Results and Outlook
The following paragraphs explain the revenue decrease of $167.7 million (21.8%) in 2014-2015 compared to last year.
|(in thousands of Canadian dollars)||For the year ended March 31|
|Financing and other income|
Advertising revenue was lower this year by $157.8 million (32.1%) due to reductions in both English and French Services of $139.3 million (41.7%), and $18.4 million (11.7%) respectively.
Last fiscal year’s coverage of the Sochi 2014 Olympic Winter Games in February 2014 generated advertising revenue on multiple platforms for both English and French Services. The absence of this income in 2014-2015 mostly explains the decrease in revenue. This decrease was partly offset by additional revenue from the broadcast of the 2014 FIFA World Cup Brazil in June and July 2014.
Other factors contributing to lower advertising revenue was the end of our contract with the NHL following Rogers’ acquisition of the broadcast rights and a weaker advertising market this year. Helping to offset these revenue decreases is the absence of rights costs and production costs for NHL hockey, as discussed below in Operating Expenses. Our balanced budget for 2015-2016 considers both the absence of NHL hockey for a full fiscal year and the possibility of continued softness in the advertising market.
Subscriber fees were marginally lower by $0.5 million (0.3%) in 2014-2015 over the prior year. Higher fees resulting from the increased popularity of ICI EXPLORA, the launch of the new Extra offer from ICI Tou.tv and the launch of Curio.ca were offset by slight decreases in other services, mainly CBC News Network, ICI RDI and ICI ARTV.
Financing and other income
Financing and other income was lower by $9.5 million (6.6%) compared to last year. This was partly due to a $16.8 million reduction in LPIF contributions for both English and French Services. The fund was fully phased out on August 31, 2014. Another contributing factor to the decrease in English and French Services’ other income was the recognition of non-advertising Olympic revenue in 2013-2014.
These decreases were partly offset by new revenue recognized as a result of our agreement with Rogers for ongoing coverage of Hockey Night in Canada, in which CBC provides certain services and airtime to Rogers. Additionally, revenue increased from the receipt of digital rights revenue from broadcasting the 2014 FIFA World Cup Brazil and the FIFA U-20 Women’s World Cup, as well as from an increase in retransmission rights and higher rentals of excess space as we continue to reduce our real estate footprint by finding third-party tenants to rent our excess space.