2005, Corus announced that the Movie Central service
would be available for broadcast in High Definition to Bell Express Vu
customers.

- On September 29, 2005 Corus hosted its annual Investor Day. Financial
guidance for fiscal 2006 was given as follows: segment profit of
between $210 to $220 million and free cash flow of between $70 to
$85 million.

- On October 14, 2005, the Copyright Board of Canada announced its
decision to increase royalties paid by commercial radio stations to
the Society of Composers, Authors and Music Publishers of Canada
(SOCAN) and the Neighbouring Rights Collective of Canada (NRCC) for
their use of music from 2003 to 2007.

Management's Discussion and Analysis

The following should be read in conjunction with Management's Discussion and Analysis, consolidated financial statements and the notes thereto included in our August 31, 2004 Annual Report. All amounts are stated in Canadian dollars unless specified otherwise.

Cautionary statement regarding forward-looking statements

Certain statements in this report may constitute forward-looking statements and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current 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; and changes in accounting standards. Consequently, all of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. 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.

Overview of Consolidated Results

The fourth quarter was highlighted by strong revenue growth and excellent operating performance from our Radio, Television and Content segments. Net income for the quarter was $9.7 million on revenues of $175.3 million, compared to $14.0 on revenues of $163.0 million in the prior year. Consolidated results were negatively impacted by a charge for the increase in the performing rights tariff retroactive to fiscal 2003. Television delivered segment profit growth of 7%, while Content contributed another quarter of positive segment profit.

Fourth Quarter Results

Revenues

Revenues for the fourth quarter were $175.3 million, an increase of 8% over $163.0 million last year. Radio and Television experienced increases of 12% and 7% respectively driven by exceptionally strong advertising sales growth, while Content revenues were up 1% from the prior year.

Direct cost of sales, general and administrative expenses

Direct cost of sales, general and administrative expenses for the fourth quarter were $132.7 million, up 10% from $120.1 million in the prior year. Radio expenses were up 18% as the ex-Astral stations acquired at the beginning of the quarter were integrated into the Quebec cluster. Corporate expenses were up by $3.4 million as a result of incentive- and stock-based compensation and the costs of regulatory compliance associated with the Sarbanes-Oxley Act.

Depreciation

Depreciation expense for the fourth quarter was $5.9 million, a decrease of $0.5 million from last year. This decrease reflects a lower capital cost base.

Amortization

Amortization expense for the fourth quarter was $1.1 million, down from $1.3 million last year. The decrease is a result of certain deferred start-up and reformatting costs becoming fully amortized.

Interest on long-term debt

Interest expense for the fourth quarter was $14.3 million, up from $13.6 million last year. The increase results from the fact that the Company terminated its fixed-to-floating interest rate swap agreement in the third quarter of fiscal 2005. The effective interest rate for the fourth quarter was 9.4% compared to 8.5% in the prior year reflecting the absence of interest savings from the fixed-to-floating interest rate swap.

Other expense (income), net

Other expense for the fourth quarter was $5.3 million, compared to income of $3.2 million in the prior year. The fourth quarter includes a realized contingent consideration gain of $4.1 million, a broadcast license impairment of $4.1 million and the retroactive portion of a performing rights tariff increase in the amount of $3.8 million, while the prior year includes an unrealized derivative transaction gain of $2.5 million and foreign exchange gains of $1.4 million.

Income taxes

The effective tax rate for the fourth quarter was 36.0%, compared to the statutory rate of 36.3%. This difference reflects the geographical allocation of the Company's taxable income.

Net income

Net income for the fourth quarter was $9.7 million, down from $14.0 million last year. Earnings per share for the fourth quarter were $0.23 basic and $0.22 diluted, compared with $0.33 basic and diluted last year.

Year to Date Results

Revenues

Revenues for the year were $683.1 million, up 2% from $666.8 million last year. Radio and Television experienced increases of 11% and 7% respectively, while Content was down 27% from the prior year primarily due to lower merchandising revenues.

Direct cost of sales, general and administrative expenses

Direct cost of sales, general and administrative expenses for the year were $487.8 million, down 15% from $576.4 million in the prior year. The third quarter of fiscal 2004 includes a write-down in film investments of $85.0 million. Excluding the write-down, direct cost of sales, general and administrative expenses experienced a 1% decrease.

Depreciation

Depreciation expense for the year was $23.7 million, a decrease of $2.0 million from $25.7 million last year. This change reflects a lower capital cost base due to reduced capital expenditures and existing assets becoming fully depreciated.

Amortization

Amortization expense for the year was $4.6 million, down from $7.3 million last year. The decrease is a result of certain deferred start-up and reformatting costs becoming fully amortized.

Interest on long-term debt

Interest expense for the year was $55.6 million, up from $55.3 million last year primarily due to lower savings generated by a fixed-to-floating interest rate swap in fiscal 2005 compared to fiscal 2004. The effective interest rate for the year was 9.1% compared to 8.6% in the prior year. This increase reflects a higher ratio of fixed rate debt in fiscal 2005 as the Company repaid its floating rate bank loans in the first quarter.

Other expense (income), net

Other income for the year was $5.5 million, compared to $4.9 million in the prior year. The current year includes net derivative transaction gains of $4.4 million, foreign exchange gains of $3.3 million, a realized contingent consideration gain of $4.1 million, a broadcast license impairment of $4.1 million and the retroactive portion of a performing rights tariff increase in the amount of $3.8 million, while the prior year includes net derivative transaction gains of $1.0 million and foreign exchange gains of $2.2 million.

Income taxes

The effective tax rate for the year was 36.6%, compared to the statutory rate of 36.3%. This difference reflects the geographical allocation of the Company's taxable income and the non-deductibility of stock-based compensation.

Net income

Net income for the year was $71.1 million, up from a loss of $23.1 million last year. Earnings per share were $1.66 basic and $1.65 diluted, compared with a loss per share of $0.54 basic and diluted last year.

Radio

The Radio division comprises 53 radio stations situated primarily in nine of the ten largest Canadian markets by population and in the densely populated area of southern Ontario. Corus is Canada's leading radio operator in terms of revenues and audience reach.

Financial Highlights
(Unaudited)
Three months ended Twelve months ended
(thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
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Revenues 65,270 58,316 252,685 227,868
Direct cost of sales,
general and administrative
expenses 49,487 42,082 183,680 167,826
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Segment profit 15,783 16,234 69,005 60,042
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Revenues for the fourth quarter were $65.3 million, up 12% from the corresponding period last year. Revenue growth continued across Canada, particularly in Quebec which benefited from the newly acquired stations. Local and national airtime sales for the division increased over the prior year by 9% and 15%, respectively. Advertising spending across Canada has been strong and collectively, Corus Radio stations out-paced the growth in advertising in important Toronto and Montreal markets, according to the Trans-Canada Radio Advertising by Market ("TRAM") report for the quarter ended August 31, 2005.

Revenues for the year were $252.7 million, up 11% from the corresponding period last year as our stations continued to be well positioned to take advantage of a strong advertising market. This growth was experienced across Canada, and in both local and national advertising. Based on the TRAM report Corus stations generated advertising growth of 11.3%, compared to total market growth of 8.7%.

Direct cost of sales, general and administrative expenses for the fourth quarter were $49.5 million, up 18% from the corresponding period last year. This increase results from the integration of the eight newly acquired stations in Quebec and the increase in the performing rights tariff.

Direct cost of sales, general and administrative expenses for the year were $183.7 million, up 9% from last year, mainly due to higher variable costs such as sales commissions and copyright fees, as well as higher on-air talent compensation costs and Quebec integration costs.

Segment profit for the fourth quarter was $15.8 million, a decrease of 3% over the corresponding period last year as Corus integrated the newly acquired stations. Segment profit for the year was $69.0 million, up 15% from the corresponding period last year as the strong revenue growth of the first three quarters continued through the fourth quarter. Segment profit for fiscal 2005 includes the $2.6 million negative impact of the newly announced tariff rates imposed by the Copyright Board for 2005. The retroactive portion for fiscals 2003 and 2004 of $3.8 million has been reflected in "Other expense (income), net".

Television

The Television division is composed of the following: specialty television networks YTV, Treehouse TV, W Network, Corus' 80% interest in CMT (Country Music Television), 50.5% interest in Telelatino, 40% interest in Teletoon and a 19.9% interest in Food Network; Corus' premium television services Movie Central and Encore; interests in three digital television channels, Scream, Discovery Kids and The Documentary Channel; Corus Custom Networks, a cable advertising service; three conventional television stations; and Max Trax, a residential digital audio service.

Financial Highlights
(Unaudited)
Three months ended Twelve months ended
(thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
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Revenues 83,449 78,257 354,201 332,349
Direct cost of sales,
general and administrative
expenses 52,693 49,545 213,419 207,294
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Segment profit 30,756 28,712 140,782 125,055
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Revenues for the fourth quarter were $83.4 million, up 7% over the corresponding period last year. Revenue growth was driven by continued advertising growth of 7% and subscriber growth of 6%, while other non- broadcast related revenues were down in the quarter. On the advertising side, the strong growth was driven by CMT, W Network and Teletoon. Specialty advertising revenues grew 11% over the prior year's quarter. The subscriber revenue growth was driven by Movie Central, Corus' western-based pay television service which grew by 10% in the fourth quarter and finished the quarter with 748,000 subscribers, up 6% from 707,000 at August 31, 2004.

Revenues for the year were $354.2 million, up 7% from last year. Advertising revenues were up 9% for the year and subscriber revenues were up 5% over the prior year. Specialty advertising revenues grew 13% over the prior year.

Direct cost of sales, general and administrative expenses were $52.7 million for the fourth quarter, up 6% from the prior year. The increase was primarily due to higher overall cost of sales and higher variable costs associated with increased revenues. Amortization of program and film rights, included in direct cost of sales, increased as a result of a higher proportion of blockbuster movies acquired at Movie Central. These same factors contributed to direct cost of sales, general and administrative expenses for the year of $213.4 million, up 3% from the corresponding period last year. These increased costs were offset by effective cost containment in general and administrative overhead.

Segment profit for the fourth quarter was $30.8 million, up 7% from the prior year. Segment profit for the year was $140.8 million, up 13% from last year.

Content

The Content division consists of the production and distribution of television programs and the sale and licensing of related products.

Financial Highlights
(Unaudited)
Three months ended Twelve months ended
(thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
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Revenues 27,950 27,739 82,318 112,639
Direct cost of sales,
general and administrative
expenses 26,178 27,631 78,750 196,360
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Segment profit 1,772 108 3,568 (83,721)
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Revenues for the fourth quarter were $28 million, an increase of 1% from the prior year. During the quarter Content produced 12 episodes, primarily of 6Teen and The Backyardigans, plus four direct-to video features, compared to 33 episodes in the prior year. The increase in revenues despite lower episode delivery came as a result of service revenue and music royalties, as well as first-window sales related to earlier deliveries. Revenues for the year were $82.3 million, down 27% from last year. Revenues were down for the year due primarily to the decline in Beyblade revenue in both broadcast sales and licensing. Included in Content's revenues are $6.1 million in intercompany revenues, unchanged from the prior year. These revenues are eliminated upon consolidation.

Direct cost of sales, general and administrative expenses for the fourth quarter were $26.2 million, down by 5% from the prior year. Direct cost of sales, general and administrative expenses for year were $78.8 million, down 60% from the prior year. In the third quarter of fiscal 2004, the Content division recorded an $85.0 million write-down of its film investments. Excluding the write-down, direct cost of sales, general and administrative expenses were down 29%, reflecting lower costs of sales associated with lower revenues.

Segment profit for the fourth quarter was $1.8 million, compared to $0.1 million last year. Segment profit for the year was $3.6 million, compared to a loss of $83.7 million last year. The Content division continues to perform in line with the Company's expectations.

Corporate

The Corporate segment results represent the incremental cost of corporate overhead in excess of the amount allocated to the other operating segments.

Financial Highlights
(Unaudited)
Three months ended Twelve months ended
(thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Stock-based compensation 2,178 322 6,766 2,984
Other general and
administrative costs 3,794 2,287 11,845 7,986
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General and administrative
expenses 5,972 2,609 18,611 10,970
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General and administrative expense increased to $6.0 million in the fourth quarter from $2.6 million in the same period last year. General and administrative expenses for the year increased to $18.6 million from $11.0 million last year.

Stock-based compensation includes the expenses related to the Company's Performance Share Units and the issuance of stock options. The increase in the quarter and year reflects the impact of Corus' higher average share price in fiscal 2005 on expenses related to the Company's Performance Share Units, as well as an additional year of expensing stock options.

The increase in other general and administrative costs of $1.5 million in the fourth quarter and $3.9 million for the year relate primarily to increased costs of information technology and implementation costs associated with compliance with the Sarbanes-Oxley Act.

Quarterly Consolidated Financial Information

The following table sets forth certain unaudited data from the consolidated statements of income (loss) and retained earnings (deficit) for each of the eight most recent quarters ended August 31, 2005. The information has been derived from the Company's unaudited consolidated financial statements that, in management's opinion, have been prepared on a basis consistent with the audited consolidated financial statements contained in the Company's Annual Report for the year ended August 31, 2004.

(thousands of Segment Net Earnings
Canadian Revenues profit income (loss) per share
dollars) (loss) (loss) Basic Diluted
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2005
4th Qtr 175,279 42,571 9,662 $0.23 $0.22
3rd Qtr 171,890 52,351 19,430 0.45 0.45
2nd Qtr 155,300 38,024 12,945 0.30 0.30
1st Qtr 180,600 62,365 29,077 0.68 0.68
2004
4th Qtr 162,959 42,837 14,018 $0.33 $0.33
3rd Qtr 163,864 (43,777) (51,160) (1.20) (1.20)
2nd Qtr 155,019 34,069 8,305 0.19 0.19
1st Qtr 184,962 57,269 5,700 0.13 0.13

Seasonal Fluctuations

As discussed in Management's Discussion and Analysis for the year ended August 31, 2004, the first quarter results tend to be the strongest and second quarter results tend to be the weakest in a fiscal year.

Significant items causing variations in quarterly results

- The first quarter of fiscal 2004 was impacted by the Ontario
government's decision to cancel previously announced reductions to
future tax rates and to increase current tax rates. This change in
Ontario tax rates caused an increase in the Company's non-cash income
tax expense and net future tax liability position of $17.8 million
($0.42/share).

- The third quarter of fiscal 2004 was impacted by a non-cash, after-tax
write-down in film investments of $60.3 million ($1.41/share)
resulting from the Company's decision to lower estimates of future
revenue as a result of a challenging library market and lower U.S.
dollar. The pre-tax write-down of $85.0 million was recorded in
operating, general and administrative expenses.

Risks and Uncertainties

There have been no material changes in any risks or uncertainties facing the Company since the year ended August 31, 2004.

Financial Position

Total assets at August 31, 2005 were $1.93 billion compared to $1.87 billion at August 31, 2004. The following discussion describes the significant changes in the consolidated balance sheet since August 31, 2004.

Current assets increased by $49.5 million. Cash and cash equivalents increased by $42.9 million. Accounts receivable increased by $11.7 million as a result of increased revenues at Radio and Television.

Non-current assets increased by $6.9 million. Tax credits receivable increased by $1.5 million due to accruals made related to film production. Property, plant and equipment decreased by $6.1 million as capital expenditures of $19.2 million were offset by depreciation of $23.7 million and asset disposals of $2.1 million. Program and film rights (current and non-current) increased by $23.1 million, as accruals for acquired rights of $133.5 million were offset by amortization of $110.6 million. Film investments increased by $1.6 million, as net film spending of $49.4 million was offset by film amortization and accruals for tax credits. Deferred charges decreased by $3.7 million due primarily to amortization. Broadcast licenses increased by $5.5 million as a result of the Quebec radio station swap and an impairment provision of $4.1 million, while goodwill decreased by $9.2 million as a result of the sale of Locomotion's assets and the Quebec radio station swap.

Current liabilities increased by $9.3 million. Accounts payable and accrued liabilities increased by $10.8 million and income taxes payable decreased by $1.5 million. Accounts payable and accrued liabilities related to working capital increased by $10.3 million, due to the timing of trade accounts payable and the impact of higher performing rights tariffs, while non-working capital accruals for program rights and film investments increased by $0.5 million.

Non-current liabilities decreased by $21.9 million. Long-term debt decreased by $84.0 million, resulting from repayments of $34.0 million and foreign exchange translation adjustments. Deferred credits increased by $49.6 million, as payments of $9.9 million for public benefits related to acquisitions were offset by $47.2 million in translation adjustments for cross-currency agreements and other working capital adjustments. Net future tax liability (including current asset) increased by $10.9 million primarily as a result of the utilization of tax loss carryforwards. Other long-term liabilities increased by $6.7 million as a result of an increase in the long-term portion of program rights accruals.

Share capital increased by $1.9 million primarily as a result of the exercising of employee stock options. Contributed surplus increased by $2.3 million as a result of expensing stock options for the period. Cumulative translation adjustment decreased by $3.0 million primarily due to the effect of exchange rate fluctuation on the translation of the net assets of self-sustaining foreign operations.

Liquidity and Capital Resources

Cash flows

Overall, the Company's cash and cash equivalents position increased by $28.5 million in the fourth quarter, and increased by $42.9 million in the twelve months ended August 31, 2005.

Cash provided by operating activities for the fourth quarter was $41.3 million, compared to $24.8 million last year. An increase in net income adjusted for non-cash items of $1.9 million and decrease of $20.2 million in change to non-cash working capital was offset by an increase in film expenditures of $6.7 million. Cash provided by operating activities for the year was $102.4 million compared to $84.9 million in the prior year. An increase in net income adjusted for non-cash items of $5.8 million and reduced non-cash working capital of $20.6 million were offset by an increase of $7.1 million in program rights expenditures.

Cash used in investing activities was $11.5 million for the fourth quarter compared to $10.9 million last year. Cash used in investing activities for the year was $22.5 million, compared to $32.4 million in the prior year, as there were reduced requirements for cash for investments, as well as proceeds from the sale of non-core assets.

Cash used in financing activities in the fourth quarter was $1.4 million compared to a source of $1.3 million last year. Cash used in financing activities for the year was $37.1 million, compared to $1.1 million in the prior year, as the Company paid down its U.S. dollar denominated bank loan balance of $34.0 million in the first quarter of fiscal 2005.

Net debt and adjusted net debt

At August 31, 2005, net debt was $307.1 million, down from $433.9 million at August 31, 2004. Adjusted net debt at August 31, 2005 was $465.9 million, down from $545.5 million at August 31, 2004. Adjusted net debt to adjusted segment profit at August 31, 2005 was 2.4 times, down from 3.1 times at August 31, 2004.

Key Performance Indicators

The Company measures the success of its strategies using a number of key performance indicators. These have been outlined in the Management's Discussion and Analysis contained in the Annual Report for the year ended August 31, 2004, including a discussion as to their relevance, definitions, calculation methods and underlying assumptions. Certain key performance indicators are not measurements in accordance with Canadian or U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income or any other measure of performance under Canadian or U.S. GAAP.

The following tables reconcile those key performance indicators that are not in accordance with GAAP measures.

Free cash flow

Three months ended Twelve months ended
(thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Cash provided by (used in):
Operating activities 41,346 24,783 102,416 84,912
Investing activities (11,476) (10,873) (22,455) (32,425)
-------------------------------------------------------------------------
Free cash flow 29,870 13,910 79,961 52,487
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Net debt and adjusted net debt

As at As at
August 31, August 31,
(thousands of Canadian dollars) 2005 2004
-------------------------------------------------------------------------
Long-term debt 445,162 529,139
Cash and cash equivalents (138,086) (95,231)
-------------------------------------------------------------------------
Net debt 307,076 433,908
Unrealized cumulative foreign exchange gains 158,838 111,625
-------------------------------------------------------------------------
Adjusted net debt 465,914 545,533
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Adjusted net debt to adjusted segment profit

As at As at
August 31, August 31,
(thousands of Canadian dollars 2005 2004
except ratios)
-------------------------------------------------------------------------
Adjusted net debt (numerator) 465,914 545,533
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Adjusted segment profit
Segment profit(1) 195,311 90,398
Write-down of film investments(1) - 85,000
-------------------------------------------------------------------------
Adjusted segment profit (denominator) 195,311 175,398
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Adjusted net debt to adjusted segment profit 2.4 3.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Reflects aggregate amounts for the most recent four quarters, as
detailed in the table in the "Quarterly Consolidated Financial
Information" of Management's Discussion and Analysis.

CORUS ENTERTAINMENT INC.
CONSOLIDATED BALANCE SHEETS

As at As at
August 31, August 31,
2005 2004
(unaudited) (revised -
(thousands of Canadian dollars) note 13(b))
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ASSETS
Current
Cash and cash equivalents 138,086 95,231
Accounts receivable 155,343 143,641
Prepaid expenses and other 10,948 9,674
Program and film rights 93,725 92,786
Future tax asset 6,498 13,719
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Total current assets 404,600 355,051
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Tax credits receivable 12,292 10,774
Investments and other assets 36,886 41,683
Property, plant and equipment, net 76,041 82,105
Program and film rights 54,715 32,523
Film investments (note 3) 58,417 56,867
Deferred charges 15,560 19,305
Broadcast licenses 514,552 509,040
Goodwill (note 4) 755,301 764,518
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1,928,364 1,871,866
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 172,236 161,397
Income taxes payable 3,049 4,567
-------------------------------------------------------------------------
Total current liabilities 175,285 165,964
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Long-term debt (note 5) 445,162 529,139
Deferred credits (note 6) 195,789 146,164
Future tax liability 147,744 144,085
Other long-term liabilities 22,895 16,203
Non-controlling interest 11,227 9,131
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Total liabilities 998,102 1,010,686
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SHAREHOLDERS' EQUITY
Share capital (note 7) 885,911 884,053
Contributed surplus 3,558 1,287
Retained earnings (deficit) 50,802 (17,122)
Cumulative translation adjustment (note 11) (10,009) (7,038)
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Total shareholders' equity 930,262 861,180
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1,928,364 1,871,866
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See accompanying notes

On behalf of the Board,

John M. Cassaday Heather A. Shaw
President and Chief Executive Officer Executive Chair

October 25, 2005

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED EARNINGS (DEFICIT)

(unaudited)
(in thousands of Canadian Three months ended Twelve months ended
dollars except per August 31, August 31,
share amounts) 2005 2004 2005 2004
-------------------------------------------------------------------------
Revenues 175,279 162,959 683,069 666,804

Direct cost of sales,
general and administrative
expenses 132,708 120,122 487,758 576,406
Depreciation 5,882 6,397 23,710 25,682
Amortization 1,129 1,345 4,577 7,276
Interest on long-term debt 14,285 13,593 55,561 55,276
Other expense (income), net 5,295 (3,189) (5,494) (4,937)
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Income before income taxes
and non-controlling interest 15,980 24,691 116,957 7,101

Income tax expense 5,749 9,682 42,810 26,925
-------------------------------------------------------------------------
Income (loss) before
non-controlling interest 10,231 15,009 74,147 (19,824)

Non-controlling interest (569) (991) (3,033) (3,313)
-------------------------------------------------------------------------
Net income (loss) for the
period 9,662 14,018 71,114 (23,137)

Retained earnings (deficit),
beginning of period 43,270 (30,080) (17,122) 8,135

Dividends paid (2,130) (1,060) (3,190) (2,120)
-------------------------------------------------------------------------
Retained earnings (deficit),
end of period 50,802 (17,122) 50,802 (17,122)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Earnings (loss) per share
(note 9)
Basic $0.23 $0.33 $1.66 $(0.54)
Diluted 0.22 0.33 1.65 (0.54)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Weighted average number of
shares outstanding
(in thousands)
Basic 42,793 42,739 42,761 42,719
Diluted 43,412 42,831 43,095 42,719
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) Three months ended Twelve months ended
(in thousands of Canadian August 31, August 31,
dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income (loss) for the
period 9,662 14,018 71,114 (23,137)
Add (deduct) non-cash items:
Depreciation 5,882 6,397 23,710 25,682
Amortization of program
and film rights 26,776 24,472 110,630 105,549
Amortization of film
investments 19,165 18,283 43,693 142,754
Other amortization 1,129 1,345 4,577 7,276
Future income taxes (1,787) 5,660 8,601 600
Non-controlling interest 569 991 3,033 3,313
Foreign exchange losses gains - (1,343) (2,747) (2,057)
Stock-based compensation 2,178 322 6,766 2,984
Unrealized derivative
losses (gains) - (2,468) (3,278) 3,278
Broadcast license impairment 4,108 - 4,108 -
Other 2,014 126 1,769 (24)
Net change in non-cash working
capital balances related to
operations 18,498 (1,655) 2,235 (18,395)
Payment of program and film
rights (36,580) (37,764) (122,368) (115,314)
Net additions to film
investments (10,268) (3,601) (49,427) (47,597)
-------------------------------------------------------------------------
Cash provided by operating
activities 41,346 24,783 102,416 84,912
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Additions to property,
plant and equipment (8,441) (5,465) (19,217) (17,421)
Decrease (increase) in
investments, net 1,571 (1,426) 665 (3,685)
Decrease in public benefits
associated with acquisitions (4,606) (3,982) (9,893) (11,455)
Proceeds from sale of assets - - 6,822 136
Additions to deferred charges - - (832) -
-------------------------------------------------------------------------
Cash used in investing
activities (11,476) (10,873) (22,455) (32,425)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Increase (decrease) in
bank loans - 2,637 (34,017) -
Decrease in other long-term
liabilities (191) (234) (820) (911)
Issuance of shares under
stock option plan 915 - 1,650 2,212
Dividends paid (2,130) (1,060) (3,190) (2,120)
Dividends paid to
non-controlling interest - - (937) (521)
Other - - 208 210
-------------------------------------------------------------------------
Cash provided by (used in)
financing activities (1,406) 1,343 (37,106) (1,130)
-------------------------------------------------------------------------

Net increase in cash and cash
equivalents during period 28,464 15,253 42,855 51,357
Cash and cash equivalents,
beginning of period 109,622 79,978 95,231 43,874
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period 138,086 95,231 138,086 95,231
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes

Corus Entertainment Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
August 31, 2005
(in thousands of Canadian dollars except share information)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements include the accounts of
Corus Entertainment Inc. and its subsidiaries ("Corus" or the
"Company"). The notes presented in these interim consolidated
financial statements include only significant events and transactions
occurring since the Company's last fiscal year and are not fully
inclusive of all matters normally disclosed in the Company's annual
audited financial statements. As a result, these interim consolidated
financial statements should be read in conjunction with the Company's
consolidated financial statements for the year ended August 31, 2004.

These interim consolidated financial statements follow the same
accounting policies and methods of application as the most recent
annual consolidated financial statements.

Corus' operating results are subject to seasonal fluctuations that
can significantly impact quarter-to-quarter operating results.
Accordingly, one quarter's operating results are not necessarily
indicative of a subsequent quarter's operating results. Each of our
broadcasting businesses (Radio and Television) and our Content
business have unique seasonal aspects.

For our broadcasting businesses, operating results are dependent on
general advertising and retail cycles associated with consumer
spending activity. Accordingly, operating results for the first
quarter tend to be the strongest, reflecting pre-Christmas
advertising activity and the second quarter tends to be the weakest,
consistent with lower consumer spending in winter months.

For our Content business, operating results are dependent on the
timing and number of television programs made available for delivery
in the period, as well as timing of merchandising royalties received,
none of which can be predicted with certainty. Consequently,
Content's operating results may fluctuate significantly from quarter
to quarter. As well, cash flows may also fluctuate and are not
necessarily closely related to revenue recognition.

2. BUSINESS COMBINATIONS

Effective May 29, 2005, Corus completed an asset exchange with
Astral Media Inc., that resulted in Corus acquiring eight stations in
Quebec in exchange for five Corus-owned stations in Quebec, as well
as other consideration including $2,500 in cash. This transaction was
accounted for using the purchase method. The results of operations of
the eight stations previously owned by Astral Media Inc. are included
in Corus' consolidated financial statements from the date of the
transaction. Accrued liabilities include a severance accrual of
approximately $1,676, which was substantially settled by year-end,
except for accruals relating to salary continuance. No gain or loss
was recorded on this transaction.

-------------------------------------------------
Consideration given:
Cash (2,500)
Property, plant and equipment 1,958
Broadcast licenses 2,047
Goodwill 6,917
Transaction costs 908
-------------------------------------------------
9,330
-------------------------------------------------
-------------------------------------------------

-------------------------------------------------
Assigned value of net assets acquired:
Property, plant and equipment 2,750
Broadcast licenses 11,025
Accrued liabilities (1,828)
Future tax liability (2,617)
-------------------------------------------------
9,330
-------------------------------------------------
-------------------------------------------------

3. FILM INVESTMENTS

As at As at
August 31, August 31,
2005 2004
---------------------------------------------------------------------
Projects in development and in process,
net of advances 15,876 15,990
Completed projects and distribution rights 28,796 31,843
Investments in third party film projects 13,745 9,034
---------------------------------------------------------------------
58,417 56,867
---------------------------------------------------------------------
---------------------------------------------------------------------

4. GOODWILL AND BROADCAST LICENSES

During the second quarter the Company sold its 50% share in the
assets of the Locomotion Channel to a wholly-owned subsidiary of
Sony Pictures Inc. for an aggregate $6,200 purchase price. The
purchase price is to be paid out over three years and a portion is
subject to certain performance related holdbacks. There was a
reduction of $2,300 in goodwill, and an immaterial loss was recorded
on this disposition.

As discussed in note 2, during the third quarter the Company
completed the exchange of certain radio stations in Quebec with
Astral Media Inc. This transaction resulted in a reduction of $6,917
in goodwill and an increase of $8,978 in broadcast licenses.

At August 31, 2005 the Company performed its annual impairment test
of goodwill and broadcast licenses and determined that there was an
impairment of $4,108 in the broadcast licenses related to three radio
stations. This impairment charge is included in "Other expense
(income), net".

5. LONG-TERM DEBT

As at As at
August 31, August 31,
2005 2004
---------------------------------------------------------------------
Senior subordinated notes
Principal amount translated into
Canadian dollars at hedged rate 604,000 604,000
Unrealized cumulative foreign exchange
gains (158,838) (111,625)
---------------------------------------------------------------------
Senior subordinated notes translated at
the current rate 445,162 492,375
Bank loans - 36,764
---------------------------------------------------------------------
445,162 529,139
---------------------------------------------------------------------
---------------------------------------------------------------------

Effective January 31, 2005 the Company's credit facility, including
bank loans, with a syndicate of banks was amended. The amendment
resulted in an extension of the maturity of the facility to
January 31, 2009. The amount committed is $215,000 which is available
on a revolving basis and repayable at maturity. Other terms of the
amended credit facility are substantially similar to the prior credit
facility.

6. DEFERRED CREDITS

As at As at
August 31, August 31,
2005 2004
---------------------------------------------------------------------
Public benefits associated with acquisitions 21,209 31,102
Cross-currency agreements translated into
Canadian dollars at the current rate 158,838 111,625
Unearned revenue from distribution and
licensing of film rights 12,320 2,800
Other 3,422 637
---------------------------------------------------------------------
195,789 146,164
---------------------------------------------------------------------
---------------------------------------------------------------------

7. SHARE CAPITAL

Authorized

The Company is authorized to issue, upon approval of holders of no
less than two-thirds of the existing Class A shares, an unlimited
number of Class A participating shares ("Class A Voting Shares"), as
well as an unlimited number of Class B non-voting participating
shares ("Class B Non-Voting Shares"), Class A Preferred Shares, and
Class 1 and Class 2 preferred shares.

Issued and Outstanding

The changes in the Class A Voting and Class B Non-Voting Shares since
August 31, 2004 are summarized as follows:

Class A Class B
Voting Shares Non-Voting Shares Total
---------------------- -----------------------
No. $ No. $ $
-------------------------------------------------------------------------
Balance, August
31, 2004 1,724,929 26,715 41,014,099 857,338 884,053
Issuance of
shares under
Stock Option
Plan - - 64,020 1,650 1,650
Repayment of
executive stock
purchase loans - - - 208 208
-------------------------------------------------------------------------
Balance, August
31, 2005 1,724,929 26,715 41,078,119 859,196 885,911
-------------------------------------------------------------------------
-------------------------------------------------------------------------

There were no significant changes to the outstanding share capital
subsequent to quarter end.

Stock Option Plan

Under the Company's Stock Option Plan, the Company may grant options
to purchase Class B Non-Voting Shares to eligible officers,
directors, and employees of or consultants to the Company. The
maximum number of shares that can be reserved for issuance under the
plan is 4,084,642. All options granted are for terms not to exceed
ten years from the grant date. The exercise price of each option
equals the market price of the Company's stock on the date of the
grant. Options vest 25% on each of the first, second, third and
fourth anniversary dates of the date of grant.

During fiscal 2005, the Company granted 443,600 stock options with a
weighted average exercise price of $23.80 per share, and a term of
seven and a half years. The weighted average fair value of the stock
options granted in fiscal 2005 was $9.02 per option.

As at August 31, 2005, the Company has outstanding stock options for
3,438,489 Class B Non-Voting Shares, of which 2,529,331 are
exercisable.

The fair value of each option granted was estimated on the date of
the grant using the Black-Scholes option pricing model with the
following assumptions:

Fiscal Fiscal
2005 2004
---------------------------------------------------------------------
Expected life Five Years Five Years
Risk-free interest rates 4.31% 4.08% to 4.67%
Dividend yield 0.21% 0.19%
Volatility 35.98% 37.21% to 39.52%
---------------------------------------------------------------------
---------------------------------------------------------------------

The estimated fair value of the options is amortized to income over
the option's vesting period on a straight-line basis. The Company has
recorded stock-based compensation expense for the three and twelve
month periods of $559 and $2,271 respectively (2004 - $310 and $1,287
respectively) and this has been credited to contributed surplus.

For options granted to employees up to August 31, 2003, had
compensation costs for the Company's Stock Option Plan been
determined based on the fair value based method of accounting for
stock-based compensation, the Company's net income and earnings per
share would have been reduced to the pro forma amounts indicated
below:

Three months ended Twelve months ended
August 31, August 31,
2005 2004 2005 2004
---------------------------------------------------------------------
Net income (loss) 9,662 14,018 71,114 (23,137)
Pro forma net income
(loss) 9,418 13,717 69,598 (25,123)
Pro forma basic earnings
(loss) per share 0.22 0.32 1.63 (0.59)
Pro forma diluted earnings
(loss) per share 0.22 0.32 1.62 (0.59)
---------------------------------------------------------------------
---------------------------------------------------------------------

8. BUSINESS SEGMENT INFORMATION

The Company's business activities are conducted through three
reportable operating segments:

Radio

The Radio segment comprises 53 radio stations, situated primarily in
high growth urban centres in Canada. Revenues are derived from
advertising broadcast over these stations.

Television

The Television segment includes interests in several specialty
television networks, pay television, conventional television
stations, digital audio services and cable advertising services.
Revenues are generated from subscriber fees and advertising.

Content

The Content segment includes the production and distribution of
television programs and the sale and licensing of related products.
Revenues are generated from licensing of proprietary films and
television programs, merchandise licensing and publishing. Prior to
the first quarter of fiscal 2005, the Content segment had been
reported with two components: Content - production and distribution;
and Content - branded consumer products. Corus has changed the
structure of its internal organization such that the production and
distribution of television products and the licensing of related
products are managed as an integrated business process, and are not
meaningful to view as separate business activities. Commencing with
the first quarter of fiscal 2005, the results of the Content division
have been disclosed in aggregate, and the corresponding items of
segment information for earlier periods have been restated.

Except as noted above, the accounting policies of the segments are
the same as those described in the summary of significant accounting
policies. Management evaluates the business segments' performance
based on revenues less direct cost of sales, general and
administrative expenses. Transactions between reporting segments are
recorded at fair value.

(a) Revenues and segment profit

Three months ended
August 31, 2005 Elimi- Consoli-
Radio Television Content Corporate nations dated
-------------------------------------------------------------------------
Revenues 65,270 83,449 27,950 - (1,390) 175,279
Direct cost
of sales,
general and
administrative
expenses 49,487 52,693 26,178 5,972 (1,622) 132,708
-------------------------------------------------------------------------
Segment
profit 15,783 30,756 1,772 (5,972) 232 42,571
Depreciation 1,825 2,307 838 912 - 5,882
Amortization - 465 - 664 - 1,129
Interest on
long-term debt - - - 14,285 - 14,285
Other expense
(income), net 7,882 40 (3,763) 1,136 - 5,295
-------------------------------------------------------------------------
Income before
income taxes
and non-
controlling
interest 6,076 27,944 4,697 (22,969) 232 15,980
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Three months ended
August 31, 2004 Elimi- Consoli-
Radio Television Content Corporate nations dated
-------------------------------------------------------------------------
Revenues 58,316 78,257 27,739 - (1,353) 162,959
Direct cost
of sales,
general and
administrative
expenses 42,082 49,545 27,631 2,609 (1,745) 120,122
-------------------------------------------------------------------------
Segment
profit 16,234 28,712 108 (2,609) 392 42,837
Depreciation 1,972 2,374 852 1,199 - 6,397
Amortization - 644 - 701 - 1,345
Interest on
long-term debt - - - 13,593 - 13,593
Other expense
(income), net 464 (246) 441 (3,848) - (3,189)
-------------------------------------------------------------------------
Income before
income taxes
and non-
controlling
interest 13,798 25,940 (1,185) (14,254) 392 24,691
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Year ended
August 31, 2005 Elimi- Consoli-
Radio Television Content Corporate nations dated
-------------------------------------------------------------------------
Revenues 252,685 354,201 82,318 - (6,135) 683,069
Direct cost
of sales,
general and
administrative
expenses 183,680 213,419 78,750 18,611 (6,702) 487,758
-------------------------------------------------------------------------
Segment
profit 69,005 140,782 3,568 (18,611) 567 195,311
Depreciation 6,979 9,060 3,926 3,745 - 23,710
Amortization - 1,859 - 2,718 - 4,577
Interest on
long-term debt - - - 55,561 - 55,561
Other expense
(income), net 7,982 312 (3,641) (10,147) - (5,494)
-------------------------------------------------------------------------
Income before
income taxes
and non-
controlling
interest 54,044 129,551 3,283 (70,488) 567 116,957
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Year ended
August 31, 2004 Elimi- Consoli-
Radio Television Content Corporate nations dated
-------------------------------------------------------------------------
Revenues 227,868 332,349 112,639 - (6,052) 666,804
Direct cost
of sales,
general and
administrative
expenses 167,826 207,294 196,360 10,970 (6,044) 576,406
-------------------------------------------------------------------------
Segment
profit 60,042 125,055 (83,721) (10,970) (8) 90,398
Depreciation 8,776 8,759 2,800 5,347 - 25,682
Amortization 787 3,687 - 2,802 - 7,276
Interest on
long-term debt - - - 55,276 - 55,276
Other expense
(income), net 431 (1,047) 818 (5,139) - (4,937)
-------------------------------------------------------------------------
Income before
income taxes
and non-
controlling
interest 50,048 113,656 (87,339) (69,256) (8) 7,101
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The corporate segment represents the incremental cost of corporate
overhead in excess of the amount allocated to the other operating
segments.

(b) Segment assets

As at As at
August 31, August 31,
2005 2004
---------------------------------------------------------------------
Radio 713,427 705,000
Television 878,323 855,186
Content 145,947 162,119
Corporate 191,963 151,782
Eliminations (1,296) (2,221)
---------------------------------------------------------------------
1,928,364 1,871,866
---------------------------------------------------------------------
---------------------------------------------------------------------

Assets are located primarily within Canada.

9. EARNINGS (LOSS) PER SHARE

The following is a reconciliation of the numerator and denominators
(in thousands) used for the computation of the basic and diluted
earnings (loss) per share amounts.

Three months ended Twelve months ended
August 31, August 31,
2005 2004 2005 2004
---------------------------------------------------------------------
Net income (loss) for the
period (numerator) 9,662 14,018 71,114 (23,137)
---------------------------------------------------------------------
---------------------------------------------------------------------

Weighted average number of
shares outstanding
(denominator)
Weighted average number
of shares outstanding
- basic 42,793 42,739 42,761 42,719
Effect of dilutive
securities 619 92 334 -
---------------------------------------------------------------------
Weighted average number of
shares outstanding
- diluted 43,412 42,831 43,095 42,719
---------------------------------------------------------------------
---------------------------------------------------------------------

10. CONSOLIDATED STATEMENTS OF CASH FLOWS

Interest paid, interest received and income taxes paid and classified
as operating activities are as follows:

Three months ended Twelve months ended
August 31, August 31,
2005 2004 2005 2004
---------------------------------------------------------------------
Interest paid 37 - 53,855 55,800
Interest received 1,085 796 2,995 2,135
Income taxes paid 6,904 13,541 36,279 38,568
---------------------------------------------------------------------
---------------------------------------------------------------------

11. FOREIGN EXCHANGE GAINS AND LOSSES

The Company has reflected certain gains and losses in its
consolidated statements of income (loss) and retained earnings
(deficit) as a result of exposure to foreign currency exchange rate
fluctuations. A portion of these gains and losses relate to operating
activities while others are of a financing nature. Foreign exchange
gains and losses are reflected in the consolidated financial
statements as follows:

Three months ended Twelve months ended
August 31, August 31,
2005 2004 2005 2004
---------------------------------------------------------------------
Direct cost of sales,
general and administrative
expenses (179) (615) (829) (1,222)
Other expense (income),
net 815 (1,412) (3,338) (2,245)
---------------------------------------------------------------------
Total foreign exchange
loss (gains) 636 (2,027) (4,167) (3,467)
---------------------------------------------------------------------
---------------------------------------------------------------------

An analysis of the cumulative translation adjustment shown separately
in shareholders' equity is as follows:

---------------------------------------------------------------------
Balance, August 31, 2004 (7,038)
Effect of exchange rate fluctuation on
translation of net assets of self-sustaining
foreign operations (3,418)
Other 447
---------------------------------------------------------------------
Balance, August 31, 2005 (10,009)
---------------------------------------------------------------------
---------------------------------------------------------------------

12. RELATED PARTY TRANSACTIONS

In the first quarter of fiscal 2005, Corus acquired a cable
advertising business for $931 in cash from Shaw Communications Inc.,
a company subject to common voting control. All other related party
transactions in the quarter were in the normal course of business, as
described in note 26 of the Company's consolidated financial
statements for the year ended August 31, 2004.

13. COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS

(a) Certain comparative consolidated amounts have been reclassified
from those previously presented to conform to the presentation of
the fiscal 2005 consolidated financial statements.

(b) The Company revised its balances for goodwill and future income
taxes to reflect a correction in certain tax liabilities recorded
in connection with acquisitions prior to fiscal 2003. The change
was recorded as a reduction in goodwill and did not result in a
change to net income to any previously reported period. The
future tax liability and goodwill balances were each reduced by
$25,000.

Source: Corus Entertainment Inc.

CONTACT: John Cassaday, President and Chief Executive Officer, Corus
Entertainment Inc., (416) 642-3770; Tom Peddie, Senior Vice President & Chief
Financial Officer, Corus Entertainment Inc., (416) 642-3780; Tracy Ewing, Vice
President, Communications, Corus Entertainment Inc., (416) 642-3792

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