CBC/Radio-Canada releases 2012–2013 second quarter financial report

November 29, 2012, Ottawa

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.

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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:

  • Revenue decreased by $1.1 million (0.9 per cent) compared to the same period in 2011−2012. This primarily reflects the reduction of the LPIF contribution rate effective September 1, 2012 as well as other non-recurring items. These decreases are partly offset by higher specialty services revenue.
  • Expenses were lower by $4.7 million (1.2 per cent) compared to the second quarter of last year. Programming costs were lower in English, French and specialty services. Overall reductions in spending following Federal Budget 2012 also contributed to this decrease.
  • In the second quarter, government funding recognized for accounting purposes was $21.6 million lower (7.4 per cent) compared to the second quarter of last year, reflecting the matching of funding to quarterly budgeted costs. Government appropriations for 2012−2013 are expected to be lower than the previous year by $27.8 million as a result of Federal Budget 2012 reductions.

Business update

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.

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.

For additional information, please contact:
  • Angus McKinnon
    Director, Communications Services and Corporate Spokesperson
    tel. 613-288-6235
    cel. 613-296-1057
    angus.mckinnon@cbc.ca

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