Rising programming costs kill TV profits

OTTAWA-GATINEAU – A 12.2% increase in spending on the likes of CSI, House, Lost, Prison Break, Ugly Betty, and other U.S. shows helped decimate broadcast TV profits in the 2006 broadcast year, said the CRTC on Wednesday. While overall Canadian television station revenues were flat at close to $2.2 billion, expenditures rose by 7.8%, which reduced profits before interest and taxes (PBIT) from $242.2 million in 2005 to $91 million in 2006. The PBIT margin also decreased from 11.02% in 2005 to 4.14% in 2006. From 2005 to 2006, revenues from the sale of local advertising grew by 3.4% to...