OTTAWA – A new report says broadcast distributors earned more money – and more profits – last year.
The Canadian Radio-television and Telecommunications Commission says combined revenues for cable, satellite and multipoint distribution companies for the year ending last Aug. 31 rose to $12.5 billion from $11.4 billion the year before.
Total revenues generated by cable companies increased 9.7 per cent in 2010, to $10.1 billion from $9.2 billion, while operating expenses went up nine per cent, to $5.5 billion from $5.1 billion.
As a result, cable companies reported profits before interest and taxes of $2.5 billion, a 25.3 per cent margin – both bettering 2009.
The number of Canadian households that obtained basic television service from a cable company rose 2.2 per cent to 8.3 million subscribers.
The CRTC says cable companies employed 24,076 people and spent $1.8 billion on salaries, up from 22,716 and $1.7 billion the year previous.
Total revenues for satellite and multipoint distribution companies increased to $2.4 billion in 2010 from $2.2 billion in 2009, an 8.9 per cent increase.
Operating expenses rose four per cent, to $1.82 billion from $1.75 billion.
The CRTC says these companies’ profits before interest and taxes have improved significantly over five years, to a profit of $163.9 million in 2010 from a deficit of $32 million in 2006.
Their margins followed a similar trajectory during the same period, rising to a positive profit margin of 6.8 per cent from a negative profit margin of 1.9.
The regulator reports the number of Canadian households that obtained basic television service from satellite or multipoint distribution companies increased 3.7 per cent in 2010 to 2.9 million.
Satellite and multipoint distribution companies employed 2,704 people and paid $232.7 million in salaries, a shift from 2,982 people and $226.2 million the previous year.
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