CBC/Radio-Canada releases 2013–2014 second quarter financial report

November 29, 2013
  • Continued success towards Strategy 2015: Everyone, Every way.
  • Significant improvement in year over year results reflecting successful management of costs. Expenses decreased by 5.0% compared to the same quarter last year while maintaining consistent revenue levels.
  • Results under IFRS and on a Current Operating Basis improved over the same quarter last year.
  • CBC will continue to air Hockey Night in Canada on Saturday nights for at least the next four years through a partnership with Rogers.

CBC/Radio-Canada today issued its second quarter financial report for 2013–2014. The report highlights significant business and financial developments occurring in the second quarter ended September 30, 2013.

“I think this quarter demonstrates, through the richness of our content and diversity of programming, that we are continuing to find new ways to build our relationship with Canadians. And, subsequent to the quarter, we reached an agreement with Rogers under which CBC will broadcast HNIC on Saturday nights, including 320 hours of prime-time hockey and the Stanley Cup Final, for at least the next four years. This is about delivering what matters to Canadians, as individuals, as communities and as a nation as a whole.” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada.

Results for the second quarter ended September 30, 2013

“One year into our restructuring effort, we have managed to improve our results through sound management of expenses and are on track to meet our financial plan for the year” said Suzanne Morris, Vice-President and Chief Financial Officer.

Lower operating costs led to an improvement in results under IFRS relative to the same quarter last year. This improvement also contributed to higher results on a Current Operating Basis.

Changes in revenue, expenses and funding were as follows:

  • Revenue was consistent with the second quarter of last year. Advertising revenue increased by $2.7 million (5.3%) this quarter and other types of revenue were also higher. These increases were however offset by lower Local Programming Improvement Fund (LPIF) contributions as the Fund is phased-out.
  • Expenses were lower by $20.6 million (5.0%) compared to the same quarter last year because of lower operating costs and program spending reductions, reflecting restructuring initiatives implemented following Federal Budget 2012.
  • Government funding recognized for accounting purposes was $3.0 million (1.1%) lower in the current quarter when compared to the second quarter last year. This reflects the matching of operating funding recognized in income with our quarterly budgetary costs as well as the amortization of deferred capital funding. By year-end, parliamentary appropriations received are expected to decrease by $41.8 million when compared to 2012−2013 in accordance with federal budget announcements.

Business Update

Throughout the second quarter, we continued working to deliver on our mandate while being guided by our strategic plan, Strategy 2015: Everyone, Every way and supporting its three pillars: more Canadian, more regional and more digital.

Both networks aired a number of signature events over the course of the summer. The fall lineups on radio and television, launched between August and September, featured a combination of favorites and new programming. Success in providing more in-depth coverage to the regions was boosted through longer nightly news time slots in key markets, and teams on the ground in Calgary and the Eastern Townships provided robust local coverage of events that held national significance.

We continued to offer Canadians a wide variety of programming across both networks, as well as opportunities to engage with that programming through our apps and exclusive content found on our digital platforms. This quarter also saw the implementation of the CRTC new conditions of license, including the launch of CBC Radio One's Saskatoon Morning and the implementation of ads on CBC Radio 2 and Espace musique.

On November 25, 2013, the NHL announced that they have chosen Rogers as the rights holder for NHL hockey in Canada starting with the 2014-2015 hockey season. CBC will continue to air HNIC on Saturday nights for at least the next four years. This arrangement will ensure that Canadians continue to benefit from Hockey Night in Canada, a Canadian cultural icon, on a basis that is cost effective to the Corporation.

2012-2013 Annual Report

CBC/Radio-Canada's 2012-2013 Annual Report was tabled in Parliament on November 6, 2013. “In this year’s report, which marks the mid-way point of our five-year strategic plan 2015: Everyone, Every way, Canadians are provided with a clear picture not only of our finances, but of how we’ve continued to build on our promise to be become more Canadian, more regional, and more digital,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada.

Reconciliation of Results on a Current Operating Basis

CBC/Radio-Canada defines Results on a Current Operating Basis as Net Results under IFRS, less the adjustments for non-cash expenses and revenue which neither generate nor require operating funds within one year. This measure is used by management to help monitor ongoing performance and to balance the Corporation’s budget, consistent with government funding for current expenditures.

While this measure does not have a standard meaning under IFRS and is not likely comparable with measures presented by private companies, the Corporation believes it provides useful additional information to readers about the Corporation’s performance.

A reconciliation between Results on a Current Operating Basis and Net Results under IFRS for the second quarter of 2013–2014 follows.

CBC/Radio-Canada’s 2013–2014 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.

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