SALES OF LOCAL ADVERTISING FOR CANADIAN RADIO STATIONS REACH ONE BILLION DOLLARS CRTC Release The Canadian Radio-television and Telecommunications Commission (CRTC) today released the financial results for the Canadian private commercial radio industry. From 2005 to 2006, total revenues for AM and FM radio stations increased by 5.7%, going from $1.3 billion to $1.4 billion, while sales for local advertising rose by 4.6%, to reach 1.04 billion dollars in 2006, compared with $990.9 million in 2005. Sales of national advertising increased by 9% in one year, rising from $322.6 million to $351.5 million.
Profits before interest and taxes (PBIT) increased by 2.7% to $284.5 million in 2006. The PBIT margin remained steady at 20% in 2005 and 2006. Total spending by radio stations rose by 6.1% in one year, up to $1.1 billion in 2006.
AM radio AM radio experienced stronger growth in revenues between 2005 and 2006 than at any other time in the last five years. Revenues rose by 4.6%, from $306 million to $320 million, while the average rate of revenue growth between 2002 and 2006 was 1.9%. PBIT also increased, going from $13.3 million to $17.8 million, an increase of 33.7%.
The increase in revenues was even more pronounced for the 155 English-language AM radio stations. Their revenues rose by 5.3% to $280.4 million in 2006, while PBIT came in at $23 million, an increase of 33.4% over 2005. The 14 French-language AM radio stations experienced revenue growth of 1.4%, from $17.9 million to $18.2 million. However, they experienced losses of $7.4 million before interest and taxes in 2006, compared with losses of $6.7 million in 2005.
As for the 9 ethnic and Aboriginal AM radio stations, their revenues declined by 1.2%, coming in at $21.5 million in 2006, and their PBIT totalled $2.1 million.
FM radio Revenues for FM radio stations in Canada have been steadily increasing over the last five years. They reached $1.1 billion in 2006, which represents a growth of 6% over the $1.03 billion posted in 2005. PBIT remained relatively stable, coming in at $266.7 million in 2006 compared with $263.7 million in 2005.
The 331 English-language FM radio stations posted total revenues of $877.3 million in 2006, an increase of 6.1%, and PBIT held steady at $232.9 million. As for the 79 French-language FM radio stations, their revenues hit $200.3 million, which is an increase of 4.8% over the previous year, and their PBIT totalled $32.9 million in 2006, up by 9.8% from 2005.
Finally, revenues for the 9 ethnic and Aboriginal radio stations increased by 15.2%, rising from $13.1 million in 2005 to $15.1 million in 2006. Their PBIT remained more or less stable, coming in at $924,937 compared with $919,356 the previous year.
The Canadian radio industry employed 9,763 people in 2006 and paid a total of $577.8 million in salaries. |