CBC/Radio-Canada releases its first quarterly financial report

August 29, 2011

CBC/Radio-Canada today reported its consolidated financial results for the first quarter of fiscal year 2011–2012. “Transparency and accountability are core values that have always guided, and will continue to guide, the way we manage public funds,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. “Today, we’re going one step further by giving Canadians even more information about our finances and our progress against key objectives.”

This report coincides with the implementation of the Corporation’s new strategic plan, 2015: Everyone, Every way, providing Canadians with a snapshot of what was accomplished during the first quarter. Corporate highlights include the following:

  • Engaging Canadians – Close to two million Canadians used CBC/Radio-Canada’s Vote Compass tool to explore their engagement in the political process.
  • Investing in digital platforms – Espace.mu online music website was launched on June 13th, generating over a million audio streams since the launch. The website offers listeners the largest repertoire of French music selection on the Internet
  • Introduce or improve local services to more than six million underserved Canadians over the next five years – Details were announced for initiatives in Victoria, Kelowna, Rimouski and Kamloops. New weekend news programs on television and expanded weekend news programming on radio and online will also be launched in Toronto and in Calgary.

“CBC/Radio-Canada saw growth in its revenues in the first quarter,” said Suzanne Morris, Vice-President and CFO of CBC/Radio-Canada. “This is due in large part to strong advertising results from the NHL hockey playoffs, higher digital revenues as planned under our 2015 Strategy, an increased ownership position in ARTV, and a higher number of stations eligible for Local Programming Improvement Fund contributions.”

The Corporation’s operating expenses also increased as it provided coverage of the federal election and royal visit during the quarter, increased its investment in ARTV, and enhanced its digital programming. The Corporation also accelerated depreciation costs on its analogue TV assets.

Other financial highlights for the first quarter include the following:

  • The quarterly net result before non-operating items was a loss of $12.5 million, due to non-cash items, comparable to a loss of $10.2 million in the same period last year. This is consistent with planned results.
  • Quarter-over-quarter government funding recognized for accounting purposes was $9.6 million (3.6 per cent) higher, reflecting the matching of funding to quarterly budgeted costs. Government funding for the 2011–2012 fiscal year is not expected to increase from the previous year.
  • Non-operating items increased by $43 million largely from a non-cash gain, reflecting the change in CBC/Radio-Canada's ownership position following the merger of Canada's two satellite radio providers, Sirius Canada and the parent company of XM Canada.

CBC/Radio-Canada adopted International Financial Reporting Standards (“IFRS”). The Corporation’s unaudited consolidated financial statements for the three-month period ended June 30, 2011 have therefore been prepared in accordance with IFRS.

CBC/Radio-Canada’s first quarterly report, along with its 2010–2011 Annual Report and other reports to Parliament, is available here.

About CBC/Radio-Canada

CBC/Radio-Canada is Canada's national public broadcaster and one of its largest cultural institutions. The Corporation is a leader in reaching Canadians on new platforms and delivers a comprehensive range of radio, television, Internet, and satellite-based services. Deeply rooted in the regions, CBC/Radio-Canada is the only domestic broadcaster to offer diverse regional and cultural perspectives in English, French and eight Aboriginal languages, plus seven languages for international audiences. In 2011, CBC/Radio-Canada is celebrating 75 years of serving Canadians and being at the centre of the democratic, social and cultural life of Canada.

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