The regulator reports that Canadian cable companies earned profits before interest and taxes (PBIT) of $2.6 billion, up 10.6% from $2.3 billion in 2009 and up 121% from $1.2 billion five years earlier.
Contributing largely to the big jump in profits was strong revenue growth of 9.7% in 2010 after having increased 11.9% in 2009, and over 16% in 2008 and 2009. Cable company revenues have now more than double from under $5 billion just five years.
The number of Canadian households that obtained basic television service from a cable company rose by 2.2% to reach 8.3 million subscribers. The number of basic cable subscribers is by about 20% since 2005.
DTH and MDS
Results at Direct-to-Home (DTH) and multipoint distribution system (MDS) companies was nowhere near as strong as in Cable. Total revenues for satellite and multipoint distribution companies, while increasing from $2.2 billion in 2009 to $2.4 billion in 2010, were still less than the profits made by the Cable companies.
Total profits before interest and taxes at DTH and MDS companies were $163.9 million, a long way from the $32 million lost four years earlier but still a fraction of cable revenues.
The number of Canadian households that obtained basic television service from satellite or multipoint distribution companies increased by 3.7% in 2010 to reach 2.9 million.
Total Cable, DTH, and MDS
Overall revenues in the Canadian Broadcasting distribution industry grew by $1.1 billion from $11.4 billion in 2009 to $12.5 billion in 2010 while profits climbed to $2.6 billion.
Profits in the DTH and MDS averaged $57 per customer versus cable companies who earned an average of $310 per subscriber.
Read the complete Broadcast Distribution report on the CRTC website.
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