Year in Review
Financial Highlights
Revenue and sources of funds for fiscal years
| (in thousands of Canadian dollars) | For the year ended March 31 | ||
| 2015 | 2014 | % change | |
| Revenue | 600,135 | 767,830 | (21.8) |
| Expenses | (1,722,292) | (1,873,717) | (8.1) |
| Government funding | 1,036,096 | 1,090,898 | (5.0) |
| Results before non-operating items | (86,061) | (14,989) | N/M |
| Net results under IFRS for the year | (47,391) | (17,953) | N/M |
| Results on a Current Operating Basis1 | 19,224 | 46,429 | (58.6) |
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N/M = not meaningful 1 Results on a Current Operating Basis is a non-IFRS measure. A reconciliation of net results to Results on a Current Operating Basis is provided in Results in section 4.1. |
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RESULTS UNDER IFRS AND ON A CURRENT OPERATING BASIS
Results under International Financial Reporting Standards (IFRS) and on a Current Operating Basis this year reflect the cost reductions we have made in response to lower advertising revenues and lower government funding. In addition, our prior year results also included revenue and operating expenses from our coverage of the Sochi 2014 Winter Olympics and a full season of hockey:
- Revenue was lower by $167.7 million (21.8%) this year reflecting lower advertising revenue from major sporting events. While our revenue this year benefited from broadcasting the 2014 FIFA World Cup Brazil, last year's revenue included advertising from both the Sochi 2014 Olympic Winter Games and a complete season of Hockey Night in Canada (HNIC). The end of our contract with the NHL has also resulted in a decrease, in operating expenses as we no longer pay the associated programming costs. Revenue was also affected this year by lower contributions received from the Local Programming Improvement Fund (LPIF), as the fund was phased out on August 31, 2014.
- This year's expenses decreased by $151.4 million (8.1%), due to both lower broadcasting rights and production costs with less major sports coverage this year as mentioned above, and as a result of our successful cost-reduction initiatives. These decreases were somewhat offset by severance costs associated with workforce reduction announcements made in the first, third and fourth quarters of the year. These cost-reduction initiatives have allowed us to complete balanced financial planning for next year, which includes new strategic investments in accordance with the objectives of our strategic plan, A space for us all.
- Government funding recognized for accounting purposes decreased by $54.8 million (5.0%), reflecting decreases in government appropriations received and lower amounts of capital funding recognized.
- Results on a Current Operating Basis for the year were $19.2 million. This excludes items that do not generate or require funds from operations, the most significant being $45.8 million charged for non-cash pension expenses. Further details reconciling net results to Results on a Current Operating Basis are provided in Results and Outlook, section 4.
2014 FIFA World Cup Brazil
