Advertising revenues for Canada’s commercial radio stations – as well as those operated by the CBC – have remained stable over the past five years, according to new data released today by the CRTC.
The country’s 704 commercial radio stations had total revenues of $1.6 billion for the broadcast year ending Aug. 31, down $11.6 million (0.7%) from 2014. National and local advertising contributed $1.58 billion, or 98% of total revenues.
Advertising revenues fell in the Atlantic provinces (-1.4%), Quebec (-2.2%), Ontario (-0.6%) and British Columbia and the Territories (-1.1%) and remained unchanged in the Prairies.
The report also notes differences in individual markets. While ad revenues in Toronto were relatively unchanged year-over-year, Montreal and Quebec City saw dips of 3% and 3.8% respectively, while St. John saw the largest increase of any of the 29 markets tracked by the CRTC at 29%. Revenues were also up in Winnipeg (3.2%), Calgary (2.9%) and Red Deer (1.6%).
Local airtime sales decreased 2.2% to $1.07 billion, though the loss was offset by a 2.3% gain in national sales, from $497.4 million to $508.8 million. While local ad sales have declined for four straight years, national sales – which accounted for 32% of total ad revenues last year – have risen in each of the past six years.
The 2015 broadcast year also marked the second year in which the CBC was permitted to sell advertising on its Ici Musique and CBC Radio 2 services. Advertising revenues for those properties were $1.4 million, representing a 27.2% increase from the previous year, but remained a “modest” source of income for the public broadcast, accounting for just 0.5% of its total radio revenues.
Total revenues for the CBC’s 69 radio services decreased 3.9% to $276.5 million, the result of a $10.4 million decline in parliamentary appropriations for the public broadcaster. The new Liberal government recently pledged $150 million a year to the CBC through 2020-21, including an immediate $75 million injection this year.
A total of 13 new stations were added to the FM band in 2015, bringing the total number of stations to 580. They generated revenues of $1.31 billion last year, down $6.7 million from the previous year.
Revenues for English language FM stations were essentially flat at $1.043 billion, down just 0.3% from $1.040 billion the previous year. Revenues for French-language stations decreased 1.8%, from $259.2 million to $254.7 million, while ethnic stations increased 2.1% to a total of $21.8 million.
Revenues for the country’s 124 AM stations decreased 1.7% from $291 million to $286 million.
Canadian commercial radio stations employed more than 9,500 people (a 3.4% decline from 2014). They decreased expenditures by $14.2 million for a total of $1.3 billion, leading to a slight increase in profits before interest and taxes (PBIT) – from $298.2 million to $303.4 million.
