News release

July 5, 2006

The CRTC releases financial results for the
Canadian broadcast distribution industry

OTTAWA-GATINEAU — The Canadian Radio-television and Telecommunications Commission (CRTC) today released the Canadian broadcast distribution industry’s statistical and financial summaries for the period 2001 - 2005. Overall, from 2004 to 2005, revenues as well as number of subscribers remained more or less constant for Class 1 cable carriers. On the other hand, Direct-to-Home (DTH) satellite distribution undertakings and Multipoint Distribution System (MDS) undertakings experienced significant growth in terms of subscription revenues and number of subscribers.

Cable

In 2005, total revenues for the cable industry climbed to $4.575 billion, compared with $4.555 billion in 2004. Profits before interest and taxes (PBIT) totalled $926.2 million in 2005, down from $1.1 billion in 2004. This decrease is largely due to the 7.1% increase in total expenses over the same period. The number of basic service subscribers decreased by 0.4%, from 6,641,569 in 2004 to 6,617,378 in 2005.

DTH and MDS

From 2004 to 2005, the number of subscribers to basic DTH and MDS services grew by 7.3%, going from 2,316,714 to 2,486,372. Total revenues from basic and non-basic services grew by 8.1%; from $1.4 billion in 2004 to $1.5 billion in 2005. For the first time, DTH and MDS undertakings recorded PBIT – $44.9 million in 2005 – compared with losses before interest and taxes in previous years.

Contributions to Canadian programming

In 2005, Canadian cable, DTH and MDS undertakings spent $247.3 million for the creation and production of Canadian programming. Of that total, $125.2 million went to the Canadian Television Fund, and $29.7 million to independent funds.

Contributions from cable undertakings rose to $176.5 million in 2005, compared with $173.3 million in 2004, an increase of 1.9%. Contributions from DTH and MDS undertakings went from $66.6 million in 2004 to $70.8 million in 2005, an increase of 6.3%.

Background

The data contained in this report were drawn from the financial statements of Canadian Class 1 cable distribution undertakings and DTH and MDS undertakings. This 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: Broadcast Distribution – Class 1 – 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: 2006-07-05

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