Sales of local advertising for Canadian radio stations reach one billion dollars

    OTTAWA, and GATINEAU, May 16 /CNW Telbec/ - The Canadian Radio-television
and Telecommunications Commission (CRTC) today released the financial results
for the Canadian private commercial radio industry. From 2005 to 2006, total
revenues for AM and FM radio stations increased by 5.7%, going from
$1.3 billion to $1.4 billion, while sales for local advertising rose by 4.6%,
to reach 1.04 billion dollars in 2006, compared with $990.9 million in 2005.
Sales of national advertising increased by 9% in one year, rising from
$322.6 million to $351.5 million.
    Profits before interest and taxes (PBIT) increased by 2.7% to $284.5
million in 2006. The PBIT margin remained steady at 20% in 2005 and 2006.
Total spending by radio stations rose by 6.1% in one year, up to $1.1 billion
in 2006.

    AM radio

    AM radio experienced stronger growth in revenues between 2005 and 2006
than at any other time in the last five years. Revenues rose by 4.6%, from
$306 million to $320 million, while the average rate of revenue growth between
2002 and 2006 was 1.9%. PBIT also increased, going from $13.3 million to $17.8
 million, an increase of 33.7%.
    The increase in revenues was even more pronounced for the 155
English-language AM radio stations. Their revenues rose by 5.3% to $280.4
million in 2006, while PBIT came in at $23 million, an increase of 33.4% over
2005. The 14 French-language AM radio stations experienced revenue growth of
1.4%, from $17.9 million to $18.2 million. However, they experienced losses of
$7.4 million before interest and taxes in 2006, compared with losses of
$6.7 million in 2005.
    As for the 9 ethnic and Aboriginal AM radio stations, their revenues
declined by 1.2%, coming in at $21.5 million in 2006, and their PBIT totalled
$2.1 million.

    FM radio

    Revenues for FM radio stations in Canada have been steadily increasing
over the last five years. They reached $1.1 billion in 2006, which represents
a growth of 6% over the $1.03 billion posted in 2005. PBIT remained relatively
stable, coming in at $266.7 million in 2006 compared with $263.7 million in
2005.
    The 331 English-language FM radio stations posted total revenues of
$877.3 million in 2006, an increase of 6.1%, and PBIT held steady at
$232.9 million. As for the 79 French-language FM radio stations, their
revenues hit $200.3 million, which is an increase of 4.8% over the previous
year, and their PBIT totalled $32.9 million in 2006, up by 9.8% from 2005.
    Finally, revenues for the 9 ethnic and Aboriginal radio stations
increased by 15.2%, rising from $13.1 million in 2005 to $15.1 million in
2006. Their PBIT remained more or less stable, coming in at $924,937 compared
with $919,356 the previous year.
    The Canadian radio industry employed 9,763 people in 2006 and paid a
total of $577.8 million in salaries.

    Background

    The data contained in this report were drawn from the financial
statements of private commercial radio stations. Each year, the Commission
publishes the financial statements for radio, conventional television,
specialty, pay, pay-per-view and video-on-demand services, as well as for
broadcast distribution undertakings, in order to allow interested parties to
stay informed about the financial situation of the Canadian broadcasting
industry.

    The CRTC

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

    Reference document:
    Commercial Private Radio - Statistical and Financial Summaries
    2002 - 2006
http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/radio2006/Cover.htm

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