CORUS ENTERTAINMENT ANNOUNCES FISCAL 2026 FIRST QUARTER RESULTS

Executive Summary

• Corus Entertainment reported a Q1 FY 2026 net loss of C$11.1 million ($0.06 per share basic), down from a profit in the prior year.
• Consolidated revenue fell 18% to C$267.6 million, with television advertising down 23% and subscriber revenue down 15%.
• Free cash flow turned negative C$53.6 million, driven by lower operating cash and higher cash outflows versus the prior year.

Key Details

• Revenue: C$267.6 M (‑18% YoY) – Television C$245.1 M (‑19%), Radio C$22.5 M (‑4%).
• Segment Profit (Loss): Consolidated C$57.2 M (‑32% YoY); Television C$55.9 M (‑35%), Radio C$5.3 M (+38%).
• Segment Profit Margin: Consolidated 21% (down from 26% YoY).
• Net Loss: C$11.1 M attributable to shareholders; basic & diluted EPS = ($0.06).
• Adjusted Net Loss: C$1.79 M; adjusted basic EPS = ($0.01).
• Free Cash Flow: Negative C$53.6 M (‑428% YoY).
• Cash Position: C$45.2 M cash & equivalents at quarter end; C$35.0 M available under revolving credit facility.
• Debt: Long‑term debt C$1,139.9 M; net debt to segment profit 7.39× (up from 6.01×).
• Credit Facility Amendment: On Oct 29 2025, amendment increased maximum revolving draw from $75 M to $125 M.
• Recapitalization Transaction: Proposed transaction announced Nov 3 2025; board recommends shareholders vote in favor at meetings on Jan 30 2026. Expected to reduce indebtedness >$500 M and save up to $40 M annual interest.
• Operational Highlights: New programming slate for Global, Showcase, W Network, Flavour, Home, and The HISTORY® Channel announced for Winter 2025/2026 (50+ new/returning series).

Notable Quotes

“Our first quarter results were in line with our expectations, with persistent market headwinds …” – John Gossling, CEO
“The proposed recapitalization transaction is expected to deliver substantial balance‑sheet improvements…” – John Gossling, CEO

Materiality Assessment: Material – Negative (significant decline in revenue, profit and cash flow; material recapitalization proposal).