YEAR IN REVIEW – OUR RESULTS
Our self-generated revenue increased by $28.5 million (5.4%) in 2017, as described below.
Our advertising revenue depends on the different events of significant importance we cover throughout the year, the overall health of the advertising market and the success of our programming schedule.
The $50.7 million increase in advertising revenue this year resulted from:
Advertising revenue from events was higher this year due to our broadcast of the Rio 2016 Olympic Games in the summer. Last year's advertising results included revenue from broadcasting the Toronto 2015 Pan Am and Parapan Am Games.
Advertising revenue from our ongoing activities declined by 0.7% overall. Within advertising, our platforms experienced variations in performance as follows:
- A decline in our TV advertising consistent with the persistent softness of the market, down 2.1% over last year. The market remains affected by audience declines in the 25-54 demographic. This demographic is particularly important for media buyers; therefore, we continue to closely monitor the market and our performance in this area.
This decrease was mostly offset by:
- Higher digital revenue, most notably in our English markets, in part because of higher audiences due to the number of significant news stories.
Subscriber fees (2.4%)
Our subscriber revenue is driven by the size of our subscriber base, which has declined when compared to the prior year due to the adverse effects of the cord-cutting and cord-shaving trends affecting the cable industry. For more details on our subscriber base by specialty channel, refer to the Accountability Plan section of this report.
Our subscriber revenue decreased by $3.3 million (2.4%) relative to last year. The main changes by specialty channel are highlighted below:
- CBC News Network, ICI RDI and ICI ARTV's revenue decreases resulted from subscriber base declines over last year.
- ICI TOU.TV EXTRA's revenue increased this year due to the continuous growth of its subscriber base, reflecting the success of this digital platform.
SUBSCRIBER FEES et ADVERTISING (13.1%)
Financing and other income depends on the different events and transactions throughout the year since it includes production revenue from host broadcasting services, and revenue from the sale of content. It also reflects the revenue from our rentals, sponsorships and retransmission rights. More information about our revenue streams is provided in note 20 Revenue of our Consolidated Financial Statements.
The 13.1% ($18.8 million) decrease in financing and other income this year resulted from:
Other income from events decreased this year as licensing revenue generated from Rio 2016 Olympic Games was lower than last year's production revenue from our host broadcasting activities of the Toronto 2015 Pan Am and Parapan Am Games.
Financing and other income arising from ongoing activities remained consistent with last year (+0.4%). Key changes within ongoing activities are highlighted below:
- Higher program sponsorship and production revenue from the Rio 2016 Paralympic Games;
- A lower foreign exchange gain due to stronger appreciation of the USD in 2015-2016; and
- An overall decrease in our ongoing programming and licensing revenue.