“This quarter, we continue to improve our financial sustainability, in a fast-paced and changing environment, affected by the industry-wide softening of advertising. We have done so by continuing to lower our expenses through cost-reduction initiatives. We will, however, be keeping a close eye on our financial position over the next few weeks and months, particularly given the current advertising market,” explains Judith Purves, Executive Vice-President and Chief Financial Officer.
It’s been a year since the launch of A space for us all, the strategy that will guide Canada’s national public broadcaster over the next few years. This report focuses particularly on initiatives where digital and multiplatform programming allowed us to offer more in-depth content and a more interactive experience to our audiences. By doing so, it highlights some of our most innovative and creative multiplatform projects for the quarter, be they related to arts and music, literature, documentaries or Canada’s Aboriginal community. Our report also covers how we are working to fulfil our commitments under A space for us allto find further cost efficiencies, while positioning ourselves to become a more modern public broadcaster.
“We’ve had to make some difficult decisions over the last few years, but for the first time since 2009, we’ve been able to allocate more resources to our priority: distinctive content that Canadians can access when, where and how they want it,” says Hubert T. Lacroix, President and CEO.
For more information, please read our first quarterly report for 2015-2016.
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 regularly by management to help monitor performance and balance the Corporation’s budget consistent with parliamentary appropriations. We believe this measure provides useful complementary information to readers, while recognizing 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 year. Adjustments are also made for other non-cash items such as the depreciation, amortization and decommissioning of capital assets; the amortization of deferred capital funding; and non-budgetary annual leave. 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.
Results on a Current Operating Basis amounted to a loss of $52.7 million this quarter, a decrease of $45.2 million when compared to the same period last year. This decrease primarily reflected lower government funding recognized in income this quarter, consistent with the delay in drawdowns of operating appropriations until later in the year. By year-end, we expect our Results on a Current Operating Basis to be closer to breakeven as we drawdown all government funding that will remain unchanged when compared to last year.
In our next quarterly financial report, we’ll be examining the results of our coverage of the Toronto 2015 Pan-American Games. CBC/Radio-Canada over-delivered on our commitments as the domestic rights holder, we increased our coverage on CBC Television twice as a result of the incredible response that we saw from our audience. In addition, we engaged audiences through mobile and digital platforms, including new CBC Sports app, and social media.
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 strategy to transform the public broadcaster, and ensure that it continues to fulfill its mandate for Canadians, now and for future generations. Through to 2020, the Corporation 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.