FINANCIAL REPORT FOR THE THIRD QUARTER ENDED DECEMBER 31, 2018
“Our revenue and expenses were in line with expectations this quarter, and we are continuing to pursue digital opportunities” said Judith Purves, CFO of CBC/Radio-Canada.
In the third quarter, progress continued on the development of our new three-year strategic plan. The new plan is expected to be delivered in the spring, setting out the key areas of strategic focus for CBC/Radio-Canada through to 2022.
CBC/Radio-Canada submitted recommendations to the government-appointed panel undertaking a review of the Broadcasting, Telecommunications and Radiocommunication Acts, proposing support for three key initiatives: Strengthening public broadcasting as the cornerstone of Canadian culture; Strengthening the quality and access to trusted news and information for all Canadians; and strengthening Canadian culture by ensuring that all companies who benefit from our market contribute to the sustainability of Canadian culture.
“In order to maintain a vibrant cultural ecosystem in Canada, we believe that all companies, both domestic and foreign, which benefit from Canadians' love of great content, should contribute financially to the creation of Canadian culture, as traditional broadcasting companies already do,” said Catherine Tait, CBC/Radio-Canada’s President and CEO.
On the programming side, Radio-Canada brought audiences together during the holiday season with New Year’s Eve family viewing on ICI TÉLÉ that shattered all previous ratings records. ICI TOU.TV and EXTRA experienced a surge in subscriber numbers and length of time subscribers are tuning in. With unique content and formats like BéBéatrice and Les éphémères, and partnerships with Télé-Quebec, ICI TOU.TV EXTRA offers a great audience experience. Meanwhile, CBC Television’s fall season launched two new Canadian shows this quarter: From the Vaults and In the Making. CBC Gem - CBC’s enhanced digital streaming service – was unveiled in December making it Canada’s destination for acclaimed Canadian programming and best-in-class content from around the world.
The 2017-2018 annual reports on Official Languages, Multiculturalism, and Employment Equity were also published in the third quarter. Together, these reports help shine a light on the efforts of our community of employees, who continue to lead change to make CBC/Radio-Canada a stronger, more diverse and inclusive national public broadcaster.
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 Q3 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.
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 are leading the transformation to meet the needs of Canadians in a digital world.