CBC/Radio-Canada's second 2018-2019 quarterly report now available online

November 29, 2018, Ottawa


Q2 Financial Highlights

  • Revenue from ongoing activities decreased by 9.0% this quarter. Our conventional and specialty TV revenue continues to be impacted by both the ongoing softness of the Canadian advertising market and the cord-cutting and cord-shaving trends. In addition, last year’s second quarter revenue included additional revenue received on retransmission royalties.
  • Government funding recognized during the second quarter decreased by 2.2%. By year-end, base operating funding recognized will be consistent with last year.
  • Our expenses decreased by 2.5% this quarter. This decrease was mostly driven by lower programming costs. Last year’s second quarter included special programming for Canada 150 events and coverage. In addition, some shifts in the program schedule over the summer months resulted in lower costs recognized this quarter.

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“Lower revenue and government funding recognized this quarter were partially offset by lower expenses. Our revenue remains challenged by a soft Canadian TV advertising market and an ever-changing media landscape,” said Judith Purves, CFO of CBC/Radio-Canada. “We also reached a major step in the construction of the new Maison de Radio-Canada (MRC) with the completion of the Central Equipment Room (CER) in September. The CER will be the technology nerve centre of our new MRC.”

Q2 Business Update

During the quarter, CBC/Radio-Canada’s 2018-2021 Diversity and Inclusion Plan was launched at its Annual Public Meeting in Edmonton, where President & CEO Catherine Tait and Board of Directors Chair Michael Goldbloom, along with a panel of guests, explored questions around diversity and inclusion.

Ms. Tait added: “The launch of our new three-year Diversity and Inclusion Plan reflected our commitment to ensuring that all Canadians are heard on our airwaves; that they—and their children—see themselves reflected on their public broadcaster. This plan sets clear objectives and a roadmap to get there. It builds on the work we’ve been doing to make our content, our workforce and our services better reflect all Canadians.”

Q2 was also marked by outstanding content, most notably a strong return of fan-favourite shows on both CBC and Radio-Canada. CBC aggressively pursued local outreach with the successful testing of its content diversification project in St. John’s, creating stronger community connections and local audience engagement, and launched CBC Kids News, creating news segments for younger audiences with an editorial panel of kids from across the country providing input. Digital programming took advantage of technological innovations with Radio-Canada’s digital podcast Cavale, wowing listeners with realistic dramatic scenes using binaural technology.

CBC/Radio-Canada’s 2017-2018 Annual Report and 2018-2019 quarterly reports are 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 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.

About CBC/Radio-Canada

CBC/Radio-Canada is Canada’s national public broadcaster. Through our mandate to inform, enlighten and entertain, we play a central role in strengthening Canadian culture. As Canada’s trusted news source, we offer a uniquely Canadian perspective on news, current affairs and world affairs. Our distinctively homegrown entertainment programming draws audiences from across the country. Deeply rooted in communities, CBC/Radio-Canada offers diverse content in English, French and eight Indigenous languages. We also deliver content in Spanish, Arabic and Chinese, as well as both official languages, through Radio Canada International (RCI). We are leading the transformation to meet the needs of Canadians in a digital world.

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