On December 7, 2005, the Company announced a 50% increase of its annual dividend payment from 20 cents to 30 cents per share, representing an additional cash outflow of approximately $5.3 million in Fiscal 2006.

In December 2005, the Company successfully completed the repurchase of the maximum of 2,647,539 Class A shares under the terms of the issuer bid announced on December 8, 2004 for a total cash consideration of $84.0 million.

On December 7, 2005, the Company also announced a renewal of its normal course issuer bid to repurchase for cancellation up to 2,554,971 Class A shares and 162,031 Class B subordinate voting shares ("Class B shares"), both quantities representing no more than 5% of the outstanding shares as at November 30, 2005 for their respective class of shares. The share repurchase program is being conducted over a maximum period of 12 months which began on December 13, 2005. This could represent a cash outflow of approximately $90 million to $100 million over the course of the bid, which the Company is funding with its existing cash reserves.

The following table summarizes information relating to the Company's normal course issuer bids as at August 31, 2006:

	3 months		12 months
(in thousands of $ except for number of shares)	Number of shares repurchased	Cash consideration	Number of shares repurchased	Cash consideration
Issuer bid starting:
December 13, 2004	n/a	n/a	886,039	28,123
December 13, 2005	663,900	24,239	1,912,300	64,309
Total	663,900	24,239	2,798,339	92,432

The Company's financial condition is amongst the strongest in the industry. No bank debt was carried throughout Fiscal 2006 and cash flows from continuing operations generate sufficient liquidities to cover the Company's current and longer term commitments, as well as operating and capital requirements.

CAPITAL STRUCTURE
As at August 31, 2006, the Company's capital structure consists exclusively of shareholders' equity. There is no debt on the Company's balance sheet other than operating liabilities, and there are no off-balance sheet liabilities.

The number of outstanding shares decreased from a total of 55.0 million shares at the end of Fiscal 2005 to 53.0 million shares at the end of Fiscal 2006 due to the repurchase of shares under the Company's normal course issuer bids, partly offset by the exercise of employee stock options.

CHANGES IN FINANCIAL POSITION
The following table outlines significant changes in the carrying values on the Company's balance sheet as at August 31, 2006 as compared to the prior year:

(in thousands of $)	Increase / (Decrease)	Explanation
Cash, cash equivalents and   short-term investments	12,816	Explained in "Cash Flows and Liquidities".
Program and film rights, net	2,797	Increased spending requirements and differences in the timing   of obligations related to the acquisition of program rights.
Other non-current liabilities   (excluding long-term portion of   program and film rights payable)	(3,981)	Reflects the payment of amounts payable as a result of   licence conditions imposed by the CRTC(1) upon the    acquisition of certain broadcast licences.

(1) Canadian Radio-television and Telecommunications Commission.

CONTRACTUAL OBLIGATIONS

	Payments due in Fiscal:
(in thousands of $)	2007	2008/09	2010/11	2012 and after	Total
Operating leases	27,147	46,028	30,404	37,545	141,124
Other long-term obligations	—	20,572	1,182	6,512	28,266
Total	27,147	66,600	31,586	44,057	169,390

In the normal course of operations, the Company has signed agreements, with terms ranging from one to five years, for the acquisition of program and film rights to be aired on its television networks. The acquisition of the rights and related obligations are contingent on the actual delivery of programming and on other contractual terms. Of the Company's overall commitments, the value of those that are measurable is estimated at $152.4 million, as at August 31, 2006.