OTTAWA-GATINEAU – Profits at Canada’s private radio stations jumped 23.8% in 2005, says new data released today by the CRTC, just in time for the Radio Policy Review, which will begin on May 15th.
Revenues for Canadian radio stations in 2005 increased by 8.7% over 2004 to $1.3 billion, while profits before interest and taxes (PBIT) jumped to nearly $277 million dollars in 2005. "These growth rates exceeded the average rates recorded over the last five years, during which revenues increased at an average rate of 5.7%, and PBIT at 12.8%," says the release.
Of course, FM led the way.
In 2005, FM radio revenues grew by 11.8% to a little over one billion dollars. FM radio’s PBIT also increased by 19.6% over the same period, from $220.3 million to $263.3 million. Local advertising brought in $742.2 million in 2005 for FM radio stations, an increase of 7.9% over 2004, while revenues from national advertising increased by 22.5%, to $272 million, says the release.
Revenues for English-language FM radio stations rose by 11.3% compared to ’04, to $824.7 million in 2005, while those for French-language stations grew by 10.6% to $190.8 million. PBIT for English-language stations totaled $232.4 million in 2005, an increase of 20.9%, and that of French-language stations came just under $30 million – 8.2% higher than in 2004. Revenues for ethnic and Aboriginal FM radio stations went from $10.6 million in 2004 to $16.8 million in 2005, an increase of 59.6%, and their PBIT came in at a little over one million dollars in 2005, compared with $454,000 the previous year.
AM radio still has its challenges but saw PBIT rise substantially in 2005, led by a strong showing among English stations, offset by French AM station losses.
While revenues for AM radio decreased by 0.7% year over year, to $300.4 million in 2005, due to a decline in local ad revenues, AM stations PBIT rose from $3.4 million in 2004 to $13.6 million in 2005.
Revenues for English-language radio stations rose by 2% to $264.7 million in 2005, while those of French-language AM stations fell from $22.7 million to $17.5 million. PBIT for English-language AM stations increased to $17.2 million in 2005, a big 244% increase compared with $5 million in 2004. However, French-language AM stations experienced higher losses before interest and taxes, from $4.7 million in 2004 to $6.2 million in 2005.
Revenues for ethnic and Aboriginal AM stations decreased from $20.3 million in 2004 to $18.2 million in 2005, and their PBIT fell from $3.2 million to $2.6 million over the same period.
The Canadian commercial radio industry employed 9,303 people in 2005, compared with 9,071 in 2004, and paid a total of $542.4 million in salaries.
The data contained in this report were drawn from the financial statements of Canadian commercial radio undertakings. It is one in a series of reports on broadcasting published annually by the CRTC in order to inform interested parties of the current financial situation of this Canadian industry.
