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News releaseApril 8th, 2004 The CRTC releases its annual report on broadcast distribution undertakings: Their profitability improvesOTTAWA-GATINEAU - The Canadian Radio-television and Telecommunications Commission released statistical and financial summaries today for Canadian broadcast distribution undertakings (BDU's) for the period from 1999 to 2003. The financial data for the distribution industry, which includes cable television, Direct-to-Home (DTH) distribution and Multipoint Distribution Systems (MDS), show an increase in revenues for the year 2003. CableProfitability in the cable industry grew by 15.8% from 2002 to 2003, with profits before interest and taxes (PBIT) rising from nearly $600.7 million to a little over $695.5 million. Over the period from 1999 to 2003, however, PBIT grew by only 4.3% as a result of decreases in 2000 and 2001. Cable distribution undertakings earned revenues of nearly $4.2 billion in 2003, an increase of 7.9% over the 2002 figure of just under $3.9 billion. The increase over the 1999 figure of just over $3 billion was 37.8%; meanwhile, over the same five-year period, operating costs rose by 33.3%, and gross fixed asset expenditures, including depreciation, rose by 56.2%. The number of basic-tier cable subscribers, however, dropped from 7,014,460 in 2002 to 6,867,837 in 2003, a decrease of 2.1%. DTH and MDSAlthough the MDS sector showed a revenue drop of 13.7% in 2003 and remains in a deficit position, the combined revenues of DTH and MDS saw impressive growth of 27.2% between 2002 and 2003, rising from nearly $945.8 million to $1.2 billion. Five years ago, in 1999, revenues for this industry were only $165.6 million. Improvement between 2002 and 2003 was also seen in the form of reduced losses before interest and taxes, which dropped from $246.4 million to $110.6 million. From 2002 to 2003, the number of basic-tier subscribers to DTH and MSD increased by 9.2%, from 2,016,615 to 2,201,688. By comparison, in 1999 there were 550,927 subscribers. Contributions to the creation and production of Canadian programmingIn 2003, 143 BDU's made nearly $135.7 million in contributions to the creation and production of Canadian programming. This money was shared between the Canadian Television Fund, which received $109.2 million, and independent funds, which received $26.5 million. The 2003 contributions of BDU's were 5.7% higher than those of 2002, which totalled close to $128.4 million. BackgroundThe data used in this report were drawn from the annual reports and financial statements of Canadian BDU's, specifically Class 1 and 2 cable systems, DTH and MDS. In order to preserve the confidentiality of DTH financial data, the CRTC must combine them with those of MDS. It should be noted that MDS financial results show operating losses, as they have for a number of years. This report is part of the CRTC's ongoing efforts to evaluate, along with other factors, the impact of its regulations on the broadcasting industry. The Commission produces other reports as well, such as the Broadcasting Policy Monitoring Report, which tracks significant trends in the Canadian broadcasting system. The Canadian Radio-television and Telecommunications Commission is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada. Reference document: Broadcast Distribution - Class 1 and 2 - Statistical and Financial Summaries - 1999 - 2003 [.htm] [.pdf] [.xls] - 30 - Media Relations: General Inquiries: Copies of today's documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the public examination room of any CRTC office. These documents are available in alternative format upon request.
Date Modified: 2004-04-08 |
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