Results for the third quarter ended December 31, 2013
“With successful efforts to reduce expenses across the Corporation achieved, we recognize that we are operating in an advertising market and industry dynamics that are in transition, which makes our outlook challenging. We are carefully assessing and optimizing our business model to address this shifting landscape.” said Suzanne Morris, Vice-President and Chief Financial Officer.
Changes in revenue, expense and funding were as follows:
CBC/Radio-Canada continued to achieve several tangible programming successes. Throughout the quarter, Olympic promotions and programming helped lay the groundwork for Canadians’ Olympic viewing experience. Preliminary results for Olympic programming engagement are positive with CBC/Radio-Canada and its partners reaching more than 32 million Canadians (or 95% of the population) with our Olympic coverage across French and English Platforms.
In television, market share for ICI Radio-Canada Télé grew compared to the same period in 2012, while CBC Television also achieved strong results with more than one million viewers for a number of prime-time programs. In Radio, both ICI Radio-Canada Première and Espace musique increased market share while CBC Radio One achieved its highest-ever fall survey audience share. Regionally, we continued delivering coverage and analysis of locally relevant events across Canada, while expanding our presence with new shows in several key regions. Digitally, CBC/Radio- Canada launched new initiatives, including Canada’s largest educational content website Curio, as well as several new web applications to enhance audience experience.
With success in many areas of the business, we are nonetheless projecting significant financial challenges starting in the next fiscal year, including a weaker advertising market across the industry, lower than expected advertising revenue performance and the loss of the NHL contract . These challenges are in addition to the last year of reductions announced from Federal Budget 2012, the elimination of the LPIF and another two-year government-wide salary inflation funding freeze.
“We face a number of challenges as we move forward,” said Hubert T. Lacroix, President and CEO. “Our financial picture is complex, but one thing is clear: as we craft our next strategic plan, we are focused on creating a long-term, sustainable business and financial model that will allow us to weather future storms”.
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 that will not require operating funds within one year and non-cash revenues that will not generate operating funds within one year. This measure is used by management to help monitor performance and balance the Corporation’s budget consistent with government funding methodology.
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 third quarter of 2013–2014 follows.
CBC/Radio-Canada’s 2013–2014 third 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.