FINANCIAL REPORT FOR THE FIRST QUARTER ENDED JUNE 30, 2018
Q1 Financial Highlights
“Higher TV advertising revenue on French platforms, combined with growth in our financing, investment and other income insulated us this quarter from the continuing industry-wide pressures affecting the Canadian conventional and specialty TV markets,” said Judith Purves, CFO of CBC/Radio-Canada. “In addition, we continued to increase our programming and technical expenses this quarter as we enter the final phase of our current strategic plan.”
Q1 Business Update
CBC/Radio-Canada welcomed the appointment of Catherine Tait as its new President and CEO for a five-year mandate. Ms. Tait’s appointment was subject to the Government of Canada’s open, transparent and merit-based selection process, which resulted in the identification of high-quality candidates who reflect Canada’s diversity.
“I am honoured to join CBC/Radio-Canada. I want to make sure it remains strong and engaged with Canadians in the digital world,” said Catherine Tait, CBC/Radio-Canada’s new President and CEO. “I believe that content choice is paramount. I also believe that a robust offering of extraordinary Canadian stories for global audiences is vital. This is where the public broadcaster can make its most meaningful contribution. Whether through radio, TV or digital—we must nurture our creators and be the conduit of Canadian stories here at home and around the world.”
With a spotlight on diversity and inclusion initiatives, both English and French Services featured multiplatform Indigenous programming in celebration of National Indigenous Peoples Day, as well as participated in Pride events across the country. On the non-programming side, in order to attract top talent, we updated the Working With Us career section on our corporate website to provide details on employee initiatives and memberships with business networks. We are also helping to break new ground as the first Canadian media company to publicly share voluntary data on the gender and sexual diversity (LGBTQ+)* of our workforce.
Both networks featured an exciting lineup of new and returning digital, radio and television offerings for all Canadians, while providing extensive coverage of news events like the elections in Ontario. Finally, summer wouldn’t be summer without great Canadian music. Both CBC and Radio-Canada capitalized on the numerous musical festivals taking place by meeting audiences on site and creating several related music streams for listeners. You can read more about what we accomplished this quarter in our Business Highlights section.
CBC/Radio-Canada’s 2018-2019 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
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 period. 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.