CRTC releases financial summaries for 2009
By Adnews Staff
The Canadian Radio-television and Telecommunications Commission has released its latest financial summaries for Canada's conventional television stations. The report provides information on the sector's profitability, revenues and expenditures from September 1, 2008 to August 31, 2009. During that period, the total revenues of private broadcasters decreased by 7.9%, from $2.14 billion in 2008 to $1.97 billion in 2009. Despite a 2.4% cut in operating expenses, these broadcasters lost $116.4 million before interest and taxes over the 2009 broadcast year, for negative profits of 5.9%. In 2008, private broadcasters reported profits before interest and taxes of $8 million and a profit margin of 0.4%. Local and national advertising sales at private conventional television stations declined by $190 million over the reporting period. From 2008 to 2009, local advertising revenues decreased by 10.1% from $387.2 million to $348 million, while national advertising revenues decreased by 10.3% from $1.47 billion to $1.32 billion. The acquisition and production of programs represented 75.2% of all expenses, which were down to $2 billion in 2009 from $2.1 billion in 2008. Private broadcasters invested 3.3% less on Canadian programming last year, or $599.4 million. In 2009, broadcasters paid $176.2 million to independent producers to acquire programming, an increase of $30.2 million in one year. Foreign programming accounted for a record-high 59% of all programming expenses at $846.3 million, a 9.2% increase over 2008. In 2009, conventional television stations employed 6,747 people and paid a total of $527.6 million in salaries, down from 2008's 7,406 employees and $576.9 million in salaries. .... The CRTC has also released its latest financial summaries for Canadian broadcasting distribution companies. Total revenues in this sector grew by $1.1 billion to a total $11.4 billion in 2009. Revenue growth for cable companies was 11.9% last year, compared to 16% in 2008 and 2007. Total revenues increased from $8.2 billion in 2008 to $9.2 billion in 2009. Operating expenses were up 10.6% over the same period to $5.1 billion. Cable profits before interest and taxes rose from $2.1 billion to $2.3 billion in one year. This represents a profit margin of 25.1% in 2009, compared to 25.3% in 2008. Canadian cable companies increased their subscriber based by 2.2% to 8.1 million households. Cable companies employed 22,716 people in 2009 and paid $1.6 billion in salaries, up from 19,848 employees and paid $1.2 billion in salaries the previous year. Total revenues for direct-to-home satellite distribution and multipoint distribution system companies increased by 7% from $2 billion to $2.2 billion. Operating expenses increased slightly from $1.66 billion to $1.73 billion. Companies in this category reported profits of $82 million in 2009, up from $81.4 million in 2008. This represents a profit margin of 3.7% and 4% respectively. Subscribers rose 2.3% to 2.8 million. In 2009, these companies employed 2,915 people and paid $215.9 million in salaries, compared to 2,975 employees and $193.4 million in salaries in 2008. Broadcasting distribution companies contributed $352.4 million to Canadian programming in 2009, an increase of 8.3%. In 2009, cable companies paid $1.7 billion in wholesale fees to the pay and specialty services they distribute, an increase of 10.6%. Payments made by DTH and MDS companies to their affiliates increased by 8.6% to $804.5 million.