Corus Entertainment posts solid Q2 results:

Focused Growth Strategy Delivers Strong Performance in Revenue and EBITDA



Apr 25, 2001, 01:00 ET from Corus Entertainment Inc.

    TORONTO, April 25 /PRNewswire/ - Corus Entertainment Inc. (TSE: CJR.B;
 NYSE:   CJR) announced record earnings and sales for the sixth consecutive
 quarter today. The results were powered by several strategic acquisitions and
 continued outstanding results from the television operations.
     The consolidated results for the three-month period ending February 28,
 2001 included a 225% increase in revenues, from CDN$41.4 million last year to
 CDN$134.7 million, and a 163% increase in EBITDA (income before interest,
 income taxes, depreciation, amortization and other) from CDN$10.1 million last
 year to CDN$26.6 million. Earnings per share for the quarter were CDN$0.33
 (loss of CDN$0.01 excluding a future income tax recovery) compared with
 CDN$2.23 last year (loss of CDN$0.11 excluding gain from disposal of
 investments). Cash flow per share was CDN$1.09 compared with CDN$0.04 last
 year.
     "The benefits of a balanced portfolio were evident in our strong second
 quarter results" said John Cassaday, President and Chief Executive Officer of
 Corus Entertainment. "Exceptional radio results in several key markets
 demonstrated the promise of our major market cluster strategy. Additionally,
 excellent results from our Western Canada pay television assets and Nelvana's
 first full quarter under Corus' control were highlights this quarter."
     The year-to-date consolidated results included a 172% increase in
 revenues, from CDN$92.8 million last year to CDN$252.2 million and a 135%
 increase in EBITDA from CDN$26.9 million last year to CDN$63.3 million.
 Earnings per share were CDN$0.69 compared with CDN$2.56 last year. Cash flow
 per share was CDN$2.16 compared with CDN$0.43 last year.
     Corus Entertainment's outstanding year-to-date gains in revenue and
 EBITDA include the addition of operating results from a number of acquisitions
 including 29 radio stations (acquired from WIC and Power), Nelvana Limited,
 and Corus Premium Television.
     Continued growth in digital television subscribers, exceptionally strong
 performance from pay television, a booming Alberta economy, and a growing
 market for radio airtime on Corus' popular Toronto stations all helped to
 boost company earnings. Ongoing consolidation of radio operations and
 continued investment in programming point to further improvements in radio
 operating margins for the latter half of the fiscal year.
     "We believe this sixth consecutive quarter of growth clearly demonstrates
 the depth of Corus' assets to our shareholders," added Heather Shaw, Executive
 Chair of the Board of Corus Entertainment. "We continue to make significant
 progress in consolidating our acquisitions while at the same time investing in
 programming to further our growth."
 
 
 
     HIGHLIGHTS
     -------------------------------------------------------------------------
 
                                  Three months ended        Six months ended
     (thousands of Canadian
      dollars except              Feb 28      Feb 29        Feb 28     Feb 29
     per share data)               2001        2000          2001       2000
     (unaudited)
     ------------------------------------------------------------------------
     Revenues                    134,736      41,369       252,213     92,777
 
 
     Income before depreciation,
      amortization, Interest,
      other and income taxes
      ("EBITDA")                  26,577      10,110        63,292     26,942
 
     Net Income                   14,015      67,828        27,837     77,854
      Per share                    $0.33       $2.23         $0.69      $2.56
      Per share fully diluted      $0.33       $2.19         $0.69      $2.52
 
     Cash flow derived from
      operations                  46,234       1,385        87,437     13,203
       Per share basic             $1.09       $0.04         $2.16      $0.43
       Per share fully diluted     $1.06       $0.04         $2.10      $0.43
 
     Weighted average number of
      Class A voting and Class B
      non-voting shares (thousands)
       Basic                      42,522      30,400        40,458     30,400
       Fully diluted              44,228      30,906        42,044     30,906
 
 
     Corus is a Canadian media and entertainment company that has grown
 significantly through acquisitions. Corus competes primarily in three growth
 sectors -- radio, specialty television/programming, and content with the
 following fiscal 2001 acquisitions/divestitures:
 
     - On November 14, 2000, acquired 100% of Nelvana Limited ("Nelvana"), an
       international producer and distributor of children's programming and
       products. Nelvana operates as a new business segment called "Content".
     - On February 28, 2001, completed the acquisition of six radio stations
       in Quebec from Metromedia CMR Broadcasting Inc.
     - On February 28, 2001, disposed of the Quebec television station
       CHAU-TV.
 
 
     Overview of Consolidated Results
     -------------------------------------------------------------------------
 
     Strong performance, particularly in the Programming division, along with
 full quarter inclusion of acquisitions made in fiscal 2000 and first quarter
 2001, resulted in significant growth in revenues, income before depreciation,
 amortization, interest, other and income taxes ("EBITDA") for the quarter and
 year to date.
 
     Second Quarter Results
 
     Revenues for the three months ended February 28, 2001 were $134.7
 million, up 225% from $41.4 million last year. The Programming, Radio and
 Diversified Media and Content divisions all contributed to the growth in
 revenues.
     EBITDA was $26.6 million, an increase of 163% over the same period last
 year. The Programming, Radio and Diversified Media divisions achieved EBITDA
 growth of 98%, 113% and 121% respectively.
     Also included in the quarter was revenue and EBITDA from the Content
 division of $46.2 million and $6.8 million due to the November acquisition of
 Nelvana.
     Net Income in the second quarter of $14.0 million included a pre-tax
 write-down of $1.5 million for the investment in COOLeh.com. Last year's net
 income of $67.8 million included a pre-tax gain of $105.3 million from the
 disposal of the Company's interest in Liberty Digital Inc.
     This quarter includes a future income tax recovery. Future income tax
 assets and liabilities, previously measured using income tax rates at that
 time, were re-measured using reduced income tax rates substantively enacted as
 a result of Federal Budget proposals and release of draft legislation causing
 a large reduction in the company's net future tax liability position.
     Earnings per share for the quarter were $0.33 basic ($0.33 fully diluted)
 compared with $2.23 basic ($2.19 fully diluted) last year. The higher earnings
 per share in the prior year is due to the gain from disposal of investments.
 Earnings per share for the quarter, prior to the future tax recovery, were a
 loss of $0.01 compared to a loss of $0.11 last year (excluding the gain from
 disposal of investments).
     Cash flow derived from operations for the quarter was $46.2 million,
 compared with $1.4 million for the same period last year. Cash flow per share
 for the quarter was $1.09 basic ($1.06 fully diluted) compared with $0.04
 basic ($0.04 fully diluted) last year.
 
     Six Months Year To Date
 
     Revenues for the six months ended February 28, 2001 were $252.2 million,
 up 172 % from $92.8 million last year. The Programming, Radio and Diversified
 Media and Content divisions all contributed to the strong growth in revenues.
     EBITDA was $63.3 million, an increase of 135% over the same period last
 year. The Programming, Radio and Diversified Media divisions achieved EBITDA
 growth of 76%, 128% and 177% respectively.
     Year-to-date revenues and EBITDA also include $55.3 million and $9.8
 million respectively from the November acquisition of Nelvana.
     Net income in the first six months of $27.8 million included a pre-tax
 write-down in investment in COOLeh.com of $1.5 million. Net income in the
 prior year of $77.9 million included a pre-tax gain of $116.6 million from the
 disposal of the Company's interests in Headline Sports Television Network and
 Liberty Digital Inc.
     Earnings per share for the six month period were $0.69 basic ($0.69 fully
 diluted) compared with $2.56 basic ($2.52 fully diluted) last year. The higher
 earnings per share in the prior year is due to the gain from disposal of
 investments.
     Cash flow derived from operations for the six month period was $87.4
 million compared with $13.2 million for the same period last year. Cash flow
 per share was $2.16 basic ($2.10 fully diluted) as of February 28, 2001
 compared with $0.43 basic ($0.43 fully diluted) last year.
 
     Significant Events In The Quarter
     -------------------------------------------------------------------------
 
     - On December 12, 2000, Corus held its first Annual General Meeting at
       the Design Exchange in Toronto.
     - Four Corus radio stations ranked among the highest Web audiences in
       North America. According to Arbitron Webcast Ratings released in
       December, Corus stations took positions 14, 31, 54 and 65 on the list
       of the top audio streaming channels with the highest on-line listening.
       No other Canadian radio station appeared on the Web ratings survey.
     - Corus submitted an application to the CRTC on December 28, 2000 to
       increase its interest in Teletoon from 20% to 40% as a result of its
       acquisition of Nelvana.
     - On January 26, 2001 Corus received approval from the CRTC to acquire
       the remaining 70.1% of Metromedia Broadcasting of Montreal making Corus
       one of Quebec's leading broadcasters with ownership of 12 radio
       stations in the province. This transaction closed on February 28, 2001.
     - On February 27, 2001 Corus announced that it would comply with the
       CRTC's order to sell its shares in The Family Channel Inc. and issued a
       Request Sale Notice to its trustee.
     - On February 27, 2001 YTV launched Yabber.net, the first on-line
       community in Canada that is geared exclusively to 8-14 year olds. The
       groundbreaking Web site offers chat, message boards, e-mail and instant
       messaging/paging for its young Internet-savvy subscribers.
     - On February 28, 2001 Corus announced that it had secured the pay
       television rights to broadcast the highly anticipated seasons two and
       three of The Sopranos for western Canadian audiences and entered into a
       long-term program supply agreement with HBO.
 
     Significant Subsequent Events to the Quarter
     -------------------------------------------------------------------------
 
     - On March 8, 2001 Corus announced two strategic business transactions.
       First, Corus sold its 50% interest in The Family Channel for cash to
       Astral Media for $126.9 million. Second, Corus reached an agreement to
       acquire the Women's Television Network (WTN) from Moffatt
       Communications for $205 million. Both transactions will significantly
       strengthen the business and move Corus closer to its stated objective
       of becoming Canada's leading entertainment company. Each of these
       transactions is subject to CRTC regulatory approval.
     - On March 8, 2001 Corus also announced that it would sell its Western
       Canada's Viewer's Choice Pay-Per-View service to Shaw Communications
       Inc. for $35 million subject to CRTC approval.
     - On March 16, 2001 Corus announced a management realignment in its
       Television Division to address the continued growth in specialty
       television operations. Susan Ross was appointed Vice President and
       General Manager of Children's Television while Bryan Ellis expanded his
       role as Group Vice President for Television to include all adult-
       targeted conventional and specialty television services, in addition
       to DMX Commercial and Digital ADventure.
     - On March 28, 2001 Corus announced it will acquire an additional 30.5%
       of Telelatino, bringing Corus' total interest to 50.5%. The
       transaction is subject to CRTC regulatory approval.
     - In March 2001, at Canadian Music Week, Corus Entertainment dominated
       the awards in the Broadcast category. Corus had a total of 20
       nominations in 11 distinct categories and won in 6 categories.
     - In March 2001, the YTV Web site hit a major milestone with over 2.1
       million page impressions per week. This represents a 40% increase over
       the previous year. The number of people who visit the site each week
       has doubled from 55,000 to 100,841 over a six-month period. The Web
       site is profitable.
     - On April 1, 2001, Superchannel and MovieMax! were re-launched as Movie
       Central, expanding Corus' existing pay-TV service from two to six
       thematic channels, each broadcasting a unique schedule of movies,
       doubling the number of titles currently scheduled each month.
 
     Programming
     -------------------------------------------------------------------------
 
     The Programming division consists of the following: specialty television
 networks YTV, Treehouse TV and Corus' 80% interest in CMT (Country Music
 Television); Corus' 80% interest in DMX Residential, a digital audio service;
 Corus Premium Pay Services of Superchannel, MovieMax! and Viewer's Choice; and
 Corus' 50% interest in Balmur Corus Music ("BCM"), a country music
 entertainment business.
     Revenues for the second quarter increased by 88% to $42.2 million from
 $22.5 million last year. EBITDA was $14.0 million, up 98% from $7.0 million
 last year. EBITDA as a percentage of revenues was 33% for the quarter.
     Excluding Corus Premium Pay Services acquired effective July 2000, second
 quarter revenues and EBITDA were $24.6 million and $7.8 million, up 9% and 11%
 respectively. EBITDA as a percentage of revenues was 32%.
     On a year to date basis, revenues increased 77% to $91.4 million. EBITDA
 was $32.0 million, up from $18.2 million last year. EBITDA as a percentage of
 revenues was 35% for the six month period.
     Excluding Corus Premium Pay Services, year-to-date revenues and EBITDA
 were $58.3 million and $21.1 million, up 13% and 16% respectively. EBITDA
 margin was 36%.
     All programming services contributed to the strong results in the quarter
 and year to date. For the specialty television stations, continued growth in
 affiliate revenues, due to increased Direct-To-Home (DTH) subscribers,
 contributed to the increase in total revenues and EBITDA for the quarter and
 year to date.
 
     Radio
     -------------------------------------------------------------------------
 
     The Radio division is comprised of 49 radio stations situated primarily
 in high growth urban centres in British Columbia, Alberta, Manitoba, Ontario
 and Quebec. The total includes six stations from the acquisition of Metromedia
 Broadcasting which was completed on February 28, 2001. (Metromedia operating
 results are not included in the second quarter).
     Radio revenues, in the traditionally soft second quarter, increased by
 173% to $36.0 million from $13.2 million last year. EBITDA was $6.1 million,
 up from $2.9 million last year. EBITDA as a percentage of revenues was 17% for
 the quarter.
     On a year to date basis, Radio revenues increased 177 % to $81.9 million.
 EBITDA was $19.5 million, up from $8.6 million last year. EBITDA as a
 percentage of revenues was 24% for the six month period. The operating results
 reflect an increase from 14 radio stations a year ago to 43 at February 28,
 2001.
     On a proforma basis, Radio revenues and EBITDA in the second quarter were
 flat compared to last year. We experienced excellent revenue growth in the key
 markets of Toronto, Edmonton and Calgary. However, the gains were offset by
 the performance of Vancouver where we experienced intense competitive pressure
 against our rock format at CFOX. Without the erosion of revenues in Vancouver
 in the second quarter, revenues were up 3% on a proforma basis.
     The Radio division has completed the physical consolidation of facilities
 in Vancouver, Barrie and Hamilton but has yet to realize the cost savings from
 consolidation of facilities in Alberta and Toronto, which are expected to be
 completed by the end of the first quarter of fiscal 2002. Corus expects
 improvement in Radio's EBITDA in the second half of fiscal 2001.
 
     Diversified Media
     -------------------------------------------------------------------------
 
     Diversified Media includes the operations of Digital ADventure, a cable
 advertising service, DMX Commercial, a digital audio service and four
 conventional television stations.
     Revenues for the second quarter were $11.0 million, up 92% from $5.7
 million last year. EBITDA was $2.4 million, up from $1.1 million last year.
 EBITDA as a percentage of revenues was 22% for the quarter.
     On a year-to-date basis, revenues increased 112% to $24.3 million. EBITDA
 was $6.2 million, up from $2.2 million last year. EBITDA as a percentage of
 revenues was 25%.
     The 112% growth in revenues is 109% from the four conventional television
 stations and Sound Products acquired in fiscal 2000 and 3% from organic growth
 in Digital ADventure and DMX Commercial.
     For Digital ADventure, strong performances from the TV Listings, Real
 Estate and Infomercial channels contributed to year-to-date revenue and EBITDA
 growth of 4% and 13%.
     For DMX Commercial, an increase in customer base offset by lower audio
 equipment sales resulted in year-to-date revenue and EBITDA results that were
 consistent with the prior year.
 
     Content
     -------------------------------------------------------------------------
 
     Content includes the operations of Nelvana Limited, an international
 producer and distributor of children's programming and products. As of
 November 14, 2000, Corus effectively owned 100% of Nelvana. Content derives
 revenues from production and distribution, merchandising and publishing.
     Revenues and EBITDA for the quarter were $46.2 million and $6.8 million
 respectively. EBITDA as a percentage of revenues was 15% for the quarter.
     Year-to-date revenues and EBITDA were $55.3 and $9.8 million. EBITDA
 margin was 18%.
     Strong performances were achieved in production and distribution EBITDA
 resulting from higher revenue per episode delivered compared to a year ago.
 This helped to offset lower than expected results from the publishing business
 which were affected by the November and December softening of the retail
 market, particularly in the U.S.
 
 
 
                           CORUS ENTERTAINMENT INC.
                          CONSOLIDATED BALANCE SHEETS
 
                                                      February 28,  August 31,
                                                          2001         2000
     (thousands of Canadian dollars)                  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
     ASSETS
     Current
     Cash and cash equivalents                                 -      372,348
     Accounts receivable                                 101,171       72,076
     Prepaid expenses and other                           15,957       11,248
     Program rights                                       36,772       30,215
     Inventory                                            17,303            -
     Future tax asset                                      2,100            -
     -------------------------------------------------------------------------
     Total current assets                                173,303      485,887
 
     Long-term receivables                                80,138            -
     Investments and other assets                         80,358       94,345
     Program and film rights                              15,684        8,049
     Capital assets, net                                  90,137       67,401
     Deferred charges                                     25,463       15,054
     Film investments, broadcast licenses and
      goodwill                                         1,496,930      758,267
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current
     Bank overdraft                                       11,366            -
     Accounts payable and accrued liabilities            110,659       73,352
     Income taxes payable                                 24,600       12,767
     Future tax liability                                      -        6,904
     Current portion of long-term debt                     3,066        3,000
     -------------------------------------------------------------------------
     Total  current liabilities                          149,691       96,023
 
     Long-term debt                                      502,731      294,355
     Deferred credits                                     51,642       39,350
     Future tax liability                                190,334      171,463
     Minority interest                                     1,402        1,134
     -------------------------------------------------------------------------
     Total  liabilities                                  895,800      602,325
 
     SHAREHOLDERS' EQUITY
     Share capital                                       882,392      670,694
     Retained earnings                                   183,821      155,984
     -------------------------------------------------------------------------
     Total shareholders' equity                        1,066,213      826,678
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Prior period has been restated to conform with the current presentation.
 
 
 
                           CORUS ENTERTAINMENT INC.
                       CONSOLIDATED STATEMENTS OF INCOME
 
                               Three months ended         Six months ended
                               Feb 28       Feb 29       Feb 28       Feb 29
                                2001         2000         2001         2000
 
     (thousands of Canadian
     dollars) (unaudited)
     -------------------------------------------------------------------------
     Revenues                  134,736       41,369      252,213       92,777
     Operating, general and
      administrative expenses  108,159       31,259      188,921       65,835
     -------------------------------------------------------------------------
     Income before depreciation,
      amortization, interest,
      other and income taxes    26,577       10,110       63,292       26,942
     Depreciation                4,513        1,750        8,201        3,420
     Amortization               11,339        2,410       17,512        4,808
     Interest on long-term
      debt                      11,045        7,070       19,827       14,547
     Gain on sale of
      investments                 (855)    (105,286)        (855)    (116,574)
     Other (revenue) expense
      including dividends
      from investees            (1,337)          78       (6,580)         (76)
     -------------------------------------------------------------------------
     Income before income
      taxes                      1,872      104,088       25,187      120,817
     Income tax recovery
      (expense)                 11,780      (36,776)       1,428      (43,953)
     -------------------------------------------------------------------------
     Income before equity
      earnings from
      investees and minority
      interest                  13,652       67,312       26,615       76,864
     Equity earnings from
      investees                    522          587        1,490        1,146
     Minority interest            (159)         (71)        (268)        (156)
     -------------------------------------------------------------------------
     NET INCOME FOR THE
      PERIOD                    14,015       67,828       27,837       77,854
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
        Earnings per share -
         Class A voting and
         Class B non-voting
          Basic                  $0.33        $2.23        $0.69        $2.56
          Fully diluted          $0.33        $2.19        $0.69        $2.52
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
                           CORUS ENTERTAINMENT INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
                               Three months ended         Six months ended
     (thousands of Canadian    Feb 28       Feb 29       Feb 28       Feb 29
     dollars) (unaudited)       2001         2000         2001         2000
     -------------------------------------------------------------------------
     OPERATING ACTIVITIES
     Net income                 14,015       67,828       27,837       77,854
     Non-cash items:
       Depreciation              4,513        1,750        8,201        3,420
       Amortization             11,339        2,410       17,512        4,808
       Amortization of
        program and film
        rights                  35,651        5,209       54,862       11,078
       Future income taxes     (19,147)      30,155      (19,719)      33,987
       Equity earnings from
        investees                 (522)        (587)      (1,490)      (1,146)
       Gain on sale of
        investments               (855)    (105,286)        (855)    (116,574)
       Asset write-down          1,530            -        1,530            -
       Minority interest           159           71          268          156
       Other                      (449)        (165)        (709)        (380)
     -------------------------------------------------------------------------
     Cash flow derived from
      operations                46,234        1,385       87,437       13,203
     Net change in non-cash
      working capital balances
      related to operations        479       10,139        5,629       12,293
     -------------------------------------------------------------------------
     Cash provided by
      operating activities      46,713       11,524       93,066       25,496
     -------------------------------------------------------------------------
 
     INVESTING ACTIVITIES
     Additions to capital
      assets                    (8,474)      (2,101)     (14,446)      (4,907)
     Net proceeds from sale
      of investment                  -         (373)           -       15,998
     Proceeds from disposal      1,619            -        1,619            -
     Business acquisitions    (145,730)           -     (461,807)        (403)
     Additions to
      investments               (7,092)      (3,232)     (14,783)     (10,507)
     Payments of program
      rights and film
      investments              (48,567)      (6,004)     (69,430)     (14,781)
     Additions to deferred
      charges                   (2,017)        (986)      (2,349)      (8,584)
     Dividends received            400          300          400          300
     Other                       2,075         (231)           -          162
     -------------------------------------------------------------------------
     Cash (used in)
      investing activities    (207,786)     (12,627)    (560,796)     (22,722)
     -------------------------------------------------------------------------
 
     FINANCING ACTIVITIES
     Increase in long-term
      debt                     119,158          336      189,158          336
     Repayment of long-term
      debt                    (100,005)           -     (105,818)           -
     Issuance of shares            676            -          676            -
     -------------------------------------------------------------------------
     Cash provided by
      financing activities      19,829          336       84,016          336
     -------------------------------------------------------------------------
     Net increase (decrease)
      in cash and cash
      equivalents during the
      period                  (141,244)        (767)    (383,714)       3,110
     Cash and cash
      equivalents, beginning
      of the period            129,878        4,138      372,348          261
     -------------------------------------------------------------------------
     Cash and cash
      equivalents (bank
      overdraft), end of the
      period                   (11,366)       3,371      (11,366)       3,371
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Cash flow derived from
      operations per share
     Basic                       $1.09        $0.04        $2.16        $0.43
     Fully diluted               $1.06        $0.04        $2.10        $0.43
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
                                  SCHEDULE A
                           CORUS ENTERTAINMENT INC.
                             SEGMENTED INFORMATION
 
                               Three months ended         Six months ended
     (thousands of Canadian    Feb 28       Feb 29       Feb 28       Feb 29
     dollars) (unaudited)       2001         2000         2001         2000
     -------------------------------------------------------------------------
     Revenues
       Programming              42,239       22,457       91,431       51,757
       Radio                    35,981       13,177       81,892       29,576
       Diversified Media        11,014        5,735       24,352       11,444
       Content - Production,
                 Distribution &
                 Merchandising  35,300            -       40,852            -
               - Publishing     10,924            -       14,408
       Eliminations               (722)           -         (722)           -
     -------------------------------------------------------------------------
                               134,736       41,369      252,213       92,777
     -------------------------------------------------------------------------
 
     Income before deprecia-
      tion, amortization,
      interest, other and
      income taxes ("EBITDA")
       Programming              13,960        7,041       31,982       18,187
       Radio                     6,114        2,871       19,530        8,580
       Diversified Media         2,415        1,093        6,194        2,236
       Content - Production,
                 Distribution &
                 Merchandising   6,844            -        8,544            -
               - Publishing        (18)           -        1,223            -
       Corporate                (2,225)        (895)      (3,668)      (2,061)
       Eliminations               (513)           -         (513)           -
     -------------------------------------------------------------------------
                                26,577       10,110       63,292       26,942
     -------------------------------------------------------------------------
 
     EBITDA as a % of revenues
       Programming                  33%          31%          35%          35%
       Radio                        17%          22%          24%          29%
       Diversified Media            22%          19%          25%          20%
       Content - Production,
                 Distribution &
                 Merchandising      19%           -           21%           -
               - Publishing          -            -            8%           -
     -------------------------------------------------------------------------
                                    20%          24%          25%          29%
     -------------------------------------------------------------------------
 
 
                                                        Feb 28,       Aug 31,
                                                         2001          2000
     (thousands of Canadian dollars)                  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
     Segment assets
       Programming                                       322,020      297,211
       Radio                                             461,659      418,597
       Diversified Media                                 143,947      156,079
       Content - Production, Distribution &
                 Merchandising                           257,320            -
               - Publishing                               41,321            -
       Corporate                                         736,259      557,116
       Eliminations                                         (513)           -
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
     Corus Entertainment is one of Canada's leading entertainment companies
 with a strategic focus on children's programming and music. Its principal
 assets consist of 49 radio stations, specialty, pay and conventional
 television services, and Nelvana Limited, an international producer and
 distributor of children's programming and products. Corus is also prominent in
 the digital music market and various advertising service companies and has
 approval for 19 new digital television services. A publicly traded company,
 Corus is listed on the Toronto (CJR.B) and New York (CJR) Exchanges.
 
     Certain statements in this press release may constitute forward-looking
 statements. Such forward-looking statements involve risks, uncertainties and
 other factors which may cause the actual results, performance, or achievement
 of the company to be materially different from any future results performance
 or achievements expressed or implied by such forward-looking documents.
 
 
 

SOURCE Corus Entertainment Inc.
    TORONTO, April 25 /PRNewswire/ - Corus Entertainment Inc. (TSE: CJR.B;
 NYSE:   CJR) announced record earnings and sales for the sixth consecutive
 quarter today. The results were powered by several strategic acquisitions and
 continued outstanding results from the television operations.
     The consolidated results for the three-month period ending February 28,
 2001 included a 225% increase in revenues, from CDN$41.4 million last year to
 CDN$134.7 million, and a 163% increase in EBITDA (income before interest,
 income taxes, depreciation, amortization and other) from CDN$10.1 million last
 year to CDN$26.6 million. Earnings per share for the quarter were CDN$0.33
 (loss of CDN$0.01 excluding a future income tax recovery) compared with
 CDN$2.23 last year (loss of CDN$0.11 excluding gain from disposal of
 investments). Cash flow per share was CDN$1.09 compared with CDN$0.04 last
 year.
     "The benefits of a balanced portfolio were evident in our strong second
 quarter results" said John Cassaday, President and Chief Executive Officer of
 Corus Entertainment. "Exceptional radio results in several key markets
 demonstrated the promise of our major market cluster strategy. Additionally,
 excellent results from our Western Canada pay television assets and Nelvana's
 first full quarter under Corus' control were highlights this quarter."
     The year-to-date consolidated results included a 172% increase in
 revenues, from CDN$92.8 million last year to CDN$252.2 million and a 135%
 increase in EBITDA from CDN$26.9 million last year to CDN$63.3 million.
 Earnings per share were CDN$0.69 compared with CDN$2.56 last year. Cash flow
 per share was CDN$2.16 compared with CDN$0.43 last year.
     Corus Entertainment's outstanding year-to-date gains in revenue and
 EBITDA include the addition of operating results from a number of acquisitions
 including 29 radio stations (acquired from WIC and Power), Nelvana Limited,
 and Corus Premium Television.
     Continued growth in digital television subscribers, exceptionally strong
 performance from pay television, a booming Alberta economy, and a growing
 market for radio airtime on Corus' popular Toronto stations all helped to
 boost company earnings. Ongoing consolidation of radio operations and
 continued investment in programming point to further improvements in radio
 operating margins for the latter half of the fiscal year.
     "We believe this sixth consecutive quarter of growth clearly demonstrates
 the depth of Corus' assets to our shareholders," added Heather Shaw, Executive
 Chair of the Board of Corus Entertainment. "We continue to make significant
 progress in consolidating our acquisitions while at the same time investing in
 programming to further our growth."
 
 
 
     HIGHLIGHTS
     -------------------------------------------------------------------------
 
                                  Three months ended        Six months ended
     (thousands of Canadian
      dollars except              Feb 28      Feb 29        Feb 28     Feb 29
     per share data)               2001        2000          2001       2000
     (unaudited)
     ------------------------------------------------------------------------
     Revenues                    134,736      41,369       252,213     92,777
 
 
     Income before depreciation,
      amortization, Interest,
      other and income taxes
      ("EBITDA")                  26,577      10,110        63,292     26,942
 
     Net Income                   14,015      67,828        27,837     77,854
      Per share                    $0.33       $2.23         $0.69      $2.56
      Per share fully diluted      $0.33       $2.19         $0.69      $2.52
 
     Cash flow derived from
      operations                  46,234       1,385        87,437     13,203
       Per share basic             $1.09       $0.04         $2.16      $0.43
       Per share fully diluted     $1.06       $0.04         $2.10      $0.43
 
     Weighted average number of
      Class A voting and Class B
      non-voting shares (thousands)
       Basic                      42,522      30,400        40,458     30,400
       Fully diluted              44,228      30,906        42,044     30,906
 
 
     Corus is a Canadian media and entertainment company that has grown
 significantly through acquisitions. Corus competes primarily in three growth
 sectors -- radio, specialty television/programming, and content with the
 following fiscal 2001 acquisitions/divestitures:
 
     - On November 14, 2000, acquired 100% of Nelvana Limited ("Nelvana"), an
       international producer and distributor of children's programming and
       products. Nelvana operates as a new business segment called "Content".
     - On February 28, 2001, completed the acquisition of six radio stations
       in Quebec from Metromedia CMR Broadcasting Inc.
     - On February 28, 2001, disposed of the Quebec television station
       CHAU-TV.
 
 
     Overview of Consolidated Results
     -------------------------------------------------------------------------
 
     Strong performance, particularly in the Programming division, along with
 full quarter inclusion of acquisitions made in fiscal 2000 and first quarter
 2001, resulted in significant growth in revenues, income before depreciation,
 amortization, interest, other and income taxes ("EBITDA") for the quarter and
 year to date.
 
     Second Quarter Results
 
     Revenues for the three months ended February 28, 2001 were $134.7
 million, up 225% from $41.4 million last year. The Programming, Radio and
 Diversified Media and Content divisions all contributed to the growth in
 revenues.
     EBITDA was $26.6 million, an increase of 163% over the same period last
 year. The Programming, Radio and Diversified Media divisions achieved EBITDA
 growth of 98%, 113% and 121% respectively.
     Also included in the quarter was revenue and EBITDA from the Content
 division of $46.2 million and $6.8 million due to the November acquisition of
 Nelvana.
     Net Income in the second quarter of $14.0 million included a pre-tax
 write-down of $1.5 million for the investment in COOLeh.com. Last year's net
 income of $67.8 million included a pre-tax gain of $105.3 million from the
 disposal of the Company's interest in Liberty Digital Inc.
     This quarter includes a future income tax recovery. Future income tax
 assets and liabilities, previously measured using income tax rates at that
 time, were re-measured using reduced income tax rates substantively enacted as
 a result of Federal Budget proposals and release of draft legislation causing
 a large reduction in the company's net future tax liability position.
     Earnings per share for the quarter were $0.33 basic ($0.33 fully diluted)
 compared with $2.23 basic ($2.19 fully diluted) last year. The higher earnings
 per share in the prior year is due to the gain from disposal of investments.
 Earnings per share for the quarter, prior to the future tax recovery, were a
 loss of $0.01 compared to a loss of $0.11 last year (excluding the gain from
 disposal of investments).
     Cash flow derived from operations for the quarter was $46.2 million,
 compared with $1.4 million for the same period last year. Cash flow per share
 for the quarter was $1.09 basic ($1.06 fully diluted) compared with $0.04
 basic ($0.04 fully diluted) last year.
 
     Six Months Year To Date
 
     Revenues for the six months ended February 28, 2001 were $252.2 million,
 up 172 % from $92.8 million last year. The Programming, Radio and Diversified
 Media and Content divisions all contributed to the strong growth in revenues.
     EBITDA was $63.3 million, an increase of 135% over the same period last
 year. The Programming, Radio and Diversified Media divisions achieved EBITDA
 growth of 76%, 128% and 177% respectively.
     Year-to-date revenues and EBITDA also include $55.3 million and $9.8
 million respectively from the November acquisition of Nelvana.
     Net income in the first six months of $27.8 million included a pre-tax
 write-down in investment in COOLeh.com of $1.5 million. Net income in the
 prior year of $77.9 million included a pre-tax gain of $116.6 million from the
 disposal of the Company's interests in Headline Sports Television Network and
 Liberty Digital Inc.
     Earnings per share for the six month period were $0.69 basic ($0.69 fully
 diluted) compared with $2.56 basic ($2.52 fully diluted) last year. The higher
 earnings per share in the prior year is due to the gain from disposal of
 investments.
     Cash flow derived from operations for the six month period was $87.4
 million compared with $13.2 million for the same period last year. Cash flow
 per share was $2.16 basic ($2.10 fully diluted) as of February 28, 2001
 compared with $0.43 basic ($0.43 fully diluted) last year.
 
     Significant Events In The Quarter
     -------------------------------------------------------------------------
 
     - On December 12, 2000, Corus held its first Annual General Meeting at
       the Design Exchange in Toronto.
     - Four Corus radio stations ranked among the highest Web audiences in
       North America. According to Arbitron Webcast Ratings released in
       December, Corus stations took positions 14, 31, 54 and 65 on the list
       of the top audio streaming channels with the highest on-line listening.
       No other Canadian radio station appeared on the Web ratings survey.
     - Corus submitted an application to the CRTC on December 28, 2000 to
       increase its interest in Teletoon from 20% to 40% as a result of its
       acquisition of Nelvana.
     - On January 26, 2001 Corus received approval from the CRTC to acquire
       the remaining 70.1% of Metromedia Broadcasting of Montreal making Corus
       one of Quebec's leading broadcasters with ownership of 12 radio
       stations in the province. This transaction closed on February 28, 2001.
     - On February 27, 2001 Corus announced that it would comply with the
       CRTC's order to sell its shares in The Family Channel Inc. and issued a
       Request Sale Notice to its trustee.
     - On February 27, 2001 YTV launched Yabber.net, the first on-line
       community in Canada that is geared exclusively to 8-14 year olds. The
       groundbreaking Web site offers chat, message boards, e-mail and instant
       messaging/paging for its young Internet-savvy subscribers.
     - On February 28, 2001 Corus announced that it had secured the pay
       television rights to broadcast the highly anticipated seasons two and
       three of The Sopranos for western Canadian audiences and entered into a
       long-term program supply agreement with HBO.
 
     Significant Subsequent Events to the Quarter
     -------------------------------------------------------------------------
 
     - On March 8, 2001 Corus announced two strategic business transactions.
       First, Corus sold its 50% interest in The Family Channel for cash to
       Astral Media for $126.9 million. Second, Corus reached an agreement to
       acquire the Women's Television Network (WTN) from Moffatt
       Communications for $205 million. Both transactions will significantly
       strengthen the business and move Corus closer to its stated objective
       of becoming Canada's leading entertainment company. Each of these
       transactions is subject to CRTC regulatory approval.
     - On March 8, 2001 Corus also announced that it would sell its Western
       Canada's Viewer's Choice Pay-Per-View service to Shaw Communications
       Inc. for $35 million subject to CRTC approval.
     - On March 16, 2001 Corus announced a management realignment in its
       Television Division to address the continued growth in specialty
       television operations. Susan Ross was appointed Vice President and
       General Manager of Children's Television while Bryan Ellis expanded his
       role as Group Vice President for Television to include all adult-
       targeted conventional and specialty television services, in addition
       to DMX Commercial and Digital ADventure.
     - On March 28, 2001 Corus announced it will acquire an additional 30.5%
       of Telelatino, bringing Corus' total interest to 50.5%. The
       transaction is subject to CRTC regulatory approval.
     - In March 2001, at Canadian Music Week, Corus Entertainment dominated
       the awards in the Broadcast category. Corus had a total of 20
       nominations in 11 distinct categories and won in 6 categories.
     - In March 2001, the YTV Web site hit a major milestone with over 2.1
       million page impressions per week. This represents a 40% increase over
       the previous year. The number of people who visit the site each week
       has doubled from 55,000 to 100,841 over a six-month period. The Web
       site is profitable.
     - On April 1, 2001, Superchannel and MovieMax! were re-launched as Movie
       Central, expanding Corus' existing pay-TV service from two to six
       thematic channels, each broadcasting a unique schedule of movies,
       doubling the number of titles currently scheduled each month.
 
     Programming
     -------------------------------------------------------------------------
 
     The Programming division consists of the following: specialty television
 networks YTV, Treehouse TV and Corus' 80% interest in CMT (Country Music
 Television); Corus' 80% interest in DMX Residential, a digital audio service;
 Corus Premium Pay Services of Superchannel, MovieMax! and Viewer's Choice; and
 Corus' 50% interest in Balmur Corus Music ("BCM"), a country music
 entertainment business.
     Revenues for the second quarter increased by 88% to $42.2 million from
 $22.5 million last year. EBITDA was $14.0 million, up 98% from $7.0 million
 last year. EBITDA as a percentage of revenues was 33% for the quarter.
     Excluding Corus Premium Pay Services acquired effective July 2000, second
 quarter revenues and EBITDA were $24.6 million and $7.8 million, up 9% and 11%
 respectively. EBITDA as a percentage of revenues was 32%.
     On a year to date basis, revenues increased 77% to $91.4 million. EBITDA
 was $32.0 million, up from $18.2 million last year. EBITDA as a percentage of
 revenues was 35% for the six month period.
     Excluding Corus Premium Pay Services, year-to-date revenues and EBITDA
 were $58.3 million and $21.1 million, up 13% and 16% respectively. EBITDA
 margin was 36%.
     All programming services contributed to the strong results in the quarter
 and year to date. For the specialty television stations, continued growth in
 affiliate revenues, due to increased Direct-To-Home (DTH) subscribers,
 contributed to the increase in total revenues and EBITDA for the quarter and
 year to date.
 
     Radio
     -------------------------------------------------------------------------
 
     The Radio division is comprised of 49 radio stations situated primarily
 in high growth urban centres in British Columbia, Alberta, Manitoba, Ontario
 and Quebec. The total includes six stations from the acquisition of Metromedia
 Broadcasting which was completed on February 28, 2001. (Metromedia operating
 results are not included in the second quarter).
     Radio revenues, in the traditionally soft second quarter, increased by
 173% to $36.0 million from $13.2 million last year. EBITDA was $6.1 million,
 up from $2.9 million last year. EBITDA as a percentage of revenues was 17% for
 the quarter.
     On a year to date basis, Radio revenues increased 177 % to $81.9 million.
 EBITDA was $19.5 million, up from $8.6 million last year. EBITDA as a
 percentage of revenues was 24% for the six month period. The operating results
 reflect an increase from 14 radio stations a year ago to 43 at February 28,
 2001.
     On a proforma basis, Radio revenues and EBITDA in the second quarter were
 flat compared to last year. We experienced excellent revenue growth in the key
 markets of Toronto, Edmonton and Calgary. However, the gains were offset by
 the performance of Vancouver where we experienced intense competitive pressure
 against our rock format at CFOX. Without the erosion of revenues in Vancouver
 in the second quarter, revenues were up 3% on a proforma basis.
     The Radio division has completed the physical consolidation of facilities
 in Vancouver, Barrie and Hamilton but has yet to realize the cost savings from
 consolidation of facilities in Alberta and Toronto, which are expected to be
 completed by the end of the first quarter of fiscal 2002. Corus expects
 improvement in Radio's EBITDA in the second half of fiscal 2001.
 
     Diversified Media
     -------------------------------------------------------------------------
 
     Diversified Media includes the operations of Digital ADventure, a cable
 advertising service, DMX Commercial, a digital audio service and four
 conventional television stations.
     Revenues for the second quarter were $11.0 million, up 92% from $5.7
 million last year. EBITDA was $2.4 million, up from $1.1 million last year.
 EBITDA as a percentage of revenues was 22% for the quarter.
     On a year-to-date basis, revenues increased 112% to $24.3 million. EBITDA
 was $6.2 million, up from $2.2 million last year. EBITDA as a percentage of
 revenues was 25%.
     The 112% growth in revenues is 109% from the four conventional television
 stations and Sound Products acquired in fiscal 2000 and 3% from organic growth
 in Digital ADventure and DMX Commercial.
     For Digital ADventure, strong performances from the TV Listings, Real
 Estate and Infomercial channels contributed to year-to-date revenue and EBITDA
 growth of 4% and 13%.
     For DMX Commercial, an increase in customer base offset by lower audio
 equipment sales resulted in year-to-date revenue and EBITDA results that were
 consistent with the prior year.
 
     Content
     -------------------------------------------------------------------------
 
     Content includes the operations of Nelvana Limited, an international
 producer and distributor of children's programming and products. As of
 November 14, 2000, Corus effectively owned 100% of Nelvana. Content derives
 revenues from production and distribution, merchandising and publishing.
     Revenues and EBITDA for the quarter were $46.2 million and $6.8 million
 respectively. EBITDA as a percentage of revenues was 15% for the quarter.
     Year-to-date revenues and EBITDA were $55.3 and $9.8 million. EBITDA
 margin was 18%.
     Strong performances were achieved in production and distribution EBITDA
 resulting from higher revenue per episode delivered compared to a year ago.
 This helped to offset lower than expected results from the publishing business
 which were affected by the November and December softening of the retail
 market, particularly in the U.S.
 
 
 
                           CORUS ENTERTAINMENT INC.
                          CONSOLIDATED BALANCE SHEETS
 
                                                      February 28,  August 31,
                                                          2001         2000
     (thousands of Canadian dollars)                  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
     ASSETS
     Current
     Cash and cash equivalents                                 -      372,348
     Accounts receivable                                 101,171       72,076
     Prepaid expenses and other                           15,957       11,248
     Program rights                                       36,772       30,215
     Inventory                                            17,303            -
     Future tax asset                                      2,100            -
     -------------------------------------------------------------------------
     Total current assets                                173,303      485,887
 
     Long-term receivables                                80,138            -
     Investments and other assets                         80,358       94,345
     Program and film rights                              15,684        8,049
     Capital assets, net                                  90,137       67,401
     Deferred charges                                     25,463       15,054
     Film investments, broadcast licenses and
      goodwill                                         1,496,930      758,267
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current
     Bank overdraft                                       11,366            -
     Accounts payable and accrued liabilities            110,659       73,352
     Income taxes payable                                 24,600       12,767
     Future tax liability                                      -        6,904
     Current portion of long-term debt                     3,066        3,000
     -------------------------------------------------------------------------
     Total  current liabilities                          149,691       96,023
 
     Long-term debt                                      502,731      294,355
     Deferred credits                                     51,642       39,350
     Future tax liability                                190,334      171,463
     Minority interest                                     1,402        1,134
     -------------------------------------------------------------------------
     Total  liabilities                                  895,800      602,325
 
     SHAREHOLDERS' EQUITY
     Share capital                                       882,392      670,694
     Retained earnings                                   183,821      155,984
     -------------------------------------------------------------------------
     Total shareholders' equity                        1,066,213      826,678
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Prior period has been restated to conform with the current presentation.
 
 
 
                           CORUS ENTERTAINMENT INC.
                       CONSOLIDATED STATEMENTS OF INCOME
 
                               Three months ended         Six months ended
                               Feb 28       Feb 29       Feb 28       Feb 29
                                2001         2000         2001         2000
 
     (thousands of Canadian
     dollars) (unaudited)
     -------------------------------------------------------------------------
     Revenues                  134,736       41,369      252,213       92,777
     Operating, general and
      administrative expenses  108,159       31,259      188,921       65,835
     -------------------------------------------------------------------------
     Income before depreciation,
      amortization, interest,
      other and income taxes    26,577       10,110       63,292       26,942
     Depreciation                4,513        1,750        8,201        3,420
     Amortization               11,339        2,410       17,512        4,808
     Interest on long-term
      debt                      11,045        7,070       19,827       14,547
     Gain on sale of
      investments                 (855)    (105,286)        (855)    (116,574)
     Other (revenue) expense
      including dividends
      from investees            (1,337)          78       (6,580)         (76)
     -------------------------------------------------------------------------
     Income before income
      taxes                      1,872      104,088       25,187      120,817
     Income tax recovery
      (expense)                 11,780      (36,776)       1,428      (43,953)
     -------------------------------------------------------------------------
     Income before equity
      earnings from
      investees and minority
      interest                  13,652       67,312       26,615       76,864
     Equity earnings from
      investees                    522          587        1,490        1,146
     Minority interest            (159)         (71)        (268)        (156)
     -------------------------------------------------------------------------
     NET INCOME FOR THE
      PERIOD                    14,015       67,828       27,837       77,854
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
        Earnings per share -
         Class A voting and
         Class B non-voting
          Basic                  $0.33        $2.23        $0.69        $2.56
          Fully diluted          $0.33        $2.19        $0.69        $2.52
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
                           CORUS ENTERTAINMENT INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
                               Three months ended         Six months ended
     (thousands of Canadian    Feb 28       Feb 29       Feb 28       Feb 29
     dollars) (unaudited)       2001         2000         2001         2000
     -------------------------------------------------------------------------
     OPERATING ACTIVITIES
     Net income                 14,015       67,828       27,837       77,854
     Non-cash items:
       Depreciation              4,513        1,750        8,201        3,420
       Amortization             11,339        2,410       17,512        4,808
       Amortization of
        program and film
        rights                  35,651        5,209       54,862       11,078
       Future income taxes     (19,147)      30,155      (19,719)      33,987
       Equity earnings from
        investees                 (522)        (587)      (1,490)      (1,146)
       Gain on sale of
        investments               (855)    (105,286)        (855)    (116,574)
       Asset write-down          1,530            -        1,530            -
       Minority interest           159           71          268          156
       Other                      (449)        (165)        (709)        (380)
     -------------------------------------------------------------------------
     Cash flow derived from
      operations                46,234        1,385       87,437       13,203
     Net change in non-cash
      working capital balances
      related to operations        479       10,139        5,629       12,293
     -------------------------------------------------------------------------
     Cash provided by
      operating activities      46,713       11,524       93,066       25,496
     -------------------------------------------------------------------------
 
     INVESTING ACTIVITIES
     Additions to capital
      assets                    (8,474)      (2,101)     (14,446)      (4,907)
     Net proceeds from sale
      of investment                  -         (373)           -       15,998
     Proceeds from disposal      1,619            -        1,619            -
     Business acquisitions    (145,730)           -     (461,807)        (403)
     Additions to
      investments               (7,092)      (3,232)     (14,783)     (10,507)
     Payments of program
      rights and film
      investments              (48,567)      (6,004)     (69,430)     (14,781)
     Additions to deferred
      charges                   (2,017)        (986)      (2,349)      (8,584)
     Dividends received            400          300          400          300
     Other                       2,075         (231)           -          162
     -------------------------------------------------------------------------
     Cash (used in)
      investing activities    (207,786)     (12,627)    (560,796)     (22,722)
     -------------------------------------------------------------------------
 
     FINANCING ACTIVITIES
     Increase in long-term
      debt                     119,158          336      189,158          336
     Repayment of long-term
      debt                    (100,005)           -     (105,818)           -
     Issuance of shares            676            -          676            -
     -------------------------------------------------------------------------
     Cash provided by
      financing activities      19,829          336       84,016          336
     -------------------------------------------------------------------------
     Net increase (decrease)
      in cash and cash
      equivalents during the
      period                  (141,244)        (767)    (383,714)       3,110
     Cash and cash
      equivalents, beginning
      of the period            129,878        4,138      372,348          261
     -------------------------------------------------------------------------
     Cash and cash
      equivalents (bank
      overdraft), end of the
      period                   (11,366)       3,371      (11,366)       3,371
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Cash flow derived from
      operations per share
     Basic                       $1.09        $0.04        $2.16        $0.43
     Fully diluted               $1.06        $0.04        $2.10        $0.43
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
                                  SCHEDULE A
                           CORUS ENTERTAINMENT INC.
                             SEGMENTED INFORMATION
 
                               Three months ended         Six months ended
     (thousands of Canadian    Feb 28       Feb 29       Feb 28       Feb 29
     dollars) (unaudited)       2001         2000         2001         2000
     -------------------------------------------------------------------------
     Revenues
       Programming              42,239       22,457       91,431       51,757
       Radio                    35,981       13,177       81,892       29,576
       Diversified Media        11,014        5,735       24,352       11,444
       Content - Production,
                 Distribution &
                 Merchandising  35,300            -       40,852            -
               - Publishing     10,924            -       14,408
       Eliminations               (722)           -         (722)           -
     -------------------------------------------------------------------------
                               134,736       41,369      252,213       92,777
     -------------------------------------------------------------------------
 
     Income before deprecia-
      tion, amortization,
      interest, other and
      income taxes ("EBITDA")
       Programming              13,960        7,041       31,982       18,187
       Radio                     6,114        2,871       19,530        8,580
       Diversified Media         2,415        1,093        6,194        2,236
       Content - Production,
                 Distribution &
                 Merchandising   6,844            -        8,544            -
               - Publishing        (18)           -        1,223            -
       Corporate                (2,225)        (895)      (3,668)      (2,061)
       Eliminations               (513)           -         (513)           -
     -------------------------------------------------------------------------
                                26,577       10,110       63,292       26,942
     -------------------------------------------------------------------------
 
     EBITDA as a % of revenues
       Programming                  33%          31%          35%          35%
       Radio                        17%          22%          24%          29%
       Diversified Media            22%          19%          25%          20%
       Content - Production,
                 Distribution &
                 Merchandising      19%           -           21%           -
               - Publishing          -            -            8%           -
     -------------------------------------------------------------------------
                                    20%          24%          25%          29%
     -------------------------------------------------------------------------
 
 
                                                        Feb 28,       Aug 31,
                                                         2001          2000
     (thousands of Canadian dollars)                  (Unaudited)   (Audited)
     -------------------------------------------------------------------------
     Segment assets
       Programming                                       322,020      297,211
       Radio                                             461,659      418,597
       Diversified Media                                 143,947      156,079
       Content - Production, Distribution &
                 Merchandising                           257,320            -
               - Publishing                               41,321            -
       Corporate                                         736,259      557,116
       Eliminations                                         (513)           -
     -------------------------------------------------------------------------
                                                       1,962,013    1,429,003
     -------------------------------------------------------------------------
 
     Prior periods have been restated to conform with the current
     presentation.
 
 
 
     Corus Entertainment is one of Canada's leading entertainment companies
 with a strategic focus on children's programming and music. Its principal
 assets consist of 49 radio stations, specialty, pay and conventional
 television services, and Nelvana Limited, an international producer and
 distributor of children's programming and products. Corus is also prominent in
 the digital music market and various advertising service companies and has
 approval for 19 new digital television services. A publicly traded company,
 Corus is listed on the Toronto (CJR.B) and New York (CJR) Exchanges.
 
     Certain statements in this press release may constitute forward-looking
 statements. Such forward-looking statements involve risks, uncertainties and
 other factors which may cause the actual results, performance, or achievement
 of the company to be materially different from any future results performance
 or achievements expressed or implied by such forward-looking documents.
 
 
 SOURCE Corus Entertainment Inc.