OTTAWA and GATINEAU – Canada’s 675 commercial radio stations reported total revenue of $1.62 billion in the 2012 broadcast year, a figure which has slowly but steadily increased since 2009, according to the CRTC’s latest statistical and financial report for this sector released today.
Despite competition from satellite, online and mobile services, total revenues for AM and FM stations increased by 0.4%, from $1.61 billion in 2011 to $1.62 billion in 2012; with the report indicating revenues have increased by 7.4% since 2009.
While overall sales of local and national times have also steadily risen over that same period, local sales saw a slight decline in 2012 at $1.131 billion, down from $1.134 billion in 2011.
The CRTC report says expenses declined by $3.7 million in 2012. As a result, profits before interest and taxes (PBIT) rose from $311 million to $323 million, or 3.7%. Canada’s radio market has seen marginal year-over-year increases in profits for the last for years.
Canada’s FM radio stations continued to generate the majority of total revenues at $1.314 billion, slightly up from $1.302 billion in 2011. Eleven new FM stations were added in 2012, bringing the total operating in Canada to 546.
Revenues for English-language FM stations remained virtually the same at $1.04 billion, while those for French-language FM stations increased by 1.7% to $251.8 million. Revenues for ethnic FM stations grew by 1.9% for a total of $20 million.
The number of AM stations in Canada declined from 134 in 2011 to 129 in 2012 as some stations converted to the FM band, a trend which is reflected in the total revenues of $306 million, a decline of 1.6% from $311 million reported in 2011.
Earnings for English-language AM stations remained relatively the same at approximately $275 million. In contrast, ethnic AM stations saw their revenues increase by over 3% to $25.2 million.
In 2012, Canadian radio stations employed 10,050 people and paid $681 million in salaries.
In its recently-released Three-Year Plan, the CRTC announced that it will be reviewing its commercial radio policy in 2013-2014. This review will be launched in fall 2013.
For more information on the Commission’s Commercial Radio Statistical and Financial Summaries, click here.
