Commercial Private Radio Revenues on the Rise



    OTTAWA-GATINEAU, July 23 /CNW Telbec/ - The Canadian Radio-television and
Telecommunications Commission today released statistical and financial
summaries for 2007 that indicate continued economic growth for Canada's
commercial private radio stations.
    Total revenues for Canada's AM and FM radio stations increased by 6.2%
going from $1.4 billion in 2006 to $1.5 billion in 2007. When factoring in
$1.159 billion in expenses, Canada's radio stations enjoyed profits of
$300.2 million, an increase of 5.5% or $15.7 million before interest and taxes
(PBIT). The profit margin of 19. 99% is slightly below last year's results of
20.11%, which was the third highest profit margin according to Statistics
Canada in the last 40 years after the 21.14% and 20.5% margins posted in 2005
and 1971 respectively.
    These profits are directly linked to an increase in advertising revenue.
From 2006 to 2007, local advertising revenues grew by 4.8% from $1.037 billion
to $1.087 billion. In turn, revenue from national time sales increased by 8.3%
from $351.3 million in 2006 to $380.6 million in 2007.

    FM radio

    FM radio stations clearly dominate the Canadian marketplace with revenues
totalling slightly over $1.1 billion as compared to $329.4 million for AM
stations. Over the past five years, revenues have consistently risen for
English FM stations. In 2003, their revenues stood at $701.5 million. By 2007,
they had increased to $947.5 million. In comparison, French FM stations saw
their revenues increase from $172.9 to $209 million while ethnic stations
almost doubled their revenues from $9.8 to $16.1 million over the same period.

    AM radio

    Revenues for English AM stations have also experienced a steady increase
going from $259.8 in 2003 to $291.7 million in 2007. Ethnic stations have
enjoyed slight increases during this period with their revenues now standing
at $21.8 million.
    However, revenues for French AM stations were down by $2.3 million in
2007 going from $18.2 to $15.9 million. This reflects an ongoing pattern of
declining revenues that has plagued the French radio market over the past five
years where in 2003 revenues were at $26.1 million.
    Overall, radio broadcasting continues to be a major employer in Canada.
With the opening of 23 new radio stations in 2007, Canada now has 619 stations
located across the country. These radio stations employ over 10,000 employees
and represent total salaries of $606,952,639.

    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.

    Commercial Private Radio Statistical and Financial Summaries 2003 - 2007
http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/radio2007/Cover.htm

    The CRTC

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




For further information:

For further information: Media Relations: MediaRelations
(http://support.crtc.gc.ca/CRTCSubmissionMU/forms/Mediarelations.aspx?lang=e),
(819) 997-9403, Fax: (819) 997-4245; General Inquiries: (819) 997-0313, TDD:
(819) 994-0423, Fax: (819) 994-0218, Toll-free No. 1-877-249-CRTC (2782), TDD
- Toll-free No. 1-877-909-CRTC (2782), On-line services
(http://support.crtc.gc.ca/crtcsubmissionmu/forms/main.aspx?lang=e); These
documents are available in alternative format upon request.


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