OTTAWA-GATINEAU – Led by cable, broadcasting distribution companies in Canada saw their revenues increase by more than $1 billion in 2010, according to CRTC data released Thursday.
The combined revenues for cable, satellite and multipoint distribution companies rose from $11.4 billion in 2009 to $12.5 billion for the year ended August 31, 2010.
The TV service providers collectively contributed $367.9 million to Canadian programming – $189.1 million to the Canadian Media Fund, $52.3 million to independent funds, and $126.5 million to cable community channels and other sources of local expression. An additional $100.7 million was contributed to the Local Programming Improvement Fund (LPIF) to support local news and local programming in non-metropolitan markets across Canada.
Cable companies
Total revenues generated by cable companies increased by 9.7% from $9.2 billion to $10.1 billion, while operating expenses went up 9% from $5.1 billion to $5.5 billion. As a result, cable cos reported profits before interest and taxes (PBIT) of $2.5 billion and a PBIT margin of 25.3%, both higher than their 2009 results which came in at $2.3 billion and 25.1%, respectively.
The number of Canadian households that received basic television service from a cable company rose by 2.2% to reach 8.3 million subscribers. The cable companies paid $1.9 billion in wholesale fees to the pay and specialty TV services they distribute, an increase of 11.6% from the $1.7 billion paid the previous year.
In 2010, cable companies employed 24,076 people and spent $1.8 billion on salaries, compared to employing 22,716 and spending $1.7 billion on salaries in the previous year.
Satellite and multipoint distribution companies
Satellite and multipoint distribution companies increased their total revenues from $2.2 billion to $2.4 billion in 2010, an increase of 8.9% from the previous year. Operating expenses went up by 4%, from $1.75 billion to $1.82 billion.
Over the last five years, these companies’ PBIT has bounced back from a deficit of $32 million in 2006 to a profit of $163.9 million in 2010. The PBIT margin followed a similar trajectory during the same period, rising from a negative profit margin of -1.9% to a positive profit margin of 6.8%.
The number of Canadian households that obtained basic television service from satellite or multipoint distribution companies increased by 3.7% to 2.9 million. The wholesale fees paid by satellite companies rose by 4.5% in one year, going from $367.7 million to $384.2 million.
In 2010, these companies employed 2,704 people and paid $232.7 million in salaries. Last year they employed 2,982 people and paid $226.2 million in salaries.
Click here for statistical and financial summaries from 2006 through 2010.
