OTTAWA-GATINEAU – The CRTC released its annual look at the financial performance of the broadcast distribution undertaking sector (cable and satellite) today.
Using its traditional August 31st year-end the figures are from the 2004 broadcast year ending that day. Overall, there was a good increase in the revenues of Canadian BDUs, except among the small, few fixed wireless TV providers, which continue to fare poorly.
Revenues for the cable industry saw an increase of 9.4% in one year, going from close to $4.2 billion in 2003 to more than $4.5 billion in 2004. This growth is consistent with the 9.6% average annual increase in revenues attained by the industry from 2000 to 2004, says the Commission report.
Profits before interest and taxes (PBIT) increased by 44.9%, from $728.2 million in 2003 to nearly $1.1 billion dollars in 2004, raising the industry’s PBIT margin from 17.5% to 23.2%.
The number of basic service subscribers increased very slightly, to 6,625,164 in 2004 compared with 6,581,282 in 2003. The number of Canadian households with access to cable in 2004 was 10,190,363. The industry employed 11,783 people and paid $612.6 million in salaries.
Combined revenues for DTH and MDS increased by 12.7% in 2004, due primarily to the revenue growth of Bell ExpressVu and Star Choice. “MDS revenues declined for the third consecutive year,” says the release. “The combined PBIT for DTH and MDS remained negative in 2004, although the level of losses for both DTH and MDS declined for the third year in a row.”
DTH and MDS had 2,316,714 basic-tier subscribers in 2004, up 5.2% from 2,201,688 in 2003. They employed 2,621 people and paid out $109.6 million in salaries.
As for contributions to Canadian content, in 2004, cable carriers contributed close to $85 million, and DTH and MDS undertakings, $66.6 million. In total, $151.6 million was paid out in 2004, compared with $142.5 million the previous year, an increase of 6.4%. Of that amount, $121.6 million went to the Canadian Television Fund and $30 million to independent funds.
In addition, cable carriers contributed $87.9 million, including depreciation towards the operation of their community channels, adds the release.
The report is a compilation of the financial data from Class 1 cable distribution undertakings as well as DTH and MDS undertakings. It is one of a series of reports on the financial results of the Canadian broadcasting industry published annually by the Commission. The Broadcasting Monitoring Report, which provides notably for an assessment of the impact of regulations on the industry, will be released shortly.
