73 FISCAL 2000 COMPARED TO FISCAL 1999 Radio Broadcasting Programming The Programming division consists of: specialty television networks YTV, Treehouse TV and Corus’ 80% interest in CMT (Country Music Television); pay-television channels Superchannel, MovieMax! and Viewer’s Choice (a pay-per-view service) as well as Corus’ 80% interest in DMX Residential (a digital audio service). The CRTC licenses and regulates radio stations in Canada. In 1998 the CRTC imposed a policy that requires AM and FM stations to air 35% Canadian content for all popular music selections. Corus is in compliance with this policy. Radio revenue grew from $51.6 million in 1999 to $86.2 million in 2000, an increase of 67%. In 1999 Corus owned 11 radio stations. The number increased to 43 stations by the end of the fiscal year with the addition of three stations in London, Ontario in September 1999, 17 stations in April 2000 in Ontario (11) and Quebec (6) through the Power Broadcasting acquisition and 12 more stations across Canada with the WIC acquisition in July 2000. The 67% growth in revenue is 62% from acquisitions and 5% from organic growth. Expenses increased from $34.1 million in 1999 to $59.5 million in 2000, an increase of 74.5%. The increase was driven by the addition of a number of stations. EBITDA as a percent of revenues was 31% in 2000 and 33.9% in 1999. Consolidated revenues increased from $162.4 million to $229.2 million, an increase of 41.1% reflecting the exceptional growth in Programming and the additional revenue from acquisitions in the Radio and Other groups. Operating, general and administrative expenses increased from $113.3 million to $163.7 million, an increase of 44.5%. Expenses were also impacted by our acquisition program. Income before interest, taxes, depreciation and amortization increased to $65.5 million from $49.1 million last year, an increase of 33.4%. Our EBITDA margins were 28.6% compared to 30.2% last year. OUR FIRST YEAR AS A NEW PUBLIC COMPANY WAS EXCITING AND CHALLENGING, WITH LOTS OF HARD WORK BY A SMALL BUT VERY TALENTED AND DEDICATED FINANCIAL TEAM. WE ARE LOOKING FORWARD TO AN EQUALLY EXCITING YEAR TWO. TOM PEDDIE, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER