Corus Entertainment Inc.

Overview Key strengths Key risks Strengthening presence on streaming platforms, both subscription and advertising based, that continues to partially offset traditional TV subscriber loss Exposure to economic cyclicality as over 60% of revenue comes from advertising Dividend resets and non-renewal of normal-course issuer bid provides some flexibility during currently weak economic cycle Risk of secular decline across media industry remains elevated Risk of higher leverage as economic fears continue to pressure advertising revenues S&P Global Economics forecasts subdued GDP growth in 2023 in Canada. In general, a weak economy, with slowing consumer spending usually results in a pullback in advertising spending. However, the impact on the various advertising media will vary greatly, as S&P Global Ratings expects digital advertising to

...Advertising spending continues to soften. S&P Global Economics forecasts subdued GDP growth in 2023 in Canada. In general, a weak economy, with slowing consumer spending usually results in a pullback in advertising spending. However, the impact on the various advertising media will vary greatly, as S&P Global Ratings expects digital advertising to still grow in 2023, TV to modestly decline, and radio to decline steeply. Therefore, we expect Corus Entertainment Inc.'s TV advertising revenues will decline in the low- to-mid single-digit percentage area. Given advertising revenues' higher margin and proportion of sales, we expect to see pressure on...

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