Private radio sees first revenue decline since 2009: StatsCan

French language and ethnic stations were among the industry's bright spots

Operating revenues for Canada’s private radio stations were “relatively stable” in 2014, according to the latest data from Statistics Canada, with a slight 0.5% decline to $1.6 billion.

However, the report also notes that this is the industry’s first revenue decline since 2009.

The report comes amid a prolonged – and rapidly accelerating – shift in media consumption habits, with a recent study by ZenithOptimedia revealing the average Canadian spent 75.4 minutes per day listening to radio in 2014, down from 87.4 minutes in 2010.

The report projects time spent with radio to continue falling, reaching just 63 minutes a day by 2017. It notes that both younger Canadians and those with a higher than average household income tend to favour online platforms at the expense of offline media such as radio and TV.

Advertising generated 98.5% of total operating revenues for private radio broadcasters last year, but while local advertising accounted for $1.1 billion, its share of the total ad pie decreased at the expense of national and network advertising.

According to Statistics Canada, local radio sales accounted for 67.7% of total operating revenues in 2014 – their lowest recorded contribution.

Advertising revenues for AM stations fell slightly, 1.2%, to $283.4 million from $286.8 million in 2013. The AM sector’s profit margin before interest and taxes declined for the second straight year, falling 4.6% to below 5% for the first time since 2007.

The report attributed the decline to a 1.3% decrease in operating revenues, which fell to $290.7 million from $294.5 million. The number of AM stations also continued to decrease, to 126 from 128 in 2013. However, the report also notes the rate has slowed from the period between 2008 and 2012.

Operating revenues in the FM sector fell 0.3% to $1.3 billion, mirroring a 0.6% decline in ad revenue. The FM sector’s profit before interest and taxes fell to 21.6% from 22.8% in 2013, with total profits of $287.1 million.

French language and ethnic stations were among the industry’s bright spots, with operating revenues for the country’s French stations increasing 2.1% to $267.4 million and the profit margin increasing from 14.2% to 16.5%, the largest increase since 2010.

Working from a smaller base, ethnic stations had profits of $7.3 million, with the profit margin before interest and taxes rising to 14.9% from 11.3% in 2013. Operating revenues for English stations fell 1.1% to $1.3 billion, with the profit margin before interest and taxes decreasing to 19.1% from 21.8% in 2013.

 

 

Add a comment

You must be to comment.

Advertising Articles

BC Children’s Hospital waxes poetic

A Christmas classic for children nestled all snug in their hospital beds.

Teaching makes you a better marketer (Column)

Tim Dolan on the crucible of the classroom and the effects in the boardroom

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

Watch This: Iogo’s talking dots

Ultima's yogurt brand believes if you've got an umlaut, flaunt it!

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

123W builds Betterwith from the ground up

New ice cream brand plays off the power of packaging and personality

Sobeys remakes its classic holiday commercial

Long-running ad that made a province sing along gets a modern update