CRTC releases 2015 financial results for Canadian radio stations

Radio revenues have remained stable over the last five years

OTTAWA and GATINEAU, April 25, 2016 /CNW/ - The Canadian Radio-television and Telecommunications Commission (CRTC) today released statistical and financial information for commercial radio stations in Canada, as well as those operated by the Canadian Broadcasting Corporation (CBC).

A total of 704 commercial radio stations offered a variety of programming to Canadians during the broadcast year ending August 31, 2015. These stations employed over 9,500 people (down 3.4% from 2014), and supported established and emerging Canadian artists through, notably, financial contributions to funds dedicated to Canadian content development, as well as to a large variety of local initiatives, charities and events.

Total revenues for commercial radio stations were $1.6 billion in 2015, down 0.7% (-$11.6 million) compared to 2014. The bulk of commercial radio revenues came from local and national advertising, which amounted to $1.58 billion in 2015. Advertising revenues for the radio sector have remained relatively stable since 2011.

In the past year, commercial stations have decreased their expenditures by $14.2 million for a total of $1.3 billion. As a result, profits before interest and taxes (PBIT) increased from $298.2 million to $303.4 million, resulting in a slight increase in the PBIT margin, which went from 18.5% to 18.9%.

The 23 third-language radio stations operating across the country generated $46.7 million in revenues in 2015, up 1.5% from 2014. Ethnic radio services' total revenues have recorded an average 1.3% growth per year since 2011, while French- and English-language services have reported declines of 0.1% and 0.3% a year, on average, over that period.

The 2015 broadcast year marked the second year during which the CBC could sell advertising on its Ici Musique and CBC Radio 2 services. Advertising revenues totaled $1.4 million, up 27.2% from 2014. Nonetheless, total revenues for CBC's stations decreased by 3.9% to $276.5 million in 2015 as parliamentary appropriations allocated to the public broadcaster's radio services declined by 3.4% from the previous year.

Each year, the CRTC compiles financial data on the Canadian broadcasting industry, including these radio financial summaries. In an effort to increase Canadian's access to relevant information, this year's publication includes statistical and financial information of 14 additional radio markets, three of which are in the Atlantic provinces, four in Ontario, six in the Prairies and one in British Columbia. This brings to 29 the total number of radio markets for which the Commission releases financial data.

The CRTC will be releasing the 2015 financial results for local television stations, specialty, pay, pay-per-view and video-on-demand television services, and television service providers in the coming months. Following the publication of these reports, the CRTC will issue its annual Communications Monitoring Report.

These annual reports allow Canadians to stay informed about the state of Canada's communications industry, while assisting them with their participation in the CRTC's public consultations.

Quick facts

AM and FM radio

• Revenues from the sale of local advertising decreased by 2.2% from $1.09 billion in 2014 to $1.07 billion in 2015, while national advertising sales increased by 2.3% from $497.4 million to $508.8 million.
• Total expenses in the commercial radio sector were $1.3 billion in 2015, reporting a 1.1% decrease relative to 2014.
• Despite the year-over-year decrease, total expenses remained almost unchanged from 2011. Programming expenditures increased by $30.5 million over the past 5 years, offsetting most of the declines in non-programming expenses.
• The average PBIT margin has remained in the 18-20% range for the last five years.

FM Radio

• The addition of 13 new FM radio stations in 2015 brought the number of stations operating on the FM band to 580.
• FM stations generated revenues of $1.317 billion in 2015, down $6.7 million from the previous year.
• Revenues for English-language FM radio stations decreased slightly by 0.3% from $1.043 billion in 2014 to $1.040 billion in 2015.
• Revenues for French-language FM stations decreased by 1.8%, from $259.2 million in 2014 to $254.7 million in 2015.
• Revenues for ethnic FM stations increased by 2.1% for a total of $21.8 million.
• AM Radio
• There were 124 AM stations in Canada in 2015. Total revenues for AM radio stations decreased by 1.7%, from $291 million in 2014 to $286 million in 2015.

Radio markets

• Statistics are provided for a total of 29 radio markets, including 14 markets that were added to this year's publication: Grande Prairie, Kelowna, Kingston, Lethbridge, Medicine Hat, Moncton, Peterborough, Red Deer, Regina, Saint John, Saskatoon, St. John's, Sudbury and Timmins.
• Radio services in Ontario and the Prairies accounted for 63% of the total revenues generated in the commercial radio industry.
• Advertising revenues, which accounted for 98% of total revenues in 2015, were down in the Atlantic provinces (-1.4%), Quebec (-2.2%), Ontario (-0.6%) and British Columbia and the Territories (-1.1%). They were unchanged in the Prairies provinces.
• Canadian Broadcasting Corporation radio services
• CBC radio services operating under the Ici Musique and Radio 2 brands generated $1.4 million in advertising sales.
• Total revenues for the 69 radio services operated by CBC decreased by 3.9%, to $276.5 million in 2015 as a result of a $10.4 million decline in parliamentary appropriations.
• Expenses incurred by the public broadcaster's stations amounted to $261.9 million in 2015, a decrease of 4.7% from the previous year.

Related links

Commercial radio – Statistical and Financial Summaries 2011-2015
Commercial Radio Highlights
Summary for the Calgary market
Summary for the Edmonton market
Summary for the Grande Prairie market
Summary for the Halifax market
Summary for the Hamilton market 
Summary for the Kelowna market 
Summary for the Kingston market 
Summary for the Kitchener/Waterloo market 
Summary for the Lethbridge market 
Summary for the London market 
Summary for the Medicine Hat market 
Summary for the Moncton market 
Summary for the Montréal market
Summary for the Ottawa-Gatineau market 
Summary for the Peterborough market 
Summary for the Québec City market 
Summary for the Red Deer market 
Summary for the Regina market 
Summary for the Saint-John market 
Summary for the Saskatoon market 
Summary for the St. John's market 
Summary for the St. Catharines/Niagara market 
Summary for the Sudbury market 
Summary for the Timmins market 
Summary for the Toronto market 
Summary for the Vancouver market
Summary for the Victoria market 
Summaries for the Windsor and Oshawa markets 
Summary for the Winnipeg market

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SOURCE Canadian Radio-television and Telecommunications Commission

Media Relations, [phone]; General Inquiries, [phone], Toll-free 1 (877) 249-CRTC (2782), TTY [phone],