YEAR IN REVIEW HIGHLIGHTS

FINANCIAL HIGHLIGHTS

• 2016 TARGETS

  Under our strategic plan, Strategy 2020, we aim at achieving sustainable financial health, including the ability to invest in the future.

• 2016 RESULTS

  Two years into our new strategic plan, we have been able to invest in our content across our platforms, while also lowering our cost base.

• 2017 TARGETS

  We will continue investing in key programming content, including the upcoming 2016 Rio Olympics. In addition, we will continue to focus on reducing our cost base, enabling us to be agile.

Events

Lower event revenue as:

• Last year’s events included revenue from broadcasting both the 2013-2014 NHL hockey season playoffs and the 2014 FIFA World Cup Brazil; and
• The Local Programming Improvement Fund (LPIF), created to help fund local programming, was discontinued in August 2014.

Partially offsetting these decreases was additional revenue from covering the Toronto 2015 Pan Am and Parapan Am Games in the summer of 2015.

Ongoing activities

Revenue from our ongoing activities decreased as follows:

• The Corporation’s conventional TV advertising revenue declined, consistent with the Canadian TV market overall; and
• Our rental income was also lower following the sale of our mobile production assets and due to a decrease in rental income from independent producers, as anticipated.

Partly offsetting these decreases were:

• An increase in digital advertising revenue as we increase our focus on these platforms; and
• Additional subscriber revenue generated on French Services’ specialty platforms despite the cable industry’s overall downward trend.

Events

We spent less on producing and covering events this year. Our prior year expenses included costs to cover the 2013-2014 NHL hockey season playoffs and the 2014 FIFA World Cup Brazil games.

Partially offsetting these decreases were additional expenses incurred this year to cover the Toronto 2015 Pan Am and Parapan Am Games.

Ongoing activities

Our ongoing operating expenses decreased this year, mostly as a result of:

• Cost-reduction initiatives across the Corporation, providing approximately $60 million in annual savings; and
• Last year’s results included one-time restructuring expenses.

Approximately $30 million of savings from these cost-reduction initiatives were reinvested in programming content, in line with our strategic plan.

 

Our appropriations for operating activities remained consistent with last year. The slight decrease in Government funding is caused by the timing of capital funding recognized.

 

NET RESULTS

Results on a Current Operating Basis were a gain of $0.7 million this year. This result is close to breakeven, consistent with management’s objective to balance the Corporation’s budget. Last year’s Results on a Current Operating Basis were higher at $19.2 million, in large part because we sold a portion of our interest in SiriusXM Canada Holdings Inc. (SiriusXM) in July 2014.

Net results under IFRS were a loss of $64.0 million, greater than the loss of $47.4 million in 2014-2015. The decrease this year is due in large part to proceeds of $33.5 million recorded in 2014-2015 from selling a portion of our interest in SiriusXM in July 2014.

Results before non-operating items exclude, among other things, the gain on SiriusXM recorded last year. This measure better shows the improvement in our results achieved from lower operating expenses more than offsetting revenue decreases. We also reinvested in our content and produced special events such as the Toronto 2015 Pan Am and Parapan Am Games this year.