CORUS ENTERTAINMENT ANNOUNCES FISCAL 2011 SECOND QUARTER RESULTS

CORUS ENTERTAINMENT ANNOUNCES FISCAL 2011 SECOND QUARTER RESULTS

-- Consolidated revenues up 8% and segment profit up 11%
-- Television specialty ad growth of 14%
-- Radio revenue growth of 5% led by Ontario, up 11%
-- Basic earnings per share from continuing operations of $0.34
for the quarter compared to $0.18 last year ($0.30 on an
adjusted basis last year)

TORONTO, April 14 /PRNewswire-FirstCall/ - Corus Entertainment Inc. (TSX: CJR.B)
announced its second quarter financial results today.

"Strong advertising and subscriber revenue growth continued in the
second quarter.  Coupled with our cost containment initiatives, we
delivered double digit segment profit growth in both our Radio and
Television divisions, demonstrating the power of operating leverage,"
said John Cassaday, President and CEO of Corus Entertainment.  "We are
also pleased with two major accomplishments subsequent to the quarter -
exceeding our key milestone of 1 million paid pay television
subscribers and the launch of OWN on March 1st."

Financial Highlights

(unaudited) Three months ended Six months ended

(in thousands of Canadian dollars February 28, February 28,
except per share amounts)

2011 2010 2011 2010

Revenues

Radio 42,647 40,527 97,286 93,479

Television 148,429 136,973 315,946 288,228

191,076 177,500 413,232 381,707

Segment profit

Radio 9,672 8,174 28,186 26,724

Television 59,017 53,204 137,117 120,272

Corporate (7,730) (6,328) (15,690) (11,991)

60,959 55,050 149,613 135,005

Net income from continuing 27,445 14,239 71,115 84,231
operations

Basic earnings per share

From continuing operations $ 0.34 $ 0.18 $ 0.87 $ 1.05

From discontinued operations $0.05 $ 0.00 $ 0.08 $ 0.05

$0.39 $ 0.18 $ 0.95 $ 1.10

Consolidated Results from Continuing Operations

Consolidated revenues for the three months ended February 28, 2011 were
$191.1 million, up 8% from $177.5 million last year.  Consolidated
segment profit was $61.0 million, up 11% from $55.1 million last year. 
Net income for the quarter was $27.4 million ($0.34 basic and $0.33
diluted), compared to $14.2 million ($0.18 basic and diluted) last
year.  Net income for the prior year includes a debt refinancing cost
of $14.3 million.  Removing the impact of this item results in an
adjusted second quarter basic earnings per share of $0.30 in the prior
year.

Consolidated revenues for the six months ended February 28, 2011 were
$413.2 million, up 8% from $381.7 million last year.  Consolidated
segment profit was $149.6 million, up 11% from $135.0 million last
year.  Net income for the six month period was $71.1 million ($0.87
basic and diluted), compared to a net income of $84.2 million ($1.05
basic and $1.03 diluted) last year.  Net income for the six month
period for the prior year includes a debt refinancing cost of $14.3
million, a $14.0 million reversal of a disputed regulatory fee accrual
and a $14.2 million recovery due to income tax rate changes.  Removing
the impact of these items results in an adjusted six month basic
earnings per share of $0.88 in the prior year.

Operational Results - Highlights

Radio

-- Segment revenues increased 5% in the second quarter and 4%
year-to-date
-- Segment profit increased 18% in the second quarter and 5%
year-to-date
-- Revenues for the quarter increased 11% in Ontario and remained
flat in the West

Television

-- Segment revenues increased 8% in the second quarter and 10%
year-to-date
-- Segment profit increased 11% in the second quarter and 14%
year-to-date
-- Specialty advertising revenues increased 14% in the second
quarter and 15% year-to-date
-- Subscriber revenues increased 6% in the second quarter and 8%
year-to-date
-- Movie Central finished the quarter with 989,000 subscribers, up
2% from the second quarter of 2010 (as at March 31, 2011,
exceeded 1 million subscribers)

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, television broadcasting,
children's book publishing and children's animation.  The Company's
multimedia entertainment brands include YTV, Treehouse, Nickelodeon
(Canada), W Network, OWN: Oprah Winfrey Network (Canada), CosmoTV,
Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can
Press and radio stations including CKNW AM 980, 99.3 The FOX, Country
105, 630 CHED, Q107, and 102.1 the Edge.  Corus creates engaging
branded entertainment experiences for its audiences across multiple
platforms.  A publicly traded company, Corus is listed on the Toronto
Stock Exchange (CJR.B).  Experience Corus on the web at www.corusent.com.

The unaudited consolidated financial statements and accompanying notes
for the three months ended February 28, 2011 and Management's
Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for April
14, 2011 at 9:00 a.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 1.800.678.2887 and
for local/international callers is 416.641.6653.  PowerPoint slides for
the call will be posted at 8:45 a.m. ET on April 14, 2011 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) As at February 28, As at August 31,

(in thousands of Canadian 2011 2010
dollars)

ASSETS

Current

Cash and cash equivalents 56,478 7,969

Accounts receivable 187,286 161,645

Income tax recoverable - 1,781

Prepaid expenses and other 11,634 17,040

Program and film rights 146,186 159,526

Future tax asset 5,758 6,129

Current assets of - 14,951
discontinued operations

Total current assets 407,342 369,041

Tax credits receivable 43,948 39,597

Investments and other 27,761 22,595
assets

Property, plant and 170,694 147,905
equipment

Program and film rights 108,306 88,484

Film investments 94,919 100,454

Broadcast licenses 541,248 541,248

Goodwill 671,827 671,827

Long-term assets of - 78,104
discontinued operations

2,066,045 2,059,255

LIABILITIES AND
SHAREHOLDERS' EQUITY

Current

Accounts payable and 212,163 193,342
accrued liabilities

Income taxes payable 4,754 336

Current liabilities of - 9,744
discontinued operations

Total current liabilities 216,917 203,422

Long-term debt 648,587 691,891

Other long-term liabilities 79,068 88,003

Future tax liability 91,086 89,651

Long-term liabilities of - 12,285
discontinued operations

Total liabilities 1,035,658 1,085,252

Non-controlling interest 17,517 18,055

SHAREHOLDERS' EQUITY

Share capital 869,622 856,655

Contributed surplus 10,274 11,780

Retained earnings 145,915 98,669

Accumulated other (12,941) (11,156)
comprehensive income

Total shareholders' equity 1,012,870 955,948

2,066,045 2,059,255

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF INCOME

Three months ended Six months ended

(unaudited) February 28, February 28,

(in thousands of Canadian 2011 2010 2011 2010
dollars except per share
amounts)

Revenues 191,076 177,500 413,232 381,707

Direct cost of sales, general 130,117 122,450 263,619 246,702
and administrative expenses

Depreciation 6,053 4,745 12,161 8,649

Interest expense 15,681 10,475 31,190 19,547

Disputed regulatory fees - - - (14,015)

Debt refinancing - 14,256 - 14,256

Restructuring - - 2,249 -

Other expense (income), net (1,125) 3,141 (1,242) 1,367

Income from continuing
operations before income taxes
and non-controlling interest 40,350 22,433 105,255 105,201

Income tax expense 10,897 6,864 30,312 18,462

Non-controlling interest 2,008 1,330 3,828 2,508

Net income for the period from 27,445 14,239 71,115 84,231
continuing operations

Net income for the period from 4,192 364 6,743 4,280
discontinued operations

Net income for the period 31,637 14,603 77,858 88,511

Basic earnings per share

From continuing operations $ 0.34 $ 0.18 $ 0.87 $ 1.05

From discontinued operations $ 0.05 $ 0.00 $ 0.08 $ 0.05

$ 0.39 $ 0.18 $ 0.95 $ 1.10

Diluted earnings per share

From continuing operations $ 0.33 $ 0.18 $ 0.87 $ 1.03

From discontinued operations $ 0.05 $ 0.00 $ 0.08 $ 0.05

$ 0.38 $ 0.18 $ 0.95 $ 1.08

CONSOLIDATED STATEMENTS OF COMPREHENSIVEINCOME

Three months ended Six months ended

(unaudited) February 28, February 28,

(in thousands of Canadian 2011 2010 2011 2010
dollars except per share
amounts)

Netincome for the period 31,637 14,603 77,858 88,511

Other comprehensive income
(loss), net of tax

Unrealized foreign currency (1,108) (79) (1,861) (524)
translation adjustment

Unrealized change in fair (95) (27) 76 12
value of available-for-sale
investments, net of tax

Unrealized change in fair - 1,985 - 3,431
value of cash flow hedges, net
of tax

Recognition of change in fair - 9,244 - 9,244
value of cash flow hedge in net
income, net of tax

(1,203) 11,123 (1,785) 12,163

Comprehensive income for the 30,434 25,726 76,073 100,674
period

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Three months ended Six months ended

(unaudited) February 28, February 28,

(in thousands of Canadian dollars) 2011 2010 2011 2010

Share capital

Balance, beginning of period 861,183 842,340 856,655 840,602

Issuance of shares under stock 4,988 3,329 7,911 4,731
option plan

Other 3,451 1,078 5,056 1,414

Balance, end of period 869,622 846,747 869,622 846,747

Contributed surplus

Balance, beginning of period 11,392 14,394 11,780 17,303

Stock-based compensation 289 954 522 1,853

Settlement and modification of - - - (3,473)
long-term incentive plan

Exercise of stock options (1,407) (171) (2,028) (506)

Balance, end of period 10,274 15,177 10,274 15,177

Retained earnings

Balance, beginning of period 129,632 82,271 98,669 20,380

Net income for the period 31,637 14,603 77,858 88,511

Dividends (15,354) (12,089) (30,612) (24,106)

Balance, end of period 145,915 84,785 145,915 84,785

Accumulated other comprehensive
loss

Balance, beginning of period (11,738) (22,967) (11,156) (24,007)

Other comprehensive income (loss), (1,203) 11,123 (1,785) 12,163
net of tax

Balance, end of period (12,941) (11,844) (12,941) (11,844)

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended Six months ended

(unaudited) February 28, February 28,

(in thousands of 2011 2010 2011 2010
Canadian dollars)

OPERATING ACTIVITIES

Net income for the 31,637 14,603 77,858 88,511
period

Earnings from (4,192) (364) (6,743) (4,280)
discontinued
operations

Add (deduct)
non-cash items:

Depreciation 6,053 4,745 12,161 8,649

Amortization of 43,152 41,404 85,227 83,073
program rights

Amortization of 11,189 9,609 22,111 15,142
film investments

Future income 778 1,828 824 (13,852)
taxes

Non-controlling 2,008 1,330 3,828 2,508
interest

Stock option 289 3,126 522 3,330
expense

Imputed interest 2,484 1,772 5,084 3,468

Debt refinancing - 14,256 - 14,256

Other (1,327) (297) (1,594) (388)

Net change in 17,972 17,848 (13,792) 1,325
non-cash working
capital balances
related to
operations

Payment of program (34,975) (42,663) (73,128) (84,273)
and film rights

Net additions to (11,270) (15,036) (33,120) (32,997)
film investments

Cash provided by 63,798 52,161 79,238 84,472
operating activities
from continuing
operations

Cash provided by (2,546) 373 (2,542) 389
(used in) operating
activities from
discontinued
operations

Cash provided by 61,252 52,534 76,696 84,861
operating activities

INVESTING ACTIVITIES

Additions to (13,952) (23,421) (27,215) (29,506)
property, plant and
equipment

Business - - - (36,000)
combinations

Net cash flows for (3,382) 1,773 (4,267) 2,864
investments and
other assets

Decrease in public (357) (240) (582) (478)
benefits associated
with acquisitions

Cash used in (17,691) (21,888) (32,064) (63,120)
investing activities
from continuing
operations

Cash provided by 75,000 (371) 74,996 (392)
(used in) investing
activities from
discontinued
operations

Cash provided by 57,309 (22,259) 42,932 (63,512)
(used in) investing
activities

FINANCING ACTIVITIES

Decrease in bank (74,956) (469,566) (44,764) (429,681)
loans

Issuance of senior - 500,000 - 500,000
unsecured guaranteed
notes

Financing and swap - (30,997) - (30,997)
termination fees

Issuance of shares 3,581 3,158 5,884 4,225
under stock option
plan

Dividends paid (11,958) (10,973) (23,549) (22,647)

Dividend paid to (160) (5,400) (4,366) (9,260)
non-controlling
interest

Other (2,144) - (4,324) (3,444)

Cash provided by (85,637) (13,778) (71,119) 8,196
(used in) financing
activities from
continuing
operations

Cash provided by - - - -
financing activities
from discontinued
operations

Cash provided by (85,637) (13,778) (71,119) 8,196
(used in) financing
activities

Net change in cash (39,530) 16,495 (23,945) 29,548
and cash equivalents
during the period
from continuing
operations

Net change in cash 72,454 2 72,454) (3)
and cash equivalents
during the period
from discontinued
operations

Net change in cash 32,924 16,497 48,509 29,545
and cash
equivalents during
the period

Cash and cash 23,554 23,970 7,969 10,922
equivalents,
beginning of period

Cash and cash 56,478 40,467 56,478 40,467
equivalents, end of
period

CORUS ENTERTAINMENT INC.

BUSINESS SEGMENT INFORMATION

(unaudited)

(in thousands of Canadian dollars except per share amounts)

Three months ended February 28, 2011

Radio Television Corporate Consolidated

Revenues 42,647 148,429 - 191,076

Direct cost of sales, 32,975 89,412 7,730 130,117
general and administrative
expenses

Segment profit (loss) 9,672 59,017 (7,730) 60,959

Depreciation 738 816 4,499 6,053

Interest expense 966 6,129 8,586 15,681

Other expense (income), net (514) (1,585) 974 (1,125)

Income (loss) before income 8,482 53,657 (21,789) 40,350
taxes and non-controlling
interest

Three months ended February 28, 2010

Radio Television Corporate Consolidated

Revenues 40,527 136,973 - 177,500

Direct cost of sales, 32,353 83,769 6,328 122,450
general and administrative
expenses

Segment profit (loss) 8,174 53,204 (6,328) 55,050

Depreciation 1,020 1,871 1,854 4,745

Interest expense 1,034 1,180 8,261 10,475

Debt refinancing - - 14,256 14,256

Other expense (income), net - 560 2,581 3,141

Income (loss) before income
taxes and non-

controlling interest 6,120 49,593 (33,280) 22,433

Six months ended February
28, 2011

Radio Television Corporate Consolidated

Revenues 97,286 315,946 - 413,232

Direct cost of sales,
general

and administrative 69,100 178,829 15,690 263,619
expenses

Segment profit (loss) 28,186 137,117 (15,690) 149,613

Depreciation 1,496 2,519 8,146 12,161

Interest expense 2,472 12,277 16,441 31,190

Restructuring charges 671 3 1,575 2,249

Other expense (income), net (494) (2,218) 1,470 (1,242)

Income (loss) before income
taxes and non-

controlling interest 24,041 124,536 (43,322) 105,255

Six months ended February
28, 2010

Radio Television Corporate Consolidated

Revenues 93,479 288,228 - 381,707

Direct cost of sales,
general

and administrative 66,755 167,956 11,991 246,702
expenses

Segment profit (loss) 26,724 120,272 (11,991) 135,005

Depreciation 2,078 3,777 2,794 8,649

Interest expense 2,146 2,355 15,046 19,547

Disputed regulatory fees (6,722) (7,293) - (14,015)

Debt refinancing - - 14,256 14,256

Other expense (income), net 101 (693) 1,959 1,367

Income (loss) before income
taxes and non-

controlling interest 29,121 122,126 (46,046) 105,201

Revenues by segment

Three months ended Six months ended

February 28, February 28,

2011 2010 2011 2010

Radio

West 19,737 19,846 45,802 46,078

Ontario 22,910 20,681 51,484 47,401

42,647 40,527 97,286 93,479

Television

Kids 64,813 56,145 142,826 124,644

Specialty and Pay 83,616 80,828 173,120 163,584

148,429 136,973 315,946 288,228

Segment profit

Three months ended Six months ended

February 28, February 28,

2011 2010 2011 2010

Radio

West 4,610 5,054 13,608 14,754

Ontario 5,062 3,120 14,578 11,970

9,672 8,174 28,186 26,724

Television

Kids 22,936 22,257 64,362 55,566

Specialty and Pay 36,081 30,947 72,755 64,706

59,017 53,204 137,117 120,272

Revenues by type

Three months ended Six months ended

February 28, February 28,

2011 2010 2011 2010

Advertising 82,179 77,373 202,499 188,483

Subscriber fees 75,599 71,478 149,361 138,897

Other 33,298 28,649 61,372 54,327

191,076 177,500 413,232 381,707

 

 

 

 

SOURCE Corus Entertainment Inc.

Corus Entertainment Inc.

CONTACT: John Cassaday        Tom Peddie        Sally TindalPresident and Chief Executive Officer        Executive Vice President and Chief         Director, CommunicationsCorus Entertainment Inc.        Financial Officer          Corus Entertainment Inc.416.479.6018        Corus Entertainment Inc.        416.479.6107         416.479.6080  

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