Profits for Canadian television broadcasters up 40% in 2010

Operating revenues in the Canadian television broadcasting sector reached $7.1 billion in 2010, up 8.0% from 2009 according to a report out today by StatsCan. This was the largest annual increase since 2003.

Profits before interest and expenses was $841.4 million, up a massive 40% from the $600.8 million earned in 2009.

Pay and specialty television continued its upward trend in 2010, with operating revenues increasing 11.1% year over year to $3.5 billion. This growth exceeded that of private conventional television (up 8.8%) and public and non-commercial television (up just 0.4%)

The following is the breakdown of revenues for the Canadian television broadcasting sector, in millions of dollars, by type of broadcaster. (the amount in parentheses is the change in revenues from 2009 to 2010)

  • Private Conventional Television: $2,156.8 (+8.8%)
  • Public and non-commercial television: 1,466.4 (+0.4%)
  • Specialty television: 2,655.8 (+9.9%)
  • Pay television: 801.6 (+15.2%)
  • Total: 7,080.7 (+8.0%)

Last year, the operating revenues of pay and specialty television represented 48.8% of the industry’s operating revenues, up from 47.5% in 2009. A decade earlier, this segment accounted for one-third of the television industry’s operating revenues.

The profit margin before interest and taxes of the pay and specialty television segments rose to 25.4% in 2010 for profits before interest and taxes of $877.3 million.

Advertising revenues have long been the largest source of revenue for the television industry. However, in 2009, for the first time in several years, these revenues represented less than half (47.7%) of the sector’s total operating revenues. Although these revenues accounted for close to 60% of the sector’s total operating revenues 10 years ago, that proportion stood at 48.2% in 2010.

Subscription revenues for pay and speciality television accounted for 31.7% of the television industry’s total operating revenues in 2010, up from 22.5% 10 years earlier.

Despite the importance of subscription revenues for specialty television, this segment has also continued to grow its share of the television advertising market, from 32.0% in 2009 to 32.6% in 2010. In 2001, specialty televisions share of the television advertising market stood at 17.1%.

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