OTTAWA-GATINEAU – Just prior to announcing its new broadcast regulatory framework on Monday, the CRTC released the financials on Canada’s conventional television stations for the 2009 broadcast year.
From September 1, 2008, to August 31, 2009, private broadcasters saw their total revenues shrink by 7.9%, going from $2.14 billion in 2008 to $1.97 billion in 2009. Although operating expenses were cut by 2.4%, these broadcasters lost $116.4 million before interest and taxes over the year, which resulted in a negative profit margin of 5.9%.
In 2008, private broadcasters reported profits before interest and taxes (PBIT) of $8 million and a PBIT margin of 0.4%.
Private conventional television stations saw local and national advertising sales drop by $190 million. From 2008 to 2009, local advertising revenues decreased by 10.1% from $387.2 million to $348 million, and national advertising revenues by 10.3% from $1.47 billion to $1.32 billion.
Programming represented 75.2% of all expenses, down from $2.1 billion in 2008 to $2 billion in 2009. Private broadcasters invested 3.3% less on Canadian programming last year, or $599.4 million compared to $619 million. In 2009, broadcasters paid $176.2 million to independent producers to acquire programming, which amounted to an increase of $30.2 million in one year.
Meanwhile, spending on foreign programming reached its highest level yet at 59% of all programming expenses, or $846.3 million. This total represented a 9.2% increase over the $775.2 million that was spent in 2008.
Spending on Canadian programming included $75.4 million for drama, $80.9 million for general interest programming, $312.1 million for news programs, $65.9 million on other information programs, $38.3 million for musical and variety shows, $3.8 million for sports programs, and $11.1 million for game shows.
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