TORONTO – Revenue growth at Rogers media for the three months ended December 31, 2005 was $34 million, an increase of 12.8% over the fourth quarter of 2004.
Nearly half of the increase over the prior year is due to higher advertising on Rogers Sportsnet due to the return of NHL hockey, said the company’s fourth quarter release today. In addition, revenue from the Blue Jays and Rogers Centre grew $6.6 million over last year reflecting increased attendance and healthy league revenue sharing. The remaining growth over the prior year is due to increased advertising revenue across all Media properties and continued sales growth on The Shopping Channel.
Media operating expenses for the fourth quarter increased $50.2 million from the corresponding period in 2004. Of this increase, $20.2 million is due to higher costs at the Blue Jays and inclusion of costs as a result of the acquisition of Rogers Centre on January 31, 2005.
While hockey’s return boosted revenue, it also resulted in a $18.9 million increase in costs at Sportsnet during the quarter. The launch of the company’s three radio stations in the Maritimes and OMNI BC in Vancouver also caused costs to rise, said the company.
Operating profit in the quarter for Rogers Media decreased by $16.2 million from the corresponding period in 2004. Operating profit margin was 13% compared to 20.7% for the corresponding period in 2004. Again, the decrease in OP margin is largely the result of the return of NHL Hockey, $5 million losses by the Blue Jays, plus the margin dilution impact resulting from the new businesses as described above.
Media had additions to property, plant and equipment of $11.7 million during the last quarter of 2005, compared to $4.2 million in the corresponding period of 2004. The majority of additions were due to enhancements at the Rogers Centre, completion of the new Maritime radio stations and investment in high definition TV broadcast equipment.
Annual revenue for Rogers Media surpassed the $1 billion mark for the first time in 2005, reaching $1.1 billion. That’s a 14.7% increase over 2004. Operating expenses were $969.4 million, a 15.2% increase from ’04.
