Astral records a 14th consecutive year of growth

• 6% increase in revenues and 5% increase in EBITDA¹
• 13% increase in net earnings² and 12% increase in basic EPS²

MONTREAL, Oct. 27 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A/ACM.B) today reported solid financial results for the year ended August 31, 2010 and delivered continued growth in revenues, EBITDA¹, net earnings, EPS, and cash flow from operations³ for Fiscal 2010.

"I am particularly pleased with the results delivered by each of our business units in Fiscal 2010 and by their strong performance to finish the year," said Ian Greenberg, President and Chief Executive Officer. "The fourth quarter showed encouraging signs of recovery for Canadian advertising markets, positively affecting all our business segments and building momentum as we enter the new fiscal year."

In Fiscal 2010, consolidated revenues totalled $961.0 million, an increase of 6% over the $905.7 million recorded last year. Excluding the favourable Part II licence fees accrual reversal of $11.6 million⁴ and the $9.7 million⁵ copyright tariff charge recorded in Fiscal 2010, EBITDA¹ for the 12-month period increased 5% to $306.8 million from $293.1 million for Fiscal 2009. Consolidated net earnings² for Fiscal 2010 increased by 13% over last year, to $175.4 million² ($3.11 per share²) from $155.2 million² ($2.77 per share²). These net earnings and earnings per share exclude the non-cash impact of a future income tax recovery and of an impairment charge, net of future income tax recovery, recorded in Fiscal 2010 and 2009 respectively.

In the fourth quarter, consolidated revenues reached $238.4 million, a 9% increase over the $219.4 million reported last year for the same period. In the fourth quarter, the Company recorded an expense of $9.7 million⁵ in Radio as a result of Copyright Board tariff increases retroactive to January 2008. Excluding this retroactive charge, EBITDA¹ declined 3% in the fourth quarter to $74.0 million from $76.7 million for the same period last year, while consolidated net earnings for the fourth quarter increased 2% over the same quarter last year, to $45.1 million² ($0.80 per share²) from $44.3 million² ($0.79 per share²).

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television

• Revenue growth of 7% for the year (8% growth for the fourth quarter);
• Advertising revenue growth of 11% for the year (25% growth for the fourth quarter);
• Subscriber-related revenue growth of 6% for the year (5% growth for the fourth quarter);
• EBITDA¹ growth of 11% for the year⁶ (7% growth for the fourth quarter);
• Number of pay-TV subscribers (The Movie Network and Super Écran) grew 5% over the same period last year to 1.848 million;
• Launch of the new Playhouse Disney télé service in French on July 5;
• After year-end, announcement of a new agreement with Rogers to distribute the most popular programming from Astral's TMN, HBO Canada, Mpix, Family, and Playhouse Disney on the Rogers On Demand Online platform.

Radio

• Revenue growth of 3% for the year (7% growth for the fourth quarter);
• In the fourth quarter, the Company recorded an expense of $9.7 million⁴ in Radio as a result of Copyright Board tariff increases retroactive to January 2008.
• EBITDA¹ declined by 3% for the year^{6, 7} (7% decrease for the fourth quarter⁷);
• In June, rebranding of Vibe 98.5 in Calgary to Astral's fifth Virgin Radio station in Canada.

Out-of-Home

• Revenue growth of 10% for the year (19% growth for the fourth quarter);
• EBITDA¹ decline of 1% for the year (24% decrease for the fourth quarter).

Corporate

• In June, the Company moved its executive offices and certain divisional offices to the new Maison Astral building located at 1800 avenue McGill College in the heart of downtown Montréal.

The audited consolidated financial statements with related notes and Management's Discussion and Analysis are available on the Company's website: www.astral.com. There will be a conference call with analysts and media at 2:00 p.m. on Wednesday, October 27, 2010. To access the conference call dial 1-800-731-5319. The conference call will also be broadcast live and archived for a three-month period on the Astral website at www.astral.com.

Astral is one of Canada's largest media companies. It operates several of the country's most popular pay and specialty television, radio, out-of-home advertising and digital media properties. Astral plays a central role in community life across the country by offering diverse, rich and vibrant programming that meets the tastes and needs of consumers and advertisers. To learn more about Astral, visit www.astral.com.

This press release contains certain forward-looking statements concerning the future performance of the Company. These forward-looking statements are based on current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including technological change, economic conditions, regulatory change, competitive factors and changes in accounting rules or standards, many of which are beyond the Company's control. We disclaim any intention or obligation to update or revise any forward-looking statements.

1. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. See Appendix 1.
2. See Appendix 1 for the reconciliation of the net earnings and the basic EPS presented in the Company's consolidated financial statements and those presented in this press release.
3. See Appendix 1.
4. See ''Part II Licence Fees Accrual Reversal'' section in the Management's Discussion and Analysis.
5. See ''Copyright Board Tariff Increases'' section in the Management's Discussion and Analysis.
6. Excluding the $11.6 million of Part II licence fees accrual reversal recorded in the first quarter of Fiscal 2010 ($8.0 million net of income taxes or $0.14 per share, $3.2 million in Television and $8.4 million in Radio). See details in the Management's Discussion and Analysis.
7. Excluding the Copyright Board tariff increases of $9.7 million ($6.7 million net of income taxes or $0.12 per share). See details in the Management's Discussion and Analysis.

ASTRAL MEDIA INC.
Consolidated Statements of Earnings
for the periods ended August 31, 2010 and 2009
(in thousands of Canadian dollars except for per-share data)
(unaudited)

		3 months					12 months
		2010		2009			2010		2009
				(Restated)^(1)					(Restated)^(1)
Revenues		$	238,396	$	219,427		$	960,959	$	905,725
Operating expenses			164,391		142,759			654,172		612,582
			74,005		76,668			306,787		293,143
	Part II licence fees accrual reversal		-		-			11,552		-
	Copyright Board tariff increases		(9,683)		-			(9,683)		-
EBITDA^(2)			64,322		76,668			308,656		293,143
	Depreciation		5,973		5,222			24,859		21,467
	Amortization of intangible and non-current assets		1,820		1,241			5,973		4,751
	Interest expense, net		5,995		7,978			26,307		36,968
	Restructuring charges		-		1,076			-		4,383
Earnings before income taxes, excluding impairment of broadcast licences^(2)			50,534		61,151			251,517		225,574
Impairment charge on broadcast licences			-		399,459			-		399,459
Earnings (loss) before income taxes			50,534		(338,308)			251,517		(173,885)
Income tax provision before undernoted			12,133		16,894			74,772		70,340
Future income tax recovery resulting from impairment charge on broadcast licences			-		(81,970)			-		(81,970)
Future income tax recovery resulting from income tax rate changes			-		-			(8,397)		-
			12,133		(65,076)			66,375		(11,630)
Net earnings (net loss) ^(3)		$	38,401	$	(273,232)		$	185,142	$	(162,255)
Earnings (loss) per share
	- Basic ^(4)	$	0.68	$	(4.86)		$	3.28	$	(2.89)
	- Diluted	$	0.67	$	(4.86)		$	3.24	$	(2.89)
Weighted average number of shares outstanding - basic (in thousands)			56,598		56,170			56,471		56,100
Weighted average number of shares outstanding - diluted (in thousands)			57,336		56,170			57,167		56,100

(1)	Following the adoption of Canadian Institute of Chartered Accountants' ("CICA") Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).
(2)	See Appendix 1.
(3)	See Appendix 1 for the net earnings (net loss) before Copyright Board tariff increases, Part II licences fees accrual reversal, impairment of broadcast licences and future income tax recoveries.
(4)	See Appendix 1 for the basic earnings (loss) per share before Copyright Board tariff increases, Part II licences fees accrual reversal, impairment of broadcast licences and future income tax recoveries.

ASTRAL MEDIA INC.
Consolidated Statements of Cash Flows
for the periods ended August 31, 2010 and 2009
(in thousands of Canadian dollars)
(unaudited)

			3 months						12 months
				2010	2009				2010		2009
Cash and cash equivalents provided by (used for):					(Restated)^(1)						(Restated)^(1)
OPERATING ACTIVITIES
	Net earnings (net loss)		$	38,401	$		(273,232)		$	185,142	$	(162,255)
	Non-cash charges (credits):
		Part II licence fees accrual reversal		-			-			(11,552)		-
		Stock-based compensation costs		1,182			1,141			5,987		5,912
		Depreciation and amortization		7,793			6,463			30,832		26,218
		Imputed interest on other non-current liabilities		541			734			2,182		2,637
		Amortization of deferred financing costs		171			172			686		687
		Impairment charge on broadcast licenses		-			399,459			-		399,459
		Future income tax expense (recovery) net before undernoted		5,229			(72,736)			18,305		(63,268)
		Future income tax recovery resulting from income tax rate changes		-			-			(8,397)		-
	Cash flow from operations^(2)			53,317			62,001			223,185		209,390
	Additional pension plan contributions			(9,641)			-			(9,641)		-
	Net change in non-cash operating items			2,775			(567)			(30,807)		11,238
Cash provided by operating activities				46,451			61,434			182,737		220,628
INVESTING ACTIVITIES
	Short-term investments - cashed			-			-			-		9,962
	Additions to property, plant and equipment			(22,175)			(17,023)			(53,646)		(48,374)
	Additions to other intangible and non-current assets			(7,450)			(879)			(16,304)		(6,255)
	Business acquisition, net of cash acquired			-			-			-		(2,787)
Cash used for investing activities				(29,625)			(17,902)			(69,950)		(47,454)
FINANCING ACTIVITIES
	Repayment of long-term debt			(10,000)			(45,000)			(105,000)		(120,000)
	Shares repurchased			(87)			-			(1,610)		-
	Stock options exercised			1,501			151			10,569		1,654
	Dividends			(14,152)			(14,046)			(28,301)		(28,084)
Cash used for financing activities				(22,738)			(58,895)			(124,342)		(146,430)
Net change in cash				(5,912)			(15,363)			(11,555)		26,744
Cash (bank overdraft) - beginning of period				17,457			38,463			23,100		(3,644)
Cash - end of period			$	11,545	$		23,100		$	11,545	$	23,100

^(^1^)	Following the adoption of CICA Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).
^(2)	See Appendix 1.

ASTRAL MEDIA INC.
Consolidated Balance Sheets
as at August 31
(in thousands of Canadian dollars)

		2010			2009
ASSETS					(Restated) ^(1)
Current
	Cash	$	11,545		$	23,100
	Accounts receivable		169,240			143,803
	Program and film rights		106,084			81,298
	Prepaid expenses and other current assets		29,451			27,904
			316,320			276,105
Program and film rights			65,923			72,466
Property, plant and equipment			179,938			151,637
Broadcast licences			1,413,059			1,408,037
Goodwill			356,945			356,945
Other intangible and non-current assets			79,362			50,894
Future income tax assets			66,005			79,522
		$	2,477,552		$	2,395,606
LIABILITIES
Current
	Accounts payable and accrued liabilities	$	138,119		$	138,771
	Income taxes payable		16,654			12,191
	Program and film rights payable		64,908			58,220
	Future income tax liabilities		5,329			4,481
			225,010			213,663
Long-term debt			588,447			692,761
Future income tax liabilities			240,382			243,353
Program and film rights payable			12,668			6,955
Other non-current liabilities			62,302			58,312
Derivative financial instruments			9,699			22,377
			1,138,508			1,237,421
SHAREHOLDERS' EQUITY
Capital stock			768,762			753,028
Contributed surplus			17,200			17,068
Retained earnings			560,119			404,198
Accumulated other comprehensive loss			(7,037)			(16,109)
			553,082			388,089
			1,339,044			1,158,185
		$	2,477,552		$	2,395,606

(1)	Following the adoption of CICA Handbook Section 3064, the Company has restated its consolidated balance sheet as at August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).

ASTRAL MEDIA INC.
Business Segments
for the periods ended August 31, 2010 and 2009
(in thousands)
(unaudited)

	3 months					12 months
	2010		2009			2010		2009
			(Restated)^(1)					(Restated)^(1)
REVENUES
Television	$	135,158	$	124,898		$	550,728	$	513,265
Radio		81,351		76,180			333,563		323,002
Out-of-Home		21,887		18,349			76,668		69,458
	$	238,396	$	219,427		$	960,959	$	905,725
EBITDA ^(2)
Television	$	45,590	$	42,706		$	204,236	$	181,760
Radio		16,866		28,589			105,325		109,815
Out-of-Home		7,766		10,258			25,991		26,175
Corporate Costs		(5,900)		(4,885)			(26,896)		(24,607)
	$	64,322	$	76,668		$	308,656	$	293,143

(1)	Following the adoption of CICA Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).
(2)	See Appendix 1.

ASTRAL MEDIA INC.
Appendix 1
Supplementary Measures
for the periods ended August 31, 2010 and 2009
(unaudited)

---

In addition to discussing earnings measures in accordance with Canadian generally accepted accounting principles ("GAAP"), this press release provides the following supplementary measures which are also factors used by management in monitoring and evaluating the performance of the Company and its business segments:

EBITDA (earnings before interest, taxes, depreciation and amortization) is provided to assist investors in determining the ability of the Company to generate cash flow from operating activities and to cover financial charges. Other items such as restructuring charges and the impairment of broadcast licences are excluded from earnings in the determination of EBITDA as they are not considered to be in the ordinary course of business. EBITDA is also an indicator widely used for business valuation purposes. EBITDA margin is defined as the ratio obtained by dividing EBITDA by revenues.

The following table reconciles GAAP measures disclosed in the consolidated statements of earnings for the periods ended August 31, 2010 and 2009 to EBITDA:

	3 months			12 months
(in thousands of $)	2010	2009		2010	2009
		(Restated) ^(1)			(Restated) ^(1)
Earnings (loss) before income taxes	50,534	(338,308)		251,517	(173,885)
Impairment of broadcast licences	-	399,459		-	399,459
Depreciation and amortization	7,793	6,463		30,832	26,218
Interest expense, net	5,995	7,978		26,307	36,968
Restructuring charges	-	1,076		-	4,383
EBITDA	64,322	76,668		308,656	293,143

Earnings before income taxes, excluding impairment of broadcast licences. This measure provides an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the non-cash impairment of broadcast licences.

The following table reconciles GAAP measures disclosed in the consolidated statements of earnings for the periods ended August 31, 2010 and 2009 to earnings before income taxes, excluding impairment of broadcast licences:

	3 months			12 months
(in thousands of $)	2010	2009		2010	2009
		(Restated) ^(1)			(Restated) ^(1)
Earnings (loss) before income taxes	50,534	(338,308)		251,517	(173,885)
Impairment of broadcast licences	-	399,459		-	399,459
Earnings before income taxes, excluding impairment of broadcast licences	50,534	61,151		251,517	225,574

(1)	Following the adoption of CICA Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).

Net earnings and basic earnings per share before Copyright Board tariff increases, Part II licence fees accrual reversal, impairment of broadcast licences and future income tax recoveries. These measures provide an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the non-cash future income tax recovery or expense resulting from income tax rate changes, some regulatory charges over which the Company has no control, and the impact of the non-cash impairment of broadcast licences.

The following tables reconcile GAAP measures disclosed in the consolidated statements of earnings for the periods ended August 31, 2010 and 2009 to net earnings and basic earnings per share, before Copyright Board tariff increases, Part II licence fees accrual reversal, impairment of broadcast licences and future income tax recoveries:

	3 months			12 months
(in thousands of $)	2010	2009		2010	2009
		(Restated) ^(1)			(Restated) ^(1)
Net earnings (net loss)	38,401	(273,232)		185,142	(162,255)
Copyright Board tariff increases, net of income taxes	6,714	-		6,714	-
Part II licence fees accrual reversal, net of income taxes	-	-		(8,010)	-
Impairment of broadcast licences	-	399,459		-	399,459
Future income tax recovery resulting from impairment of broadcast licences	-	(81,970)		-	(81,970)
Future income tax recovery resulting from income tax rate changes	-	-		(8,397)	-
Net earnings before Copyright Board tariff increases, Part II licence fees accrual reversal, impairment of broadcast licences and future income tax recoveries	45,115	44,257		175,449	155,234

	3 months			12 months
(in dollars)	2010	2009		2010	2009
		(Restated) ^(1)			(Restated) ^(1)
Basic earnings (loss) per share	0.68	(4.86)		3.28	(2.89)
Copyright Board tariff increases, net of income taxes	0.12	-		0.12	-
Part II licence fees accrual reversal, net of income taxes	-	-		(0.14)	-
Impairment of broadcast licences	-	7.11		-	7.12
Future income tax recovery resulting from impairment of broadcast licences	-	(1.46)		-	(1.46)
Future income tax recovery resulting from income tax rate changes	-	-		(0.15)	-
Basic earnings per share, before Copyright Board tariff increases, Part II licence fees accrual reversal, impairment of broadcast licences and future income tax recoveries	0.80	0.79		3.11	2.77

(1)	Following the adoption of CICA Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).

Cash flow from operations is defined as cash provided by operating activities before the additional pension plan contributions and the net change in non-cash operating items. This measure provides an indication of the Company's ability to generate cash flows without considering certain timing and other factors causing variations in non-cash operating items.

The following table reconciles GAAP measures disclosed in the consolidated statements of cash flows for the periods ended August 31, 2010 and 2009 to cash flow from operations:

	3 months			12 months
(in thousands of $)	2010	2009		2010	2009
		(Restated) ^(1)			(Restated) ^(1)
Cash provided by operating activities	46,451	61,434		182,737	220,628
Additional pension plan contributions	9,641	-		9,641	-
Net change in non-cash operating items	(2,775)	567		30,807	(11,238)
Cash flow from operations	53,317	62,001		223,185	209,390

The above supplementary measures do not have a standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies.

(1)	Following the adoption of CICA Handbook Section 3064, the Company has restated results of operations for the three- and twelve-month periods ended August 31, 2009 (see Note 1.c) of the audited consolidated financial statements for the year ended August 31, 2010).

For further information:

Media:

Hugues Mousseau Manager, Corporate Communications    Astral Media Inc. 514-939-5000

Analysts:

Claude Gagnon Senior Vice-President and Chief Financial Officer Astral Media Inc. 514-939-5000