Corus Entertainment (CJR.B) investor relations material

Executive summary

• Consolidated revenue for Q3 2026 was $249.4 million, down 16% year-over-year, driven by lower TV and radio advertising and subscription revenue.

• Segment profit for Q3 was $29.1 million, a 53% decrease year-over-year, with a margin of 12% versus 21% last year.

• Net loss attributable to shareholders for Q3 was $36.5 million ($0.18 per share); adjusted net loss was $30.1 million ($0.15 per share).

• The company is focused on cost containment, capital management, and digital expansion, including new streaming platforms and content offerings.

• The regulatory process for the recapitalization transaction is ongoing, with CRTC and court approvals pending.

Financial highlights

• TV advertising revenue declined 20% to $120.3 million, with subscriber revenue down 13% to $96.5 million.

• Radio segment revenue dropped 15% to $20 million, with profit down 20% to $4 million and a margin of 21%.

• Free cash flow was $6.2 million for the quarter, higher than the prior year due to improved working capital and reduced investment in program rights.

• Net debt to segment profit ratio increased to 8.20x from 6.01x last year.

• Cash and cash equivalents stood at $56.8 million at quarter-end, with $15 million available under the revolving credit facility.

Outlook and guidance

• Focus remains on cost containment, content investment, digital platform expansion, and strengthening the business foundation.

• The company is pursuing a recapitalization transaction to reduce debt by $500 million and annual cash interest by up to $40 million, pending regulatory approvals.

• Awaiting regulatory clarity and funding details from the federal government, which announced a $600 million annual investment in the sector.

• Emphasis on regulatory fairness and a level playing field for Canadian broadcasters.

• Management highlights ongoing risks from declining linear TV advertising, macroeconomic uncertainty, and regulatory factors.