CBC/Radio-Canada releases its third quarter financial report

February 29, 2012

CBC/Radio-Canada today reported its consolidated financial results for the third quarter of fiscal year 2011–2012.

"The quarterly reports provide us with an excellent opportunity to highlight for Canadians how we’re doing in terms of both our finances and the promises we made in Strategy 2015: Everyone Every way," said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada.

The net results for the quarter were $7.8 million, an increase of $3.5 million over the third quarter of the previous fiscal year. Net results are expected to be in line with plans for the year.

"Commercial revenues for the third quarter remained stable compared to the same period in 2010-2011," said Suzanne Morris, Vice-President and CFO of CBC/Radio-Canada. "Advertising revenues increased in the third quarter of 2011-2012 compared to the same three months in 2010-2011 due mostly to an increase in digital advertising revenues. However, this was partly offset by a general softening of the market for conventional television." While CBC/Radio-Canada is currently on track to meet its overall advertising revenue targets for the year, the Corporation is closely monitoring its results and forecasts in light of the current economic uncertainty which started in the second quarter and is continuing.

Third Quarter Financial Highlights Net Results

Three months ended December 31 (in thousands of dollars)

2011 2010 $ change % change
Revenues 195,967 195,938 29 0.0
Expenses (467,541) (475,881) 8,340 1.8
Government Funding 269,855 284,159 (14,304) (5.0)
Net results before non-operating items (1,719) 4,216 (5,935) (140.8)
Non-operating items 9,563 88 3,475 N/M
Net results for the period 7,844 4,304 3,540 82.2

Nine months ended December 31 (in thousands of dollars)

2011 2010 $ change % change

N/M - Not Meaningful

Revenues 504,188 485,396 18,792 3.9
Expenses (1,328,738) (1,300,615) (28,123) (2.2)
Government Funding 838,745 854,145 (15,400) (1.8)
Net results before non-operating items 14,195 38,926 (24,731) 63.50
Non-operating items 38,988 (416) 39,404 N/M
Net results for the period 53,183 38,510 14,673 38.1

Expenses in the quarter were consistent with the prior year. The decrease of $8.3 million quarter over quarter was due to a non-recurring item in the third quarter last year from CBC/Radio-Canada’s investment in Sirius satellite radio.

Government funding recognized for accounting purposes in the quarter reflects the matching of funding to quarterly budgeted costs. Government appropriations for the 2011-2012 fiscal year are expected to be $2.8 million lower than the previous year due to a budget reduction introduced in the 2007 federal budget.

Non-operating items yielded a non-recurring gain of $9.6 million in the third quarter of 2011-2012 mostly related to the proceeds generated from the sale of the Brossard AM transmitter site in October 2011.

"Looking ahead to the next quarter, the results of the government-wide Deficit Reduction Action Plan (DRAP) review are expected in March as part of the Federal Budget 2012," says Morris. "CBC/Radio-Canada was among 67 organizations asked to prepare two proposals, one for a five per cent reduction and the other for a ten per cent reduction in operating appropriations, over three years."

CBC/Radio-Canada’s third quarter financial report, along with its 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.

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