CBC/Radio-Canada today issued its second quarter financial report for 2012–2013. The report highlights significant business and financial developments occurring between July 1 and September 30, 2012.
Results for the quarter ended September 30, 2012
This quarter, CBC/Radio-Canada continued to implement its plans to address the reduction of $115 million to its annual appropriation phased in over three years, as set out in Federal Budget 2012.
“These measures have started to have an impact on the Corporation’s expenses. The decommissioning of our analogue over-the-air television transmission network following the July 31, 2012 shut-down was part of these measures and will result in approximately $10 million in cost savings per year,” says Suzanne Morris, Vice-President and Chief Financial Officer.
Also during the second quarter, CBC/Radio-Canada announced its plan to deal with the CRTC’s decision to phase out the Local Programming Improvement Fund (LPIF) over three years. “The Corporation has decided to protect as much as possible the initiatives created under the LPIF. However, this drop in funding will affect regional and other priorities, such as our plans for four new local CBC radio stations and some of Radio-Canada’s regional non-news programming,” says Hubert T. Lacroix, President and CEO.
Net results before non-operating items for the quarter amounted to $11.5 million, a decrease of $18.0 million compared to the second quarter of the previous year. This movement reflects the following changes in revenue, funding and expenses:
CBC/Radio-Canada’s licence renewal hearings with the CRTC began on November 19. It’s been 13 years since the Corporation’s licences were last renewed.
“We’re asking the CRTC for two things: 1) a modern regulatory framework that will enable us to implement our strategy across all platforms and allow it to evolve with audiences, with technology and with our changing environment; and 2) an opportunity to generate new revenue to meet the significant financial challenges presented by our current operating environment,” adds Lacroix.
These two elements are critical to preserving the priorities of 2015: Everyone, Every way, the Corporation’s five-year strategy. “Despite the reduction to our appropriation and the phasing out of the LPIF, we remain focused on Strategy 2015. The results outlined in our Q2 report are examples of our continued commitment to delivering the best programs and experiences to Canadians”, says Lacroix.
CBC/Radio-Canada’s 2012–2013 second quarter financial report can be found here.
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.