2016-2017 AT A GLANCE
In 2016-2017, our objective was to invest in key programming content in accordance with our strategic plan. In addition, our services benefited from the receipt of an additional $75 million in government funding. We have been successful in providing Canadians with more original content this year, and we achieved high growth in our digital platforms. In addition, 2016-2017 included the successful showcase of Canadian athletes with our broadcast of the Rio 2016 Olympic Games.
Higher event revenue this year from advertising due to our broadcast of the Rio 2016 Olympic Games.
Last year’s revenue included advertising and production revenue from our host broadcasting of the Toronto 2015 Pan Am and Parapan Am games.
Revenue from our ongoing activities decreased due to:
- lower conventional TV advertising revenue as the Canadian TV advertising market continues to soften; and
- a decline in our subscriber fees consistent with the industry which is being adversely affected by the cord-shaving and cord-cutting trends.
These decreases were partly offset by growth in our digital revenue, which continues to benefit from our shift towards digital programming and higher digital audiences.
We had higher event expenses this year from programming rights and production costs for the 2016 Rio Olympic Games. These costs were higher than those incurred last year to cover the 2015 Toronto Pan Am and Parapan Am Games.
We spent more on our ongoing activities this year as we invested in original Canadian TV content and enhanced our digital reach on multiple fronts. These additional investments in content and our digital platforms were made as we continue to implement our strategic plan.
These increases were partly offset by the effect of cost-savings initiatives, and lower pension costs.
Total government appropriations for operating activities increased by $75.0 million as announced by the government in March 2016. This increase is partially offset by a slight decrease in capital funding recognized in 2016-2017.
Changes in revenue and expenses, as summarized previously, were the main contributors to a loss on a Current Operating Basis of $22.3 million this year. Last year’s results on a Current Operating Basis were close to break even. The planned loss this year was funded by prior year reserves as we made new investments and increased our broadcasting costs.
Net results under IFRS were a loss of $70.8 million, greater than the loss of $64.0 million in 2015-2016. Our IFRS results reflect the changes in revenue, expenses and funding as discussed previously. In addition, IFRS results include other non-cash expenses not expected to require operating funds in the short term.