Substantial Growth for Canadian Cable Companies

[cablewithaview]

Canadian cable companies' combined revenues have reached unprecedented hieghts, exceeding $7 billion for the first time in history last year, according to a new report released by the Canadian Radio-television and Telecommunications Commission (CRTC).

The CRTC released the statistical and financial summaries for Canadian broadcasting distribution companies.

Overall, total revenues for cable, direct-to-home (DTH) satellite distribution and multipoint distribution system (MDS) companies experienced substantial growth between 2006 and 2007. Cable companies' total revenues exceeded $7 billion for the first time ever in 2007, while the combined revenues of DTH and MDS companies reached a new high of $1.85 billion.

Cable
According to data obtained by the CRTC, total revenues for cable companies increased by 16.1% between 2006 and 2007, rising from $6.1 billion to $7.1 billion. The number of basic-cable subscribers increased from 7.48 million to 7.65 million — a difference of 2.3%.

Cable companies' profits before interest and taxes (PBIT) went from $1.4 billion in 2006 to $1.5 billion in 2007, representing an increase of 10%. However, expenditures also rose by 19.1%, which reduced the PBIT margin from 22.34% in 2006 to 21.17% in 2007.

In 2007, cable companies employed 17,900 people and paid a total of $1.07 billion in salaries. In comparison, in 2006 these companies employed 15,271 people and paid out $933.1 million in salaries.

DTH and MDS
Total combined revenues for DTH and MDS companies increased 11.4% between 2006 and 2007, going from $1.7 billion to $1.85 billion. The number of DTH and MDS subscribers rose only slightly over the same period — by approximately 0.1% to 2.6 million.

After posting a loss of $32 million in 2006, PBIT for these companies grew significantly last year, rising more than 153.6% to $17 million.

The PBIT margin for DTH and MDS companies also increased significantly — from -1.93% in 2006 to 0.93% in 2007.

In 2007, DTH and MDS companies employed 2,884 people and paid a total of $191 million in salaries, whereas in 2006 these companies employed 2,813 people and paid out $138.2 million in salaries.

Contributions to Canadian programming

Contributions to Canadian programming made by broadcast distribution companies totalled $296.7 million in 2007, an increase of 8.4% over the previous year. Of this year's total, $155.3 million was directed to the Canadian Television Fund, $38.4 million to independent funds and $103 million to local expression, such as community channels.

Affiliation payments

In 2007, cable companies directed $1.4 billion to affiliates, including pay and specialty services, an increase of 10.4% over the $1.2 billion paid in 2006. Similarly, payments made by DTH and MDS companies to their affiliates grew by 12.3% in one year, rising from $620.3 million to $696.6 million.

Background

The data contained in the report were drawn from the annual reports of Canadian broadcasting distribution companies. Each year, the CRTC publishes a series of reports on the Canadian broadcasting industry's financial situation in an effort to inform stakeholders and the public.


The CRTC
The CRTC is an independent, public authority that regulates and supervises broadcasting and telecommunications in Canada.


mediacastermagazine.com - Mediacaster - 6/21/2008