Corus Entertainment : THIRD QUARTER 2024 REPORT TO SHAREHOLDERS

report to shareholders

Third Quarter 2024

For the Three and Nine Months Ended May 31, 2024 (Unaudited)

Table of Contents

3 Financial Highlights

4 Business Highlights

5 Management's Discussion and Analysis

6 Overview of Consolidated Results

10 Business Segment Information

10 Television

11 Radio

12 Corporate

12 Quarterly Consolidated Financial Information

14 Financial Position

15 Liquidity and Capital Resources

17 Outstanding Share Data

17 Key Performance Indicators and Non-GAAP Financial Measures

20 Risks and Uncertainties

21 Outlook

21 Impact of New Accounting Policies

21 Critical Accounting Estimates and Judgements

22 Controls and Procedures

23 Interim Condensed Consolidated Financial Statements and Notes

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FINANCIAL HIGHLIGHTS

(These highlights are derived from the unaudited interim condensed consolidated financial statements)		Nine months ended
(in thousands of Canadian dollars except per share amounts)	Three months ended
	2024	May 31,	2024	May 31,
	2023	2023
Revenue	308,198	371,159	928,690	1,094,236
Television
Radio	23,606	26,176	72,555	78,161
	331,804	397,335	1,001,245	1,172,397
Segment profit (loss)(1)	68,412	96,028	249,073	290,806
Television
Radio	2,633	4,112	8,035	10,484
Corporate	(3,510)	(3,235)	(15,979)	(13,558)
	67,535	96,905	241,129	287,732
Segment profit margin(1)	22%	26%	27%	27%
Television
Radio	11%	16%	11%	13%
Consolidated	20%	24%	24%	25%
Net loss attributable to shareholders	(769,897)	(495,073)	(746,966)	(479,136)
Adjusted net income (loss) attributable to	(19,873)	18,042	15,430	37,628
shareholders (1)
Earnings (loss) per share:	($3.86)	($2.48)	($3.74)	($2.40)
Basic
Diluted	($3.86)	($2.48)	($3.74)	($2.40)
Adjusted basic(1)	($0.10)	$0.09	$0.08	$0.19
Free cash flow(1)	18,440	25,979	75,010	75,186

1. In addition to disclosing results in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company's performance and to provide a better understanding of how management views the Company's performance. These non-IFRS or non-Generally Accepted Accounting Principles ("GAAP") measures can include: segment profit (loss), segment profit margin, free cash flow, adjusted net income (loss) attributable to shareholders, adjusted basic earnings (loss) per share, net debt to segment profit, proforma net debt to segment profit, and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators and Non-GAAP Financial Measures section below.

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BUSINESS HIGHLIGHTS

Corporate News

• Corus announces retirement of CEO, appointment of Co-CEOs.On June 17, 2024, Corus announced that Doug Murphy, former President and CEO, has made the decision to take an early retirement after over 30 years in broadcasting and media, and 21 years with the Company. Troy Reeb and John Gossling have been appointed as Co-ChiefExecutive Officers by the Board. John Gossling will also continue in his role as Chief Financial Officer.

Multi-Platform Video Business

• Global TV announces its 2024/2025 primetime lineup of new acquisitions and returns of major hit series. Global TV's roster will deliver 18.5 hours of simulcast programming in primetime this fall and introduces new dramas Matlock, Murder in a Small Town, and NCIS: Origins. The fall schedule also features the return of #1 show Survivor(1), #1 drama 9-1-1(1),and Elsbeth, along with popular franchises FBI and NCIS, and Top 10 ranked comedy Ghosts(1).

• Corus' Specialty networks and streaming platforms announce 2024/2025 series lineup. Corus' specialty drama networks and STACKTV will feature returning seasons of Bel Air, Ted, Based on a True Story, Outlander and The Way Home along with new Peacock Originals Untitled Steph Curry/Adam Pally Project (WT), Fight Night: The Million Dollar Heist and Lockerbie. Corus' unscripted and reality networks, and STACKTV will see the return of Celebrity IOU and The Secret of Skinwalker Ranch, and new series 100 Day Hotel Challenge (WT), Holy Marvels with Dennis Quaid, and more.

• Corus' complete portfolio of premium networks are now available through Eastlink. All 33 Corus specialty networks are available through Eastlink, beginning June 6, 2024. Eastlink TV customers can access Corus Channels through brand new Corus Theme Packs, which will offer a wide range of flexible package options.

• Corus announces changes to programming and trademark output arrangements. Some of Corus' programming and trademark output arrangements with Warner Bros. Discovery will not be renewed upon their expiry on December 31, 2024. This affects content on certain Corus-operatedspecialty networks. Corus does not currently expect changes to the programming of the channels until 2025.

International Content Business

• Corus unveils its 2024/2025 lineup of new and returning Canadian Original Series. Corus' specialty networks welcome back 16 returning Canadian Original series, plus 18 new titles for 2024/25. New titles include Building Baeumler, Beer Budget Reno (WT), Yukon Rescue, Pamela's Cooking with Love and more. Returning titles include Top Chef Canada, Rock Solid Builds, Gut Job Renovation Resort and more. New and returning titles from Nelvana include Barney's World, Millie Magnificent and award-winningshort film Jelly.

Ongoing Focus on Capital Management

• Corus advances its deleveraging goals. Corus paid down $4.6 million of debt In the third quarter of fiscal 2024, and $36.1 million year-to-date.

Advanced Focus on Sustainability

• Corus gives back to local communities. In the third quarter, Corus helped raise $9.2 million for over 290 community giving initiatives as well as provided 1,654 volunteer hours to 30 local organizations across Canada.

Regulatory Developments

• CRTC grants Corus' request for interim relief. On May 13, 2024, the Canadian Radio-television and Communications Commission (CRTC) announced its decision to grant Corus interim relief for Corus' English-language TV channels. The relief includes a reduction in Programs of National Interest (PNI) expenditure requirements from 8.5% to 5% and the removal of conditions to make up allowable Canadian Programming Expenditure (CPE) underspend requirements by the end of Corus' licensing term.

• CRTC announces requirement for online streaming services to contribute to Canada's broadcast system. On June 4, 2024, the CRTC announced a decision to require online streaming services generating over $25 million in Canada, which are unaffiliated with licensed broadcasters, to contribute 5% of their Canadian revenues to support the Canadian broadcasting system effective for the 2024-2025broadcast year. The CRTC estimates this will provide an estimated $200 million per year in new funding to be directed to areas of need in the Canadian broadcasting system, including local news on radio and television, and others.

1. Source: Numeris Personal People Meter Data, Total Canada, Spring 2024 season (Jan 8-Jun 2/24) - Confirmed data, 3+ airings, Adults
   25-54, Average Minute Audience(000), Canadian Conventional Commercial English national networks, and Connected TV com all others
   'Total', excludes playoffs.

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MANAGEMENT'S DISCUSSION AND ANALYSIS

Management's Discussion and Analysis of the financial position and results of operations for the three and nine months ended May 31, 2024 is prepared as at July 12, 2024. The following should be read in conjunction with Management's Discussion and Analysis, consolidated financial statements and the notes thereto included in the Company's Annual Report for the year ended August 31, 2023 and the interim condensed consolidated financial statements and notes of the current quarter. The financial highlights included in the discussion of the segmented results are derived from the unaudited interim condensed consolidated financial statements. All amounts are stated in Canadian dollars unless specified otherwise.

Corus Entertainment Inc. ("Corus" or the "Company") reports its interim financial results under International Accounting Standard ("IAS") 34 - Interim Financial Reporting, as issued by International Financial Reporting Standards ("IFRS") in Canadian dollars. Per share amounts are calculated using the weighted average number of shares outstanding for the applicable period.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This document 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 information"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2024 and 2025, subscriber revenue and anticipated subscription trends, distribution, production and other revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's ability to manage retention and reputation risks related to its on-air talent; expectations regarding financial performance, including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information.

Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation: factors and assumptions regarding the general market conditions and general outlook for the industry including: the impact of recessionary conditions and continuing supply chain constraints; the potential impact of new competition and industry mergers and acquisitions; changes to applicable tax, licensing and regulatory regimes; inflation and interest rates, stability of the advertising, subscription, production and distribution markets; changes to key suppliers or clients; operating and capital costs and tariffs, taxes and fees, the Company's ability to source, produce or sell desirable content and the Company's capital and operating results being consistent with its expectations. Actual results may differ materially from those expressed or implied in such information.

Important factors that could cause actual results to differ materially from these expectations include, among other things: the Company's ability to attract, retain and manage fluctuations in advertising revenue; the Company's ability to maintain relationships with key suppliers and clients and on anticipated financial terms and conditions; audience acceptance of the Company's television programs and cable networks including new or re-programmed channels; the Company's ability to manage retention and reputation risks related to its on-air talent; the Company's ability to recoup production costs; the availability of tax credits; the availability of expected news, production and related credits, programs and funding; the existence of co-production treaties; the Company's ability to compete in any of the industries in which it does business including with competitors which may not be regulated in the same way or to the same degree; the business and strategic opportunities (or lack thereof) that may be presented to and pursued by the Company; 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 including statements, decisions or positions by applicable regulators including, without limitation, the Canadian Radio-television and Telecommunications Commission ("CRTC"), Canadian Heritage and Innovation, Science and Economic Development Canada ("ISED"); changes to licensing status or conditions; unanticipated or un-mitigatable programming costs; the Company's ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage its growth; the Company's ability to successfully defend itself against litigation matters and complaints; failure to renegotiate,

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obtain relief from, or meet covenants under the Company's senior credit facility, senior unsecured notes or other instruments or facilities; epidemics, pandemics or other public health and safety crises in Canada and globally; physical and operational changes to the Company's key facilities and infrastructure; cybersecurity threats or incidents to the Company or its key suppliers and vendors; and changes in accounting standards.

Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Company's Management's Discussion and Analysis for the year ended August 31, 2023 (the "2023 MD&A") and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended August 31, 2023 (the "AIF"). Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on the Company's forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document and may be updated or amended from time to time. Except as otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise. For a discussion on the Company's results of operations for fiscal 2023, we refer you to the Company's Annual Report for the year ended August 31, 2023, filed on SEDAR+ on December 8, 2023. Additional information relating to the Company, including the AIF, is available on SEDAR+ at www.sedarplus.ca.

OVERVIEW OF CONSOLIDATED RESULTS

REVENUE

Revenue for the third quarter of fiscal 2024 of $331.8 million decreased 16% from $397.3 million in the prior year's quarter. On a consolidated basis, advertising revenue decreased 14%, subscriber revenue was down 6%, while distribution, production and other revenue declined 63% compared to the prior year's quarter. Revenue declined 17% in Television and 10% in Radio.

For the nine months ended May 31, 2024, consolidated revenue of $1,001.2 million decreased 15% from $1,172.4 million in the prior year. On a consolidated basis, advertising revenue decreased 14%, subscriber revenue was down 6% and distribution, production and other revenue declined 52% from the prior year. Revenue decreased 15% in Television and 7% in Radio. Further analysis of revenue is provided in the discussion of segmented results.

DIRECT COST OF SALES, GENERAL AND ADMINISTRATIVE EXPENSES

Direct cost of sales and general and administrative expenses for the third quarter of fiscal 2024 of $264.3 million decreased 12% from $300.4 million in the prior year's quarter. On a consolidated basis, direct cost of sales decreased 15%, employee costs decreased 10% and other general and administrative expenses decreased 3%. The decrease in direct cost of sales was driven principally by the decline in amortization of program rights and film investments. The decrease in employee costs was primarily due to reduced labour costs, short-term compensation accruals, commissions and employee recruitment costs, offset by higher share-based compensation expense. Other general and administrative expenses were lower largely as a result of the elimination of CRTC Part II fees effective April 1, 2023, reduced tariff royalties and trade mark fees that are positively correlated with revenue, reduced rental costs, and lower consulting costs, offset by increased advertising and marketing costs as well as software and system license fees.

For the nine months ended May 31, 2024, direct cost of sales, general and administrative expenses of $760.1 million decreased 14% from $884.7 million in the prior year. On a consolidated basis, direct cost of sales decreased 18%, employee costs decreased 6% and other general and administrative costs decreased 15%. The decrease in direct cost of sales was driven principally by the decline in amortization of program rights and film investments. The decrease in employee costs was primarily due to reduced labour costs and commission expense, offset by increased short-term compensation accruals and share-based compensation expense. Other general and administrative expenses decreased largely as a result of the elimination of CRTC Part II fees, reduced tariff royalties and trade mark fees that are positively correlated with revenue, lower rental costs, satellite communication charges, and consulting costs, offset by increased software and system license fees. Further analysis of expenses is provided in the discussion of segmented results.

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SEGMENT PROFIT

Segment profit for the third quarter of fiscal 2024 was $67.5 million, a decrease of 30% from $96.9 million in the prior year's quarter. The decrease in segment profit for the third quarter was principally a result of Television advertising, subscriber as well as distribution, production and other revenue declines, partially offset by a decrease in amortization of program rights as well as further cost control measures undertaken to reduce general and administrative expenses. Segment profit margin for the third quarter of fiscal 2024 of 20% was down from 24% in the prior year's quarter.

For the nine months ended May 31, 2024, segment profit was $241.1 million, a decrease of 16% from $287.7 million in the prior year. The decrease in segment profit was principally a result of Television advertising, subscriber as well as distribution, production and other revenue declines, partially offset by a decrease in amortization of program rights and general and administrative expenses in the current year-to-date. Segment profit margin of 24% for the nine months ended May 31, 2024 was down from 25% in the prior year. Further analysis is provided in the discussion of segmented results.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense for the three months ended May 31, 2024 was $27.4 million, a decrease from $40.2 million in the prior year's quarter. The decrease was a result of reductions in the amortization of brands and trade marks of $12.1 million and capital assets of $0.6 million.

Depreciation and amortization expense for the nine months ended May 31, 2024 was $87.6 million, a decrease from $120.6 million in the prior year. The decrease was a result of reductions in the amortization of brands and trade marks of $31.4 million, capital assets of $1.5 million and other intangible assets of $0.2 million.

INTEREST EXPENSE

Interest expense for the three months ended May 31, 2024 of $26.0 million decreased from $33.3 million in the prior year's quarter. The decrease in interest expense in the quarter results from lower imputed interest of $3.8 million on long-term liabilities associated with program rights, trade marks and right-of-use assets and lower interest on long-term debt of $3.3 million. Interest on long-term debt was lower as a result of repayments of bank debt, partially offset by higher interest rates on floating interest rate bank debt.

Interest expense for the nine months ended May 31, 2024 of $83.2 million decreased from $102.4 million in the prior year. The decrease results from lower imputed interest of $11.8 million on long-term liabilities associated with program rights, trade marks and right-of-use assets and lower interest on long-term debt of $7.5 million in the current year-to-date. Interest on long-term debt was lower due to repayments of unhedged portion of bank debt, partially offset by higher interest rates on floating interest rate bank debt.

The effective interest rate on bank debt and the Senior Unsecured Notes due 2030 (the "2030 Notes") together with the $500.0 million 5.0% Senior Unsecured Notes due 2028 (the "2028 Notes", collectively referred to hereafter as the "Notes") for both the three and nine months ended May 31, 2024 was 6.0% compared to 6.0% and 5.9%, respectively, in the comparable periods of the prior year. The increase in the effective rate for the nine months results from higher interest rates on bank debt.

GOODWILL, BROADCAST LICENCES AND OTHER ASSET IMPAIRMENT

Goodwill and broadcast licences are tested for impairment annually as at August 31 or more frequently if events or changes in circumstances indicate that they may be impaired. The macroeconomic environment became increasingly uncertain during the fourth quarter of fiscal 2022, and as a result advertising demand and spending across the North American television media industry contracted meaningfully. These conditions persisted throughout fiscal 2023 and 2024, and in particular, more unfavourably than anticipated in the third quarter of fiscal 2024. In addition, the labour action of the Screen Actors Guild-American Federation of Television and Radio Artists ("SAG-AFTRA") between June 2023 and November 2023 impacted the majority of scripted productions world-wide that employ SAG-AFTRA talent, which impacted the delivery of programming available for airing on the Company's services. This resulted in a further contraction in advertising demand, particularly in the Television cash generating unit ("CGU"). Further, the Company was unable to renew certain programming and trademark output arrangements with Warner Bros. Discovery which expire on December 31 2024. The Company's share price has continued to decline meaningfully from August 31, 2023, which resulted in the Company's carrying value being greater than its market enterprise value at May 31, 2023, August 31, 2023 and May 31, 2024. Accordingly, impairment testing was required for both the Television CGU and Radio group of CGUs at all of the aforementioned period ends.

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In the third quarter of fiscal 2024, the Company completed impairment testing of broadcast licences, goodwill and definite life intangible assets within the Television CGU and Radio group of CGUs and determined that impairment charges were required. As a result of these tests, the Company recorded non-cash impairment charges in the Television CGU totalling $915.6 million. This included charges against broadcast licences of $526.7 million, brands and trademarks of $315.3 million and program rights of $73.6 million. The Company recorded non-cash impairment charges in the Radio group of CGUs totalling $44.4 million. This included charges against goodwill of $21.1 million and broadcast licences of $23.3 million (refer to note 6 of the interim condensed consolidated financial statements).

For the year ended August 31, 2023, the Company recorded total non-cash impairment charges in the Television CGU against goodwill, broadcast licences, as well as brands and trade marks totalling $690.0 million. No impairment was identified in the Radio group of CGUs.

DEBT REFINANCING

On October 26, 2023, the Company amended and restated its Credit Facility (refer to note 7 of the interim condensed consolidated financial statements for further details), which resulted in a non-cash loss on debt modification of $0.8 million.

RESTRUCTURING AND OTHER COSTS

For the three and nine months ended May 31, 2024, the Company incurred $10.9 million and $27.0 million, respectively, of restructuring and other costs, compared to $10.6 million and $15.5 million in the comparable periods of the prior year. The current and prior fiscal year costs relate primarily to restructuring costs associated with employee exits as well as ongoing system integration costs.

OTHER EXPENSE (INCOME), NET

Other expense for the three month period ended May 31, 2024 was $0.5 million, compared to other income of $2.0 million in the prior year's quarter. The current quarter includes other expenses of $1.3 million consisting of redundant rent, offset by $0.9 million of interest income. The prior year's quarter included net foreign exchange gains of $1.6 million primarily related to the translation of USD denominated liabilities, $0.8 million of interest income and other income of $0.1 million consisting of rental income, offset by fair value losses on the Notes prepayment options of $0.3 million and losses on asset disposals of $0.1 million.

Other expense for the nine months ended May 31, 2024 was $0.1 million compared to $6.4 million in the prior year. In the current year-to-date period, other expense included $3.8 million of other expenses related to the retroactive portion of retransmission royalties and redundant rent, net of rental income, foreign exchange losses of $0.7 million primarily related to the translation of USD denominated liabilities, offset by interest income of $3.1 million, a $1.0 million gain on a property disposal as well as an asset impairment reversal of $0.3 million. In the prior year's comparable period, other expense included net foreign exchange losses of $6.1 million, fair value losses on the Notes prepayment options of $2.3 million, as well as the retroactive portion of retransmission royalty reductions and redundant rent, net of rental income, offset by $2.4 million of interest income.

INCOME TAX EXPENSE (RECOVERY)

The Company's effective income tax recovery rate for the three months ended May 31, 2024 was 19.2% compared to an effective income tax recovery rate for the three months ended May 31, 2023 of 14.6%. The difference between the statutory rate of 26.5% and the effective tax rate resulted from changes in valuation allowances and miscellaneous items.

The Company's effective income tax rate for the nine months ended May 31, 2024 was 18.9%, compared to the effective tax rate for the nine months ended May 31, 2023 of 13.8%. The difference between the statutory rate of 26.5% and the effective tax rate resulted from changes in valuation allowances and miscellaneous items.

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NET INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS AND EARNINGS (LOSS) PER SHARE

Net loss attributable to shareholders for the third quarter of fiscal 2024 was $769.9 million ($3.86 loss per share basic), compared to net loss attributable to shareholders of $495.1 million ($2.48 loss per share basic) in the prior year's quarter. Net loss attributable to shareholders for the third quarter of fiscal 2024 includes goodwill, broadcast licence and other asset impairment charges of $960.0 million ($3.72 per share) and restructuring and other costs of $10.9 million ($0.04 per share). Adjusting for the impact of these items results in an adjusted net loss attributable to shareholders of $19.9 million ($0.10 loss per share basic) in the quarter. Net loss attributable to shareholders for the third quarter of fiscal 2023 included goodwill, broadcast licence and other asset impairment charges of $590.0 million ($2.53 per share) and restructuring and other costs of $10.6 million ($0.04 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $18.0 million ($0.09 per share basic) in the prior year's quarter.

Net loss attributable to shareholders for the nine months ended May 31, 2024 was $747.0 million ($3.74 loss per share basic), compared to net loss attributable to shareholders of $479.1 million ($2.40 loss per share basic) in the prior year. Net loss attributable to shareholders for the nine months ended May 31, 2024 includes goodwill, broadcast licence and other asset impairment charges of $960.0 million ($3.72 per share), a debt refinancing loss of $0.8 million ($nil per share) and restructuring and other costs of $27.0 million ($0.10 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $15.4 million ($0.08 per share basic). Net loss attributable to shareholders for the nine months ended May 31, 2023 includes goodwill, broadcast licence and other asset impairment charges of $590.0 million ($2.53 per share) and restructuring and other costs of $15.5 million ($0.06 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $37.6 million ($0.19 per share basic) for the same comparable period of the prior year.

The weighted average number of basic shares outstanding for the three and nine months ended May 31, 2024 was 199,440,000 compared to 199,440,000 and 199,541,000 for the comparable periods in the prior year. The average number of shares outstanding in fiscal 2024 decreased from the prior year as a result of the purchase and cancellation of Class B Non-Voting Participating Shares under the Company's normal course issuer bid ("NCIB"), which took place between January 2022 and October 2022.

OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES

Other comprehensive loss for the three months ended May 31, 2024 was $1.0 million, compared to $0.8 million in the prior year's quarter. For the three months ended May 31, 2024, other comprehensive loss includes an actuarial loss on the remeasurement of post-employment benefit plans of $1.4 million, offset by an unrealized gain on the change in the fair value of financial assets of $0.3 million and an unrealized gain from foreign currency translation adjustments of $0.1 million. In the prior year's quarter, other comprehensive loss includes an actuarial loss on the remeasurement of post-employment benefit plans of $0.6 million, an unrealized loss on the change in the fair value of financial assets of $0.6 million and an unrealized loss from foreign currency translation adjustments of $0.1 million, offset by an unrealized gain on the change in the fair value of cash flow hedges of $0.5 million.

Other comprehensive loss for the nine months ended May 31, 2024 was $12.5 million, compared to other comprehensive income of $1.6 million in the prior year. For the nine months ended May 31, 2024, other comprehensive loss includes an unrealized change in the fair value of financial assets of $6.2 million, an actuarial loss on the remeasurement of post-employment benefit plans of $3.8 million and an unrealized loss on the fair value of cash flow hedges of $2.8 million, offset by an unrealized gain from foreign currency translation adjustments of $0.3 million. For the nine months ended May 31, 2023, other comprehensive income includes an unrealized gain on the fair value of cash flow hedges of $1.8 million and an unrealized gain from foreign currency translation adjustments of $1.2 million, offset by an unrealized loss on the fair value of financial assets of $1.3 million.

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BUSINESS SEGMENT INFORMATION

The Company's business activities are conducted through two segments: Television and Radio.

TELEVISION

The Television segment is comprised of 33 specialty television networks, 15 conventional television stations, digital and streaming services, a social media digital agency, a social media creator network, technology and media services, and the Corus content business, which includes the production and distribution of films and television programs, merchandise licensing, book publishing, and animation software (disposed of on August 23, 2023). Revenue is generated from advertising, subscribers and the licensing of proprietary films and television programs as well as the provision of production services, merchandise licensing, book publishing, animation software (disposed of on August 23, 2023), and the provision of technology and media services.

RADIO

The Radio segment comprises 39 radio stations, situated primarily in urban centres in English Canada, with a concentration in the densely populated area of Southern Ontario. Revenue is derived from advertising aired over these stations.

CORPORATE

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

Management evaluates each segment's performance based on revenue less direct cost of sales, general and administrative expenses. Segment profit (loss) excludes depreciation and amortization, interest expense, debt refinancing costs, restructuring and other costs, impairments, gains or losses on dispositions, and certain other income and expenses.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the most recent annual audited consolidated financial statements, except as described in note 3 to the interim condensed consolidated financial statements.

TELEVISION

FINANCIAL HIGHLIGHTS

	Three months ended	Nine months ended
	2024	May 31,	2024	May 31,
(thousands of Canadian dollars)	2023	2023
Revenue	178,182	209,008	536,457	630,645
Advertising
Subscriber	116,914	124,225	352,449	375,791
Distribution, production and other	13,102	37,926	39,784	87,800
Total revenue	308,198	371,159	928,690	1,094,236
Expenses	239,786	275,131	679,617	803,430
Segment profit (1)	68,412	96,028	249,073	290,806
Segment profit margin(1)	22%	26%	27%	27%

1. As defined in the "Key Performance Indicators and Non-GAAP Financial Measures" section of this report.

Revenue for the three months ended May 31, 2024 declined 17% from the prior year's quarter as a result of decreases of 15% in advertising revenue, 6% in subscriber revenue, and 65% in distribution, production and other revenue. Advertising revenue remained well below the prior year as demand and spending in the linear media industry has been reduced and has been further impacted by an oversupply of digital inventory in the market. The decrease in advertising revenue was consistent with the Q3 outlook of 10-15% and was driven by declines across almost all the major advertising categories, partially mitigated by growth in alcoholic beverages and packaged goods. Subscriber revenue decreased from the prior year's quarter principally as a result of declines in the traditional linear business exceeding moderate growth in the quarter of subscriptions to streaming services. The decrease in distribution, production and other revenue was attributable to fewer episode deliveries and reduced service work as well as the disposition of Toon Boom Animation Inc. ("Toon Boom") in August 2023.

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