CRTC report shows strong growth in the Canadian broadcasting distribution industry



    OTTAWA and GATINEAU, June 18 /CNW Telbec/ - The Canadian Radio-television
and Telecommunications Commission (CRTC) today released the statistical and
financial summaries for Canadian broadcasting distribution companies.
    Overall, total revenues for cable, direct-to-home (DTH) satellite
distribution and multipoint distribution system (MDS) companies experienced
substantial growth between 2006 and 2007. Cable companies' total revenues
exceeded $7 billion for the first time ever in 2007, while the combined
revenues of DTH and MDS companies reached a new high of $1.85 billion.

    Cable

    According to data obtained by the CRTC, total revenues for cable
companies increased by 16.1% between 2006 and 2007, rising from $6.1 billion
to $7.1 billion. The number of basic-cable subscribers increased from
7.48 million to 7.65 million - a difference of 2.3%.
    Cable companies' profits before interest and taxes (PBIT) went from
$1.4 billion in 2006 to $1.5 billion in 2007, representing an increase of 10%.
However, expenditures also rose by 19.1%, which reduced the PBIT margin from
22.34% in 2006 to 21.17% in 2007.
    In 2007, cable companies employed 17,900 people and paid a total of
$1.07 billion in salaries. In comparison, in 2006 these companies employed
15,271 people and paid out $933.1 million in salaries.

    DTH and MDS

    Total combined revenues for DTH and MDS companies increased 11.4% between
2006 and 2007, going from $1.7 billion to $1.85 billion. The number of DTH and
MDS subscribers rose only slightly over the same period - by approximately
0.1% to 2.6 million.
    After posting a loss of $32 million in 2006, PBIT for these companies
grew significantly last year, rising more than 153.6% to $17 million. The PBIT
margin for DTH and MDS companies also increased significantly - from -1.93% in
2006 to 0.93% in 2007.
    In 2007, DTH and MDS companies employed 2,884 people and paid a total of
$191 million in salaries, whereas in 2006 these companies employed
2,813 people and paid out $138.2 million in salaries.

    Contributions to Canadian programming

    Contributions to Canadian programming made by broadcast distribution
companies totalled $296.7 million in 2007, an increase of 8.4% over the
previous year. Of this year's total, $155.3 million was directed to the
Canadian Television Fund, $38.4 million to independent funds and $103 million
to local expression, such as community channels.

    Affiliation payments

    In 2007, cable companies directed $1.4 billion to affiliates, including
pay and specialty services, an increase of 10.4% over the $1.2 billion paid in
2006. Similarly, payments made by DTH and MDS companies to their affiliates
grew by 12.3% in one year, rising from $620.3 million to $696.6 million.

    Background

    The data contained in this report were drawn from the annual reports of
Canadian broadcasting distribution companies. Each year, the CRTC publishes a
series of reports on the Canadian broadcasting industry's financial situation
in an effort to inform stakeholders and the public.
    Broadcast Distribution - Class 1, 2 and 3 - Statistical and Financial
Summaries 2003 - 2007
http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/dist2007/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 # 1-877-249-CRTC (2782), TDD -
Toll-free # 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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