CBC/Radio-Canada's first 2017-2018 quarterly report now available online

August 29, 2017, Ottawa

CBC/Radio-Canada made its first quarterly report for 2017-2018 available online today.

"Most notably, this quarter, from coast to coast to coast, we experienced Canada 150 alongside Canadians," said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. "Whether at local community events, the Canada Day primetime broadcast, the special broadcast of the Governor General’s Performing Arts Awards Gala, news coverage leading up to and on Canada Day, and more than a dozen live shows across Canada on July 1, we created opportunities to mark this special moment in our country’s history together.”

FINANCIAL REPORT FOR THE FIRST QUARTER ENDED JUNE 30, 2017

Q1 Financial Highlights

  • Our revenue decreased by 1.2% this quarter, mainly due to lower content sales and subscription revenue on our specialty platforms. These decreases were partly mitigated by growth in our advertising revenue on both our conventional television and digital platforms.
  • The 7.0% increase in government funding this quarter reflects higher funding for 2017-2018 as announced by the federal government in March 2016.
  • Our expenses were up by 11.6% as we continue to broadcast more original content on our platforms. In particular, we aired more original Arts and Entertainment programming, helped promote Canada 150, and continued building our digital capabilities.
  • Our positive results this quarter also reflect a $54.5 million non-operating gain from the sale of our interest in Sirius XM Canada Holdings Inc. (SiriusXM). Proceeds from the sale of SiriusXM will be used to support our redevelopment of Maison de Radio-Canada and ongoing operations.

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“This quarter, we continued to invest in more original programming thanks to the federal government’s reinvestment,” said Judith Purves, CFO of CBC/Radio-Canada. “In addition, we continue to make new investments in technology, including our digital capabilities.”

Q1 Business Update

There was a strong focus this quarter on programming and activities to mark Canada’s 150th anniversary. This culminated in a dynamic July 1 coast-to-coast celebration, during which 10.9 million Canadians (31% of the population) tuned in to our Canada 150 programming coverage on CBC/Radio-Canada. We reached even more Canadians on the radio, via our digital platforms, and at local events, demonstrating, once again, that we are where Canadians turn for the moments that matter.

We continue to explore the opportunities around digital content. This quarter we took a digital-first approach to releasing new content (trailer for Alias Grace; episode 3X01 of Still Standing via Over-the-Top); to connect with younger audiences via exclusive Facebook or Snapchat-hosted current affairs programming (La vérif); and to revamping old favourites via a new sports-specific web platform (Podium). These highlights helped drive our progress towards meeting our ‘digital audience reach’ Performance Indicators for Strategy 2020. This quarter, we reached 17.9 million digital users per month, which is extremely close to our 2020 target of 18 million.

Meanwhile, we began the mass digitization of our extensive archives. This will ensure the cultural legacy that we hold is both protected and preserved, and available to be shared with generations to come.

CBC/Radio-Canada’s Quarterly report is available on our corporate website in the Financial Reports section.

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.

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