We have four sources of direct funding: government appropriations for operating and capital expenditures, advertising revenue, subscriber fees, and financing and other income.

Revenue and Sources of Funds

For detailed year-to-date variance analysis, see the Results and Outlook section.


For the fiscal year ended March 31, 2015, government funding recognized was approximately 63% of total revenue and sources of funds. This included $102.8 million of amortization of deferred capital funding, which is $8.5 million lower than last year.

The federal government announced reductions in our appropriations during Federal Budget 2012 to be phased in over the last three years, 2014-2015 being the final year. Our share of these reductions is now $115.0 million annually, of which $45.5 million came into effect this year. This explains most of the current year decrease of parliamentary appropriations for operating expenditures, which now total $929.3 million.

A freeze of salary inflation funding for fiscal years 2014-2015 and 2015-2016 was confirmed by the government in its November 2013 Economic Update. This means that salary increases for our employees have to be managed through cost reductions in other areas. For an average salary increase of 1.5%, the Corporation needs to find $14.0 million in cost savings each year.


We generate revenue by selling advertising on our conventional and specialty television channels, CBC Radio 2, ICI Musique, and other platforms. For the year ended March 31, 2015, advertising revenue accounted for approximately 20% of our total revenue and sources of funds. Advertising revenue is decreasing as a proportion of our total revenue and sources of funds as a result of the end of our broadcast rights contract with the NHL in June 2014. The end of this contract has also resulted in lower associated costs for program rights and production.


Subscriber fees from our specialty services – CBC News Network, documentary, ICI EXPLORA, ICI ARTV, ICI RDI, the new ICI Extra premium package and – generated approximately 8% of total revenue and sources of funds for the year ended March 31, 2015.


Financing and other income includes contributions from the Canada Media Fund (CMF) and the Local Programming Improvement Fund (LPIF), which was phased out at the end of August 2014. It also includes income from activities such as program sales, rental of mobile broadcasting vehicles to external parties, rental of real estate assets, leasing of space at our transmission sites and merchandising. These sources of income collectively accounted for approximately 9% of total revenue and sources of funds in the current year.


The Broadcasting Act, section 46.1, confers on CBC/Radio-Canada the authority to borrow up to $220.0 million, or such greater amount as may be authorized by Parliament, subject to approval of the Minister of Finance. Section 54 (3.1) of the Act requires that our borrowing plan be included in our corporate plan for the approval of the Minister of Finance.

When we sold long-term accounts receivable in 2009 as part of our Financial Recovery Plan, which addressed the impact of the global economic slowdown and declining television advertising revenue, we provided a guarantee to investors to obtain the best possible value for selling the receivables. This guarantee was deemed to be borrowing. The outstanding amounts against the borrowing authority are as follows:

(in thousands of Canadian dollars)
Total borrowing authority available: 220,000
Authority used as at March 31, 2015:
Guarantee on accounts receivable monetization (141,343)
Remaining authority 78,657

However, guidelines established by the Department of Finance limit our borrowing activities to short-term initiatives with a payback period of six years or less. Borrowing to meet working capital purposes is prohibited.

Under the Broadcasting Act, section 47 (1), we are an agent of the Crown and therefore have the constitutional immunities, privileges and prerogatives that are enjoyed by the Crown. The Crown is also fully liable and financially exposed for all our actions and decisions while we are operating within our mandate. In other words, our assets and liabilities are the assets and liabilities of the Government of Canada.