Corus Entertainment : FIRST QUARTER 2019 REPORT TO SHAREHOLDERS

First Quarter 2019 Report to Shareholders

For the Three Months Ended November 30, 2018 (Unaudited)

Table of Contents

3

Financial Highlights

4

Highlights in the Quarter

5

Highlights Subsequent to the Quarter

6

Management's Discussion and Analysis

7

Overview of Consolidated Results

8

Television

9

Radio

9

Corporate

10

Quarterly Consolidated Financial Information

11

Financial Position

12

Liquidity and Capital Resources

13

Outstanding Share Data

13

Key Performance Indicators

15

Risks and Uncertainties

15

Impact of New Accounting Policies and Changes in Estimates

18

Controls and Procedures

19

Consolidated Financial Statements and Notes

FINANCIAL HIGHLIGHTS

(These highlights are derived from the unaudited consolidated financial statements)

Three months ended

(in thousands of Canadian dollars except per share amounts)

Revenues

Television	426,190	415,464
Radio	41,281	41,924
467,471	457,388
Segment profit (1)
Television	184,553	168,602
Radio	13,012	13,521
Corporate	(5,927)	(4,236)
191,638	177,887
Net income attributable to shareholders (2)	60,415	77,673
Adjusted net income attributable to shareholders (1)(2)	70,111	78,885
Basic earnings per share (2)	$0.28	$0.38
Adjusted basic earnings per share (1)(2)	$0.33	$0.38
Diluted earnings per share (2)	$0.28	$0.38
Free cash flow (1)	42,406	83,215

• (1) Segment profit, adjusted net income attributable to shareholders, adjusted basic earnings per share, and free cash flow do not have standardized meanings prescribed by IFRS. The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions, explanations and reconciliations see discussion under the Key Performance Indicators section of this report.

• (2) Net income attributable to shareholders as well as basic and diluted earnings per share for the quarter ended November 30, 2018 was impacted by a change in accounting estimate related to the useful life of the Company's television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the first quarter of fiscal 2019, this has resulted in an additional $34.9 million in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders by $25.7 million ($0.12 per share basic). Further discussion of this can be found in the Impact of New Accounting Policies and Changes in

  Estimates section of this report.

HIGHLIGHTS IN THE QUARTER

• • On September 9, 2018, the Company's brands and people were recognized at the 2018 Canadian Country Music Association Awards including Edmonton's CISN Country 103.9 receiving top honour for Radio Station of the Year - Large Market.

• • On September 12, 2018, the Company's Nelvana subsidiary and Sony Pictures Animation announced the renewal of the hit animated comedy Hotel Transylvania: The Series for a second season. Disney Channel in the U.S. and their global territories, and TELETOON Canada, are set to broadcast the new episodes once production is completed and the series is available for broadcast.

• • On September 13, 2018, the Company's Historia channel was recognized at the 33rd Gémeaux Awards Technical and Documentary Gala with Best Original Music: Documentary (Luc St-Pierre) for Espions parmi nous (Amalga).

• • On September 16, 2018, the Company's Séries+ channel was recognized with three awards at the 33rd Gala des Gémeaux for its original production Plan B (KOTV), including: Best Dramatic Series, Best Female Lead: Drama Series (Magalie Lépine-Blondeau) and Best Direction: Drama Series (Jean-François Asselin).

• • On September 19, 2018, the Company's Nelvana subsidiary announced three new greenlit productions including digital-first, live-action series Miss Persona, and two new animated series, P.U.R.S.T Agent Binky and The Remarkable Mr. King, based on the popular Corus-owned Kids Can Press titles. Nelvana, which holds global distribution and merchandising rights to all three properties, introduced the series to the international market at MIPCOM in October 2018.

• • On September 19, 2018, Bill S-228, an Act to amend the Food and Drugs Act (prohibiting food and beverage marketing directed at children), passed Third Reading in the House of Commons, and now awaits Royal Assent. Upon receipt of Royal Assent, the bill will become law but any new advertising restrictions will not come into force until February 2021, at the earliest. Health Canada is drafting the regulations that will accompany the law. The Company contributed to an industry response as part of a public consultation that was launched by Health Canada in connection with this matter. Health Canada held an information session on November 5, 2018 and will conduct further consultations in early 2019.

• • On October 1, 2018, the Company's Nelvana subsidiary announced a Canadian licensing and broadcasting partnership with renowned toy and entertainment company Mattel for its iconic Thomas & Friends property. Nelvana becomes the exclusive Canadian licensing agent for Thomas & Friends across multiple merchandise categories, excluding toys. Treehouse becomes the new hub for the long-running Thomas & Friends series, which will be available across the network's traditional and non-linear platforms.

• • On October 1, 2018, the Federal Court of Appeal sided with Bell Canada in a long-running dispute over the Wholesale Code - a controversial part of the Canadian Radio-television and Telecommunication Commission's

  ("CRTC") Let's Talk TV policy framework, which imposed new rules on the commercial relationships of broadcasters and distributors. In a split decision, the majority of the Court held that the CRTC overstepped its jurisdiction by choosing to enact the Code through a mandatory distribution ("9(1)(h)") order. Notably, the

  Court did not raise concerns regarding the substance of the Code itself and left open the possibility that the Code could have been enacted by other means.

• • On October 2, 2018, the Company's Corus Studios subsidiary announced the introduction of three new series to the international market at MIPCOM in October 2018, including Fire Masters, Big Food Bucket List and Salvage Kings (working title). The Company continues to grow its slate of distinct original series developed for its portfolio of Lifestyle channels, which features an array of genres including travel and escape, fashion, food, automotive, cultural and factual content.

• • On October 4, 2018, the Company's Corus Studios subsidiary announced multiple new international content sales for a number of its original lifestyle series to buyers in the U.S., India, Italy, South Africa and Canada. Included in the list of series sold were Backyard Builds, Home to Win, Masters of Flip, Worst to First and The Baker Sisters.

• • On October 24, 2018, the Company announced the retirement of Barb Williams, Executive Vice President and Chief Operating Officer, effective October 31, 2018. Widely recognized as a long-time leader in Canada's broadcast industry, Barb Williams was celebrated on November 8, 2018, with a Hall of Fame Award for lifetime achievement from the Ontario Association of Broadcasters (OAB).

• • On October 25, 2018, the Company's W Network and Crown Media Family Network's Hallmark Channel announced an innovative multi-year, multi-platform channel partnership that brings the United States' iconic, family-friendly entertainment to Canada for the first time. As the exclusive TV partner for Crown Media Networks in Canada, W Network was granted the Canadian licensing rights to all movies and series produced by Crown for Hallmark and Hallmark Movies and Mysteries.

• • On October 25, 2018, the Company was recognized as one of Greater Toronto's Top Employers for 2018 by MediaCorp Canada and The Globe and Mail for the ninth consecutive year. This designation recognizes Greater Toronto employers with exceptional human resources programs and forward-thinking workplace policies.

• • On November 21, 2018, the Canadian government released its Fall Economic Statement which announced three new measures to support journalism in Canada: (1) access to charitable tax incentives for eligible news organizations; (2) a refundable tax credit to support news organizations; and (3) a non-refundable tax credit for subscriptions to Canadian digital news media. In total, the government pledged an "estimated" $595 million over the next five years for these three measures.

• • On November 22, 2018, the Company was recognized as one of Canada's Most Admired Corporate Cultures by Waterstone Human Capital. This national program recognizes best-in-class Canadian organizations and CEOs for fostering corporate cultures that enhance performance and help sustain a competitive edge.

• • On November 22, 2018, the CRTC laid out its priorities for the next two fiscal years in its CRTC Forecast 2019-20. Under broadcasting, the CRTC intends to consider applications for a new multiethnic TV channel; launch a review of the Indigenous broadcasting policy framework; consider the applications for renewing the licenses for CBC/Radio Canada; and implement new initiatives set out in the May 2018 "Harnessing Change: The Future of Programming Distribution in Canada" report.

HIGHLIGHTS SUBSEQUENT TO THE QUARTER

• • On December 4, 2018, the Company's W Network announced that it achieved the top spot among Canadian specialty channels across key demographics, supported by "Hallmark Channel's Countdown to Christmas", and was the #1 most watched channel in Canada on weekends, surpassing all conventional and sports networks.(1)

• • On December 28, 2018, the Company paid a quarterly dividend of $0.05875 and $0.06 per share to holders of its Class A and Class B Shares, respectively.

(1) Numeris PPM Data, Total Canada, M-Su 2a-2a, Oct29-Nov25/18, confirmed to Nov 18 vs. Oct30-Nov26/17, AMA(000), A25-54, A18-49,

A18-34, W25-54, W18-49 and 2+ unless otherwise noted, CDN COM ENG Spec + Dig \ Weekend=Sa-Su 2a-2a four-weekend avg \ program ranker based on CDN COM ENG Spec + Dig, M-Su 2a-2a, excludes sports