CBC/Radio-Canada 2016-2017 first quarterly report now available online

August 30, 2016, Ottawa

CBC/Radio-Canada today made its first quarterly report for 2016-2017 available online.

“Today, already into year three of Strategy 2020, we have every reason to move ahead boldly as we strengthen the public broadcaster’s role in this ‘always on’, global, digital space,” said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada.

FINANCIAL REPORT FOR THE FIRST QUARTER-ENDED JUNE 30, 2016

Q1 Results

  • Our revenue decreased by $3.9 million (-3.3%), primarily from continued weakness in the conventional television advertising market. This downward revenue pressure was mitigated somewhat by growth in digital advertising. In addition, our subscriber revenue was almost flat.
  • Our expenses were down by $10.5 million (-2.9%) reflecting a decrease in our pension expense due to updated actuarial assumptions; and the overall lower cost of programming. Although expenses were lower this quarter, we are developing content using our new government funding. These costs will be reflected as expenses in future periods when programs are broadcast.
  • This quarter, we drew down more funding to meet our working capital requirements. In the same period last year, our drawdowns of funding were lower than usual due to a higher starting cash position which temporarily delayed our need of drawdowns.

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As we continue to be guided by Strategy 2020, we are aiming to put the public broadcaster on strong, stable financial footing, despite an unpredictable media environment.

“This quarter we saw some growth in our digital advertising which, combined with stability in our subscriptions, helped soften the impact from conventional television advertising headwinds,” said Judith Purves, Chief Financial Officer for CBC/Radio-Canada.

Q1 Business Update

  • The Corporation’s work to deliver more content on more screens continues. In June, Canadians saw a greater emphasis on the multiplatform production of continuous news, as well as impact and original journalism, during CBC and Radio-Canada coverage of the Fort McMurray fire. More apps were made available this quarter – including iOS and android apps for both CBC Music and ICI Musique. In addition, we further accelerated the development of our radio streaming service, Première PLUS.
  • As the official Canadian Olympic broadcaster, preparations for Rio 2016 were also front and centre this quarter. For quick facts, please consult our Q1 infographic.
  • CBC/Radio-Canada wants to be the public space where Canadians connect to celebrate Canada 2017, the 150th anniversary of Confederation. On June 28, we launched "What's Your Story?", a call to action inviting the public to demonstrate their Canadian pride using #CBC2017.This activation is the first of many leading up to the celebrations.

For more information, please read our first quarterly report for 2016-2017.

Reconciliation of Q1 results under IFRS to 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 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.

About CBC/Radio-Canada

CBC/Radio-Canada is Canada’s national public broadcaster and one of its largest cultural institutions. We are Canada’s trusted source of news, information and Canadian entertainment. Deeply rooted in communities all across the country, CBC/Radio-Canada offers diverse content in English, French and eight Aboriginal languages. We also provide international news and information from a uniquely Canadian perspective.

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