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2009 Financial Results for Broadcasting Distributors

2009 Financial Results for Broadcasting Distributors

CRTC released the statistical and financial summaries for Canadian broadcasting distribution companies. This sector of the broadcasting industry continued its strong performance as its total revenues grew by $1.1 billion to reach $11.4 billion in 2009.

Cable
Revenue growth for cable companies slowed marginally to 11.9% last year after having increased by over 16% in both 2007 and 2008. Total revenues climbed from $8.2 billion in 2008 to $9.2 billion in 2009. Operating expenses rose by 10.6% over the same period, or from $4.6 billion to $5.1 billion.

As a result, profits before interest and taxes (PBIT) improved from $2.1 billion to $2.3 billion in one year. However, there was little change in the PBIT margin, which came in at 25.1% in 2009, compared with 25.3% in 2008.

The number of Canadian households that obtained basic-television service from a cable company grew by 2.2% to 8.1 million subscribers.

DTH and MDS
Between 2008 and 2009, total revenues for direct-to-home (DTH) satellite distribution and multipoint distribution system (MDS) companies increased by 7%, going from $2 billion to $2.2 billion. There was little change in operating expenses as they increased only slightly from $1.66 billion to $1.73 billion.

DTH and MDS companies reported a PBIT of $82 million, up from $81.4 million in 2008, and a PBIT margin of 3.7%, down from 4% the previous year.

The number of DTH and MDS subscribers to basic service was 2.3% higher, rising to 2.8 million.

Contributions to Canadian programming
Broadcasting distribution companies contributed $352.4 million to Canadian programming, an increase of 8.3% in one year. Of this total, $179.3 million was directed to the Canadian Television Fund, $50.3 million to independent funds and $122.8 million to local expression, such as cable community channels.

Affiliation payments
In 2009, cable companies paid $1.7 billion in wholesale fees to the pay and specialty services they distribute, an increase of 10.6% over the $1.6 billion paid in 2007. Similarly, payments made by DTH and MDS companies to their affiliates increased by 8.6% in one year, rising from $740.8 million to $804.5 million.

 

Source: CRTC, 03/18/2010

 

 


Originally Posted: 3/18/2010 11:21:30 AM
Last Updated: 4/1/2010 2:21:00 PM