Canadian cable and satellite profits climb
July 15, 2011
The Canadian Radio-television and Telecommunications Commission (CRTC) has released statistical and financial information on Canadian broadcasting distribution companies. For the year ending on August 31st 2010, this sector of the broadcasting industry experienced strong growth as the combined revenues for cable, satellite and multipoint distribution companies rose from $11.4 billion to $12.5 billion.
Total revenues generated by cable companies increased by 9.7 per cent in 2010, from $9.2 billion to $10.1 billion, while operating expenses went up by 9 per cent, from $5.1 billion to $5.5 billion. As a result, cable companies reported profits before interest and taxes (PBIT) of $2.5 billion and a PBIT margin of 25.3 per cent. These were both higher than the 2009 results, which came in at $2.3 billion and 25.1 per cent, respectively.
The number of Canadian households that obtained basic television service from a cable company rose by 2.2 per cent to reach 8.3 million subscribers.
In 2010, cable companies employed 24,076 people and spent $1.8 billion on salaries, compared to employing 22,716 and spending $1.7 billion on salaries the previous year.
Total revenues for satellite and multipoint distribution companies increased from $2.2 billion in 2009 to $2.4 billion in 2010˜an increase of 8.9 per cent from the previous year. In addition, operating expenses went up by 4 per cent, from $1.75 billion to $1.82 billion.
The number of Canadian households that obtained basic television service from satellite or multipoint distribution companies increased by 3.7 per cent in 2010 to reach 2.9 million.