CBC/Radio-Canada 2017-2018 second quarterly report now available online

November 28, 2017

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

"As Canada’s public broadcaster, we want to better identify what our audiences want and like. This quarter, with the public research space, we tested a new way to allow them to preview our digital products," said Hubert T. Lacroix, President and CEO of CBC/Radio-Canada. "We also want to keep Canadians up to date on what we’re doing. New this year to our Annual Public Meeting, we integrated Facebook Live streaming throughout the event and we went directly to young Canadians by partnering with the University of Ottawa.”

FINANCIAL REPORT FOR THE SECOND QUARTER ENDED SEPTEMBER 30, 2017

Q2 Financial Highlights

  • Our revenue decreased by 32.6% this quarter, primarily because last year’s amount includes revenue from broadcasting the Rio 2016 Olympic Games. This overall decrease was partly offset by higher revenue from our ongoing activities mostly driven by strong audience performance on Radio-Canada and growth in our digital advertising.
  • The 14.2% increase in government funding this quarter reflects higher funding for 2017-2018 as announced by the federal government in March 2016.
  • Our expenses were down by 9.5% primarily because last year’s amount includes event costs for broadcasting the Rio 2016 Olympic Games. This decrease was partly offset by an increase in our ongoing expenses as we aired more original Arts and Entertainment programming, covered Canada 150 events, and continued investing in our digital capabilities and local services.
  • Our non-operating items this quarter reflect a non-operating loss from the disposal of the Maison de Radio-Canada premises in Montreal.

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“This quarter, we completed the sale of our existing Maison de Radio-Canada (MRC)’s premises and entered into an agreement for the construction and lease of the new MRC,” said Judith Purves, CFO of CBC/Radio-Canada. “These transactions bring several benefits, notably the opportunity to create a new work environment with optimal facilities at a stable annual cost.”

Q2 Business Update

There was a strong focus this quarter on innovation across all of our platforms. From CBC and Radio-Canada’s continuing redevelopment of their flagship news programs, The National and Le Téléjournal 22h, to experimenting with new formats to tell the unique story of Raïf Badawi, an activist blogger who has been imprisoned in Saudi Arabia.

Focusing on audience needs also continues to be a priority, as CBC launched an engaged insight community called Your CBC Say (yourCBCsay.cbc.ca), which invites viewers to test new projects. We also continued to roll-out a redesign for cbc.ca that focuses on user experience to maximize engagement.

Finally, we showed our commitment to amateur sport as we showcased the International Association of Athletics Federations (IAAF) World Championships live from London, UK, (including in prime time) and reached a total of 4.7 million Canadians.

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

Reconciliation of Q2 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 Indigenous languages. We also provide international news and information from a uniquely Canadian perspective. In 2017, CBC/Radio-Canada will be at the heart of the celebrations and conversations with special 2017-themed multiplatform programming and events across Canada.

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