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The CRTC released statistical and financial summaries for Canada's conventional television stations. The report provides information on the sector's profitability, revenues and expenditures for the period of September 1, 2008, to August 31, 2009.
Profitability
Private broadcasters saw their total revenues shrink by 7.9%, going from $2.14 billion in 2008 to $1.97 billion in 2009. Although operating expenses were cut by 2.4%, these broadcasters lost $116.4 million before interest and taxes over the 2009 broadcast year, which resulted in a negative profit margin of 5.9%.
In 2008, private broadcasters reported profits before interest and taxes (PBIT) of $8 million and a PBIT margin of 0.4%.
Revenues and expenses
Private conventional television stations experienced a decline of more than $190 million in local and national advertising sales. From 2008 to 2009, local advertising revenues decreased by 10.1% from $387.2 million to $348 million, and national advertising revenues by 10.3% from $1.47 billion to $1.32 billion.
The acquisition and production of programs represented 75.2% of all expenses, which came down from $2.1 billion in 2008 to $2 billion in 2009. Private broadcasters invested 3.3% less on Canadian programming last year, or $599.4 million compared to $619 million. In 2009, broadcasters paid $176.2 million to independent producers to acquire programming, which amounted to an increase of $30.2 million in one year.
Meanwhile, spending on foreign programming reached its highest level yet at 59% of all programming expenses, or $846.3 million. This total represented a 9.2% increase over the $775.2 million that was spent in 2008.
Canadian programming
Spending on Canadian programming included $75.4 million for drama, $80.9 million for general interest programming, $312.1 million for news programs, $65.9 million on other information programs, $38.3 million for musical and variety shows, $3.8 million for sports programs, and $11.1 million for game shows.
Source: CRTC, 03/18/2010
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