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

February 28, 2013, Ottawa

CBC/Radio-Canada today issued its third quarter financial report for 2012–2013. The report highlights significant business and financial developments occurring in the third quarter ended December 31, 2012.

“Over the past few months our commitment to accountability and transparency has been recognized — both through the grade of A we received from the Information Commissioner and our clean audit opinion from the Office of the Auditor General that confirms that there are no significant deficiencies in the Corporation’s systems and practices.,” says Hubert T. Lacroix, President and CEO. “We’re of course very pleased with the results, but recognize it means further hard work ahead as we continue to live up to these standards.”

Results for the quarter ended December 31, 2012

Net results before non-operating items for the quarter amounted to a loss of $10.7 million, compared to a loss of $1.7 million for the same period in 2011−2012. The operating loss is consistent with anticipated results and is more than offset by non-operating revenue from the sale of two transmission properties.

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Changes in revenue, expenses and funding were as follows:

  • Revenue decreased by $36.3 million (18.5 per cent) compared to the third quarter of 2011−2012. This primarily reflected the impact on advertising revenue of programming cuts following the federal budget reductions, and the absence of live professional hockey on Hockey Night in Canada (HNIC) because of the recent NHL lockout. The reduced LPIF contribution rate effective September 1, 2012 also contributed to this decrease.
  • Expenses were lower by $55.9 million (12.0 per cent) compared to the third quarter of 2011−2012. Most of the decrease was attributable to reduced spending on programming and operating cost reductions being implemented following the recent federal budget reductions, lower LPIF contributions and other financial pressures. Reduced spending on sports rights this quarter due to the NHL lockout also contributed to the decrease.
  • Government funding recognized for accounting purposes was $28.6 million (10.6 per cent) lower compared to the third quarter of 2011−2012, 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

This quarter we also continued to push boundaries with our Canadian programming, while producing content that resonates with our audiences. Télévision de Radio-Canada’s Unité 9 pulled in record audience numbers with an average of 1.5 million viewers every Tuesday night.

In prime time, CBC Television aired seven of the top 10 Canadian entertainment programs. CBC Television’s Dragons’ Den averaged an audience of 1.2 million Canadians every Sunday night and the Rick Mercer Report came very close to that mark with 1.0 million viewers each week.

Additionally, we are continuing to implement measures outlined in our financial plan to respond to the $200 million of financial pressures faced following reductions to annual appropriations and other new costs we expect to incur as we keep pace as a modern public broadcaster. In particular, we are reviewing our transmission and real estate portfolios to help increase self-generated revenue. Sales of properties in Calgary and Edmonton, made possible by relocating transmission facilities, have provided funding to reinvest in new capital equipment. We have also been successful in leasing out excess space in other owned properties.

At the end of October, Radio Canada International’s (RCI) shortwave transmission site in Sackville, New Brunswick officially closed after 67 years of operation. We have moved exclusively to online distribution of our RCI programming, ending shortwave transmission on June 24. However, our shortwave transmitters were still operating until October to meet our international broadcasting agreements.

For other examples of how we continue to implement a variety of initiatives that support our five-year strategic plan, Strategy 2015, despite resource constraints, consult the full report, which can be found here.

CBC/Radio-Canada’s 2012–2013 third 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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