OTTAWA – Operating revenues at Canada’s private radio broadcasters topped $1.6 billion in 2010, a modest 3.2% increase from 2009 figures, according to data released by Statistics Canada.
Of those revenues, 97.6% were from advertising, however, revenues have yet to surpass those registered in 2008 before the general economic downturn. The year 2009 marked the first year-over-year drop in revenues since 1993.
Profit margin before interest and taxes (PBIT) increased by 19.1% last year, compared with 17.9% in 2009. Private radio broadcasters have consistently reported a PBIT in excess of 15% since the late 1990s, the report continued.
Ontario radio broadcasters were the most profitable for a second consecutive year, with 22.9 cents of profit before interest and taxes per dollar of revenue. The region with the lowest profit margin was Saskatchewan, with 11 cents, however, the profit margin before interest and taxes has been rising in Saskatchewan for two years, as it has been in Quebec and Manitoba. For the first time since 1976, the profit margin exceeded 10% in all regions of Canada.
While the number of stations broadcasting on the AM band dropped by four to 147 this year, operating revenues were up 1.3%, their best return in 20 years with a 10% profit margin before interest and taxes. FM stations also increased their operating revenues (+3.7%) in 2010, while the number of stations grew to 528. The profit margin before interest and taxes of FM stations increased slightly from 20.7% in 2009 to 21.4% in 2010, however, this margin is still lower than the 24.5% recorded in 2008.
For a second consecutive year, Francophone radio stations (+6.0%) recorded stronger growth in their operating revenues than Anglophone stations (+2.6%) and ethnic stations (+4.5%).
