Corus Releases Q4, Full-Year Results

TORONTO, October 26: Corus
Entertainment posted revenue gains for the fourth quarter and full-year, and
profit for the quarter was up to C$46.6 from C$9.7 million, while for
the year profit halved to C$35.5 million from C$71.1 million.

"It was a strong year for Corus and the fourth quarter
was no exception,” said John Cassaday, the president and CEO of Corus
Entertainment. “We had another excellent quarter for our television division,
driven by strong ratings and subscriber growth for our brands. Our content
business continued to post positive results and radio remained strong outside
Quebec, where we are integrating newly acquired stations."

In the quarter, revenues were up 6 percent to C$185.0
million, and consolidated segment profit was C$44.5 million, up 5 percent. Net
income of C$46.6 million was positively impacted by approximately C$37 million
in income tax rate changes and other income tax items.

Corus Television contributed quarterly revenues of $94.7
million, up 13 percent, led by continued specialty advertising growth of 20
percent and subscriber growth of 12 percent. Quarterly segment profit increased
to C$34.1 million, up 11 percent. Corus Content revenues were C$26.8 million,
down 4 percent from C$28 million last year. Segment profit was C$2.6 million,
compared to C$1.8 million last year.

For the year, revenues were up 6 percent to C$726.3 million,
and consolidated segment profit was C$214.1 million, up 10 percent. The profit
fall to C$35.5 million was attributed to a C$132 million pre-tax debt
refinancing charge related to the purchase of the Senior Subordinated Notes and
the termination of cross-currency agreements associated with those notes in the
second quarter.

Corus Television, led by specialty advertising growth of 14
percent and subscriber growth of 10 percent, contributed full year revenues of
C$393.3 million, up 11 percent. Full year segment profit increased 17 percent
to C$164.2 million. Corus Content revenues were C$72.1 million, down 12 percent
as fewer episodes were delivered and Beyblade merchandising revenues declined. Segment profit was C$5.6 million,
compared to C$3.6 million last year. Revenues were down in fiscal 2006 towards
the end of fiscal 2005. The division continues to generate positive cash flow.