GATINEAU – Revenues for cable and satellite companies increased by more than $1 billion last year but profit margins continue to decline according to financial information released on Wednesday by the CRTC for the broadcast year ending August 31, 2011.
Cable companies reported revenues of $11 billion in 2011 (an 8.2% increase from the previous year’s total of $10.1 billion), for their basic/non-basic television services as well as Internet and telephone services. They however also reported higher operating expenses of 10.7% during the same period which hit $6.1 billion compared to $5.5 billion in 2010.
The CRTC says the increase was due in part to investments in technology and equipment, as well as higher affiliation payments for distributing pay and specialty services.
There was little change in overall operating profit at $2.5 billion, but the profit margin declined slightly from 25.3% to 23.1%. The number of Canadian households that subscribed to a cable company’s basic television service increased by 2.8% to reach 8.5 million.
Last year cable companies employed 25,241 people and spent $2 billion on salaries. In comparison, the previous year these companies had 24,074 employees and paid a total of $1.8 billion in salaries. Average salary is now $79,031 up 5% from $75,294 in 2010.
Satellite and multipoint distribution companies
Revenues for satellite and multipoint distribution system companies (although virtually all the data is DTH) increased by 5.8% in 2011, to $2.5 billion, compared to $2.4 billion the year before. The regulator reports that operating expenses rose nearly 7% from from $1.82 billion to $1.94 billion. Operating margins for all services declined from 24.1% to 23.5%.
Satellite and multipoint distribution companies reported 2.88 million subscribers in 2011 to their basic television service, up slightly from 2.86 million the year before.
In 2011, these companies employed 2,478 people, a drop of 8.4% from 2,704 staff the year before. Salaries paid in 2011 totaled $222.1 million, a decrease of 4.6% from $232.7 million in 2010. However the average salary rose to $89,633 from $86,066, or a 4.1% increase.
Contributions to Canadian programming
In 2011, BDUs directed $488.9 million, or 6.5% of the revenues collected from subscribers of basic and non-basic television services, for the creation of Canadian programming. This was an increase of 4.3% over the previous year. Of this total, $206.2 million was directed to the Canadian Media Fund, $58.2 million to independent funds, $106.6 million to the Local Programming Improvement Fund and $117.9 million to cable community channels and other sources of local expression.
Affiliation payments
In 2011, cable companies paid $2.1 billion in wholesale fees to the pay and specialty services they distribute, an increase of 10.2% over the $1.9 billion paid the previous year. The fees paid by satellite companies rose by 2.8% in one year, going from $894.4 million to $919 million.
