CBC/Radio-Canada goes the distance in 2013-2014 Annual Report

October 9, 2014

Annual Report looks to the future and chronicles a year of change for the public broadcaster

Key highlights:

  • Year-end results included higher revenue of $121.8 million, largely from our coverage of the Sochi 2014 Olympic Winter Games and from broadcasting a full season of Hockey Night in Canada.
  • Overall expenses were comparable to last year through cost reduction initiatives, while incurring additional production costs to produce the events mentioned above.
  • Government funding recognized in income for accounting purposes was $64.0 million lower this year. Results on a current operating basis were $46.4 million, which excludes $58.8 million of non-cash pension expenses.

On Friday October 3, 2014, a detailed account of the successes, challenges and future opportunities of Canada’s public broadcaster was released to Canadians following the tabling in Parliament of the CBC/Radio-Canada 2013-2014 Annual Report. The report is available in full on the CBC/Radio-Canada corporate website, cbc.radio-canada.ca.

“Through this Annual Report, we continue to engage with Canadians about your public broadcaster: past, present and future,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. “While we do face challenges, the transformation we are undergoing through our new strategy, A space for us all, is putting us on the road to a stronger, more relevant and more fiscally secure tomorrow.”

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Changes in net results under IFRS and on a Current Operating Basis were primarily due to the following:

  • Revenue increased by $121.8 million, largely due to higher advertising revenue from our coverage of the Sochi 2014 Olympic Winter Games. This year’s revenue also included advertising from broadcasting a complete season of Hockey Night in Canada (HNIC) after last year’s NHL lockout. This revenue increase was somewhat offset by a weaker advertising market.
  • Our overall expenses were comparable to last year while producing a larger number of significant events, including the full season of HNIC and the Sochi 2014 Winter Olympics. This was possible because of our successful cost management initiatives.
  • Government funding recognized for accounting purposes was $64.0 million lower this year, reflecting decreases in both government appropriations received this year, and less capital funding recognized in income following the shutdown of our analogue TV last year.
  • Results on a Current Operating Basis for the year were $46.4 million. This excludes items that do not generate or require funds from operations, the most significant being $58.8 million charged for non-cash pension expense. Further details reconciling net results to Results on a Current Operating Basis are provided below.

In addition to providing a full financial picture and programming highlights of the previous year, the report details, among other successes, the Corporation’s coverage of the Sochi 2014 Olympic Winter Games where CBC/Radio-Canada and its partners reached more than 33 million Canadians, including 11 million through our digital offerings.

Canadians wishing to learn more about A space for us all can visit the Strategy’s dedicated web portal housed here, or can visit cbc.radio-canada.ca.

Reconciliation of Results on a Current Operating Basis

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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. We believe this measure provides useful complementary information to readers, while we recognize that it does not have a standard meaning under IFRS and will not likely be comparable to measures presented by other companies.

Adjustments include the elimination of non-cash pension and other employee future benefit costs, which represent the excess of the IFRS expense over the actual cash contribution for the period. Adjustments are also made for the depreciation and amortization of capital assets and the amortization of deferred capital funding because these are non-cash items. Other less significant items not funded or generating funds in the current period, primarily employee benefit–related, are adjusted for in the reconciliation to Results on a Current Operating Basis.

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.

A space for us all is CBC/Radio-Canada’s new strategy to modernize the public broadcaster and ensure that it continues to fulfill its mandate for Canadians and for future generations. Through to 2020, it will increase its investment in prime time television programming, and continue to create radio programs of the highest quality, while promoting the development of digital and mobile platforms and content.

For more information about the MRC project, please visit this page.

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