News release

May 4, 2006

Revenues and profits on the rise for Canadian commercial radio

OTTAWA-GATINEAU — The Canadian Radio-television and Telecommunications Commission (CRTC) today released its statistical and financial summaries for Canadian commercial radio. Revenues for Canadian radio stations in 2005 increased by 8.7% over 2004 to 1.3 billion dollars, while profits before interest and taxes (PBIT) experienced a growth of 23.8%, rising to nearly 277 million dollars in 2005. These growth rates exceeded the average rates recorded over the last five years, during which revenues increased at an average rate of 5.7%, and PBIT at 12.8%.

FM Radio

In 2005, FM radio revenues grew by 11.8% over 2004, from $923.7 million in 2004 to a little over one billion dollars. FM radio’s PBIT also increased by 19.6% over the same period, from $220.3 million to $263.3 million. Local advertising brought in $742.2 million in 2005 for FM radio stations, an increase of 7.9% over 2004, while revenues from national advertising increased by 22.5%, to $272 million.

Revenues for English-language FM radio stations rose by 11.3%, from $740.7 million in 2004 to $824.7 million in 2005, while those for French-language stations grew by 10.6%, rising from $172.5 million to $190.8 million. PBIT for English-language stations totalled $232.4 million in 2005, an increase of 20.9% over 2004, and that of French-language stations came just under $30 million – 8.2% higher than in 2004. Revenues for ethnic and Aboriginal FM radio stations went from $10.6 million in 2004 to $16.8 million in 2005, an increase of 59.6%, and their PBIT came in at a little over one million dollars in 2005, compared with $454.4 thousand the previous year.

AM Radio

While revenues for AM radio decreased by 0.7% year over year, from $302.5 million in 2004 to $300.4 million in 2005, due to a decline in local advertising revenues of 1.8% to $245 million, AM stations PBIT rose from $3.4 million in 2004 to $13.6 million in 2005.

Revenues for English-language radio stations rose by 2%, from $259.5 million in 2004 to $264.7 million in 2005, while those of French-language AM stations fell from $22.7 million to $17.5 million. PBIT for English-language AM stations increased to $17.2 million in 2005, compared with $5 million in 2004; however, French-language AM stations experienced higher losses before interest and taxes, from $4.7 million in 2004 to $6.2 million in 2005. Revenues for ethnic and Aboriginal AM stations decreased from $20.3 million in 2004 to $18.2 million in 2005, and their PBIT fell from $3.2 million to $2.6 million over the same period.

The Canadian commercial radio industry employed 9,303 people in 2005, compared with 9,071 in 2004, and paid a total of $542.4 million in salaries.

The data contained in this report were drawn from the financial statements of Canadian commercial radio undertakings. It is one in a series of reports on broadcasting published annually by the CRTC in order to inform interested parties of the current financial situation of this Canadian industry.

The CRTC

The CRTC is an independent, public authority which was established to sustain and promote Canadian culture and achieve key social and economic objectives by regulating and supervising Canadian broadcasting and telecommunications in the public interest. As an expert tribunal it takes into account the wants and needs of Canadian citizens, industries and various interest groups. The CRTC is governed by the Broadcasting Act and the Telecommunications Act and reports to Parliament through the Minister of Canadian Heritage.

Reference document: Commercial Private Radio – Statistical and Financial Summaries 2001 - 2005 [.htm] [.pdf] [.xls]

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Media Relations:
   MediaRelations@crtc.gc.ca, Tel: (819) 997-9403, Fax: (819) 997-4245

General Inquiries:
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-2782
   TDD - Toll-free # 1-877-909-2782

Copies of today’s documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the documentation centre of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2006-05-04

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