Corus Entertainment (CJR.B) investor relations material

Executive summary

• Consolidated revenue declined 15% year-over-year in Q2 2026 to $230.2 million, with segment profit rising 72% to $30.2 million due to cost controls and absence of prior year one-time expenses.

• Net loss attributable to shareholders for Q2 was $6.1 million ($0.03/share), a significant improvement from $55.9 million loss in the prior year.

• Free cash flow was $1.3 million in Q2, but negative $52.3 million year-to-date, impacted by higher working capital usage and increased cash taxes.

• Recapitalization Transaction received court and lender approval, with regulatory and TSX approvals pending.

• Leadership in specialty networks and strong performance in original Canadian content and network rankings continued.

Financial highlights

• Q2 consolidated revenue was $230.2 million, down 15% year-over-year, with TV revenue down 16% and radio down 4%.

• Q2 segment profit was $30.2 million, up 72% year-over-year, with margin improving to 13% from 6%.

• Direct cost of sales and G&A expenses fell 21–24% in Q2, reflecting lower program rights amortization and headcount reductions.

• Free cash flow for Q2 was $1.3 million, down from $46.0 million in the prior year.

• Net debt to segment profit ratio increased to 6.70x from 6.01x at prior year-end.

Outlook and guidance

• Management expects continued pressure on advertising and subscriber revenue due to industry shifts and macroeconomic factors.

• Recapitalization Transaction, if completed, will reduce total debt by $500 million and annual cash interest by up to $40 million.

• Strategic focus remains on regulatory advocacy, digital growth, disciplined cost management, and new content to sustain audience gains.

• No estimated closing date for recapitalization; timing depends on regulatory process.