Corus Entertainment : SECOND QUARTER 2024 REPORT TO SHAREHOLDERS

report to shareholders

SecondQuarter2024

For the Three and Six Months Ended February 29, 2024 (Unaudited)

Table of Contents

3 Financial Highlights

4 Business Highlights

5 Management's Discussion and Analysis

6 Overview of Consolidated Results

9 Business Segment Information

10 Television

11 Radio

11 Corporate

12 Quarterly Consolidated Financial Information

13 Financial Position

14 Liquidity and Capital Resources

15 Outstanding Share Data

16 Key Performance Indicators and Non-GAAP Financial Measures

18 Outlook

19 Impact of New Accounting Policies

19 Critical Accounting Estimates and Judgements

19 Controls and Procedures

20 Interim Condensed Consolidated Financial Statements and Notes

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FINANCIAL HIGHLIGHTS

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

Multi-Platform Video Business

• Global launches its Winter/Spring 2024 Programming. Global Television's core prime-timeaudiences increased(1) following the return of blockbuster franchises NCIS and FBI, hit dramas CSI: Vegas and 9-1-1,acclaimed comedies Abbott Elementary and Ghosts, season 46 of Survivor, fan favourite Big Brother Canada and the introduction of new drama Elsbeth.

• Global Television celebrates its 50-year anniversary. Launched on January 6, 1974, Global Television remains an iconic brand for Canadians who have welcomed the network, its news and entertainment programming into their homes for 50 years and counting.

International Content Business

• HGTV Canada and MEM announced the greenlight of Renovation Resort. HGTV Canada's Scott McGillivray and Brian Baeumler return as co-hostsand judges in Season 2 of Renovation Resort, distributed by Corus Studios. The series successfully debuted as the #1 Canadian original series on Specialty television in Spring 2023(2).

• Global greenlights Season 4 of Family Law. Global announced it has greenlit hit Canadian legal drama Family Law for a fourth season. The renewal precedes the show's Season 3 Canadian premiere later this year.

Ongoing Focus on Capital Management

• Corus advances its deleveraging goals. In the second quarter of fiscal 2024, Corus paid down $21.5 million of debt and $31.5 million year-to-date.

Advanced Focus on Sustainability

• Corus gives back to local communities. In the second quarter of fiscal 2024, Corus helped raise just over $9.0 million for over 280 community giving initiatives as well as provided 596 volunteer hours to 21 local organizations across Canada.

Creating a Great Place to Work

• Canada's Top 100 Employers for Young People 2024. Corus Entertainment was recognized as one of Canada's Top Employers for Young People for the 14th consecutive year. The recognition is a benchmark for employers that offer the nation's best workplaces and programs for young people just starting their careers.

• Canada's Best Diversity Employers 2024. Corus Entertainment was recognized by Canada's Top 100 Employers as one of Canada's Best Diversity Employers 2024 for the Company's ongoing efforts to prioritize Diversity, Equity and Inclusion.

1. Source: Numeris PPM Data, Total Canada, Conventional Spring'24 (Feb 12/24 - Mar 17/24) vs Spring'24 Prior Weeks (Jan 1/24 - Fe 11/24)
   - confirmed to 3/10/24, A25-54, AMA (000), core primetime: MO-Su8-11pm, Local time.
2. Source: Numeris PPM Data, SP'23 (Jan 2/23 - May 28/23) - confirmed data, Total Canada, 3+ airings, CDN SPEC COM ENG excluding sports, based on AMA(000), A25-54

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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 six months ended February 29, 2024 is prepared as at April 11, 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, 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; 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 meet covenants under the Company's senior credit

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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 second quarter of fiscal 2024 of $299.5 million decreased 13% from $343.9 million in the prior year's quarter. On a consolidated basis, advertising revenue decreased 11%, subscriber revenue was down 5%, while distribution, production and other revenue was down 54% compared to the prior year's quarter. Revenue declined 14% in Television and 4% in Radio.

For the six months ended February 29, 2024, consolidated revenue of $669.4 million decreased 14% from $775.1 million in the prior year. On a consolidated basis, advertising revenue decreased 14%, subscriber revenue was down 6% and distribution, production and other revenue was down 43% from the prior year. Revenue declined 14% in Television and 6% 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 second quarter of fiscal 2024 of $246.8 million decreased 13% from $284.7 million in the prior year's quarter. On a consolidated basis, direct cost of sales decreased 18%, employee costs decreased 3% and other general and administrative expenses decreased 14%. The decrease in direct cost of sales results from declines in amortization of program rights, film investments and other cost of sales. The decrease in employee costs was primarily due to reduced labour costs, offset by higher short-term compensation accruals and share-based compensation expense. Other general and administrative expenses were lower as a result of the elimination of CRTC Part II fees effective April 1, 2023, lower advertising and marketing costs, as well as reduced rental costs and satellite communications charges, offset by increased software and system license fees.

For the six months ended February 29, 2024, direct cost of sales, general and administrative expenses of $495.8 million decreased 15% from $584.2 million in the prior year. On a consolidated basis, direct cost of sales decreased 20%, while employee costs decreased 3% and other general and administrative costs decreased 20% from the prior year. The decrease in direct cost of sales was driven principally by the decline in amortization of program rights. The decrease in employee cost was primarily due to reduced labour costs, offset by increased short-term compensation accruals and share-based compensation expense. Other general and administrative expenses decreased as a result of the elimination of CRTC Part II fee, 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 second quarter of fiscal 2024 was $52.7 million, a decrease of 11% from $59.1 million in the prior year's quarter. The decrease in segment profit for the second quarter was principally a result of Television advertising and subscriber revenue declines, partially offset by a decrease in amortization of program rights due to lower revenue and lower deliveries of scripted Hollywood content as well as further cost control measures undertaken to reduce general and administrative expenses. Segment profit margin for the second quarter of fiscal 2024 of 18% was up from 17% in the prior year's quarter.

For the six months ended February 29, 2024, segment profit was $173.6 million, a decrease of 9% from $190.8 million in the prior year. The decrease in segment profit was principally a result of Television advertising and subscriber 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 26% for the six months ended February 29, 2024 was up 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 February 29, 2024 was $29.9 million, a decrease from $40.3 million in the prior year's quarter. The decrease was a result of reductions in the amortization of brands and trade marks of $9.6 million, capital assets of $0.7 million and amortization of other intangible assets of $0.2 million.

Depreciation and amortization expense for the six months ended February 29, 2024 was $60.2 million, a decrease from $80.4 million in the prior year. The decrease was a result of reductions in the amortization of brands and trade marks of $19.3 million, capital assets of $0.9 million and other intangible assets of $0.1 million.

INTEREST EXPENSE

Interest expense for the three months ended February 29, 2024 of $28.1 million decreased from $34.8 million in the prior year's quarter. The decrease in interest expense in the quarter results from lower imputed interest of $4.0 million on long-term liabilities associated with program rights, trade marks and right-of-use assets and lower interest on long-term debt of $2.8 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 six months ended February 29, 2024 of $57.2 million decreased from $69.1 million in the prior year. The decrease results from lower imputed interest of $7.9 million on long-term liabilities associated with program rights, trade marks and right-of-use assets and lower interest on long-term debt of $4.2 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 six months ended February 29, 2024 was 6.1% compared to 6.0% and 5.8%, respectively, in the comparable periods of the prior year. The increase in the effective rate for both periods results from higher interest rates on bank debt.

DEBT REFINANCING

On October 26, 2023, the Company amended and restated its Credit Facility (refer to note 4 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 six months ended February 29, 2024, the Company incurred $5.3 million and $16.1 million, respectively, of restructuring and other costs, compared to $2.1 million and $5.0 million in the comparable periods of the prior year. The current fiscal year costs relate primarily to restructuring costs associated with employee exits, while the prior fiscal year costs relate to restructuring costs as well as ongoing system integration costs.

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OTHER EXPENSE (INCOME), NET

Other expense for the three month period ended February 29, 2024 was $0.3 million, compared to $1.4 million in the prior year's quarter. The current quarter includes $0.9 million of interest income, foreign exchange gains of $0.2 million related to the translation of USD denominated liabilities, as well as an impairment recovery of $0.3 million on an equity investment, offset by other expenses of $1.6 million consisting of the retroactive portion of a reduction to Television retransmission royalties as well as redundant rent, net of rental income. The prior year's quarter included net foreign exchange losses of $2.8 million primarily related to the translation of USD denominated liabilities, fair value losses on the Notes prepayment options of $0.4 million, offset by $1.2 million of interest income and other income of $0.5 million consisting of rental income.

Other income for the six months ended February 29, 2024 was $0.3 million compared to other expense of $8.4 million in the prior year. In the current year-to-date period, other income included interest income of $2.2 million, a $1.0 million gain on a property disposal, as well as an asset impairment reversal of $0.3 million, offset by foreign exchange losses of $0.7 million primarily related to the translation of USD denominated liabilities and $2.6 million of other expenses related to the retroactive portion of retransmission royalties and redundant rent, net of rental income. In the prior year's comparable period, other expense included net foreign exchange losses of $7.7 million, fair value losses on the Notes prepayment options of $2.0 million, as well as the retroactive portion of retransmission royalty reductions and redundant rent, net of rental income, offset by $1.7 million of interest income.

INCOME TAX EXPENSE (RECOVERY)

The Company's effective income tax recovery rate for the three months ended February 29, 2024 was 28.1% compared to an effective income tax recovery rate for the three months ended February 28, 2023 of 23.1%. The difference between the statutory rate of 26.3% and the effective tax rate resulted from changes in valuation allowances and miscellaneous items.

The Company's effective income tax rate for the six months ended February 29, 2024 was 26.3%, compared to the effective tax rate for the six months ended February 28, 2023 of 29.5%. The year-to- date effective income tax rate was consistent with the Company's statutory income tax rate.

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

Net loss attributable to shareholders for the second quarter of fiscal 2024 was $9.8 million ($0.05 loss per share basic), compared to net loss attributable to shareholders of $15.5 million ($0.08 loss per share basic) in the prior year's quarter. Net loss attributable to shareholders for the second quarter of fiscal 2024 includes restructuring and other costs of $5.3 million ($0.02 per share). Adjusting for the impact of this item results in an adjusted net loss attributable to shareholders of $5.9 million ($0.03 loss per share basic) in the quarter. Net loss attributable to shareholders for the second quarter of fiscal 2023 included restructuring and other costs of $2.1 million ($0.01 per share). Adjusting for the impact of this item results in an adjusted net loss attributable to shareholders of $13.9 million ($0.07 loss per share basic) in the prior year's quarter.

Net income attributable to shareholders for the six months ended February 29, 2024 was $22.9 million ($0.12 per share basic), compared to $15.9 million ($0.08 per share basic) in the prior year. Net income attributable to shareholders for the six months ended February 29, 2024 includes a debt refinancing loss of $0.8 million ($nil per share) and restructuring and other costs of $16.1 million ($0.06 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $35.3 million ($0.18 per share basic). Net income attributable to shareholders for the six months ended February 28, 2023 includes restructuring and other costs of $5.0 million ($0.02 per share basic). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $19.6 million ($0.10 per share basic) for the same comparable period of the prior year.

The weighted average number of basic shares outstanding for the three and six months ended February 29, 2024 was 199,440,000 compared to 199,440,000 and 199,583,000 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.

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OTHER COMPREHENSIVE INCOME (LOSS), NET OF INCOME TAXES

Other comprehensive loss for the three months ended February 29, 2024 was $5.9 million, compared to other comprehensive income of $3.9 million in the prior year's quarter. For the three months ended February 29, 2024, other comprehensive loss includes an actuarial loss on the remeasurement of post-employment benefit plans of $1.1 million and an unrealized loss on the fair value of financial assets of $4.8 million, offset by an unrealized gain from foreign currency translation adjustments of $0.1 million. In the prior year's quarter, other comprehensive income includes an unrealized gain on the change in the fair value of cash flow hedges of $2.3 million, an actuarial gain on the remeasurement of post-employment benefit plans of $1.5 million and an unrealized gain from foreign currency translation adjustments of $0.4 million, offset by an unrealized loss on the change in the fair value of financial assets of $0.4 million.

Other comprehensive loss for the six months ended February 29, 2024 was $11.5 million, compared to other comprehensive income of $2.5 million in the prior year. For the six months ended February 29, 2024, other comprehensive loss includes an actuarial loss on the remeasurement of post-employment benefit plans of $2.4 million, an unrealized loss on the fair value of cash flow hedges of $2.8 million and an unrealized loss on the fair value of financial assets of $6.5 million, offset by an unrealized gain from foreign currency translation adjustments of $0.2 million. For the six months ended February 28, 2023, other comprehensive income includes an unrealized gain from foreign currency translation adjustments of $1.3 million, an unrealized gain on the fair value of cash flow hedges of $1.3 million and an actuarial gain on the remeasurement of post-employment benefit plans of $0.5 million, offset by an unrealized loss on the fair value of financial assets of $0.7 million.

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.

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TELEVISION

FINANCIAL HIGHLIGHTS

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

Revenue for the three months ended February 29, 2024 declined 14% from the prior year's quarter as a result of decreases of 12% in advertising revenue, 5% in subscriber revenue, and 58% in distribution, production and other revenue. Advertising revenue remained well below seasonal trends as demand and spending in the media industry remained challenged primarily from lack of new scripted shows as a result of Hollywood labour actions and lower audiences. The decrease in advertising revenue was driven by declines across almost all the major advertising categories, partially mitigated by increases in the government and travel categories. 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, reduced service work and prior year multi-year licensing deals of Corus Studio's properties, as well as the disposition of Toon Boom Animation Inc. ("Toon Boom") in August 2023.

Revenue for the six months ended February 29, 2024 declined 14% from the prior year's comparable period as a result of decreases of 15% in advertising revenue, 6% in subscriber revenue, and 47% in distribution, production and other revenue. On a year-to-date basis, the majority of advertising categories continued to decline as advertisers held, reduced or cut spending compared to the prior year, particularly on linear advertising campaigns as a result of fewer new scripted shows and lower audience levels. Subscriber revenue decreased from the prior year-to-date as a result of declines in the traditional linear business and relative consistency of revenues from streaming services from the prior year-to-date period. The decrease in distribution, production and other revenue was driven by the disposition of Toon Boom in August 2023, deliveries of fewer episodes at both Nelvana and Aircraft Pictures and multi-year licensing deals of Corus Studio's properties in the prior year. Expenses for the quarter were down 15% from the prior year as a result of a decrease of 18% in direct costs of sales, 7% in employee costs and 16% in other general and administrative expenses. The decrease in direct cost of sales was driven by a $23.6 million (or 17%) decrease in amortization of program rights and decreases in amortization of film investment of $3.0 million (or 49%) and other cost of sales of $2.4 million (or 28%). The decrease in amortization of program rights was due to a lower number of new shows being added in the current quarter as a result of production halts during the Hollywood labour actions. The decrease of $4.4 million in employee costs compared to the prior year's quarter was a direct result of headcount reductions, offset by higher short-term compensation accruals. The decrease of $5.9 million in other general and administrative expenses compared to the prior year's quarter was attributable to continued cost containment measures put in place around advertising and marketing, the elimination of CRTC Part II fees (as of April 1, 2023), lower rental, satellite signal transmission, and consulting costs, offset by higher software and system license fees as well as an increase in the provision for doubtful accounts.

Expenses for the six months ended February 29, 2024 were down 17% from the prior comparable period as a result of a decrease of 20% in direct cost of sales, 6% in employee costs and 22% in other general and administrative expenses. The decrease in direct cost of sales was driven by a $56.3 million (or 19%) reduction in amortization of program rights as well as decreases of $3.2 million (or 30%) in amortization of film investments and $4.1 million (or 22%) in other cost of sales. The decrease of $7.7 million in employee costs reflects significant headcount reductions over the past twelve months, offset by increases in short-term compensation accruals. The decrease of $17.2 million in other general and administrative expenses was a result of the elimination of

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