Profits in FM drive radio market close to $1-billion in revenues, CRTC report finds

Having a radio station may still be a licence to print money, but it had better be on the FM band. A new CRTC report, Statistical and Financial Summaries for Private Radio, shows broadcasters are migrating from the AM band to FM and getting a return on their investment. The 487 AM and FM stations across the country had revenues of $972.4 million in 1999, up 3.4 per cent from the $940 million of the previous year. Pre-tax profits were up 11.1 per cent, registering at $88.8 million, up from 1998's $80 million. The pre-tax margin for all radio stations was 9.14 per cent in 1999, up from the 8.51 per cent recorded in 1998. The 400 stations listed under English and non-Francophone broadcasting recorded revenues of $817 million, a 3.8 per cent increase over $786.7 million in 1998. Pre-tax profits registered a 10.4 per cent jump, from $64.3 million in 1998 to $71 million the following year. Pre-tax margins increased from 8.17 per cent to 8.69 per cent in 1999. French-speaking stations saw an increase from $153.2 million in 1998 to $155.3 million in 1999, a hike of 1.4 per cent. Pre-tax profits were $17.8 million last year, up 13.7 per cent from the preceding year's $15.7 million. Margins were up to 11.5 per cent, from 1998's 10.26 per cent. RADIO INDUSTRY REVENUES -- AM & FMAtlanticQuebecOntarioPrairiesRevenue 1999$67,513,584$185,158,014$358,390,919$206,250,094Revenue 1998$66,259,589$181,340,223$343,796,539$194,705,594Percentage change1.92.14.25.9Pre-tax Profit 1999$8,514,550$ 22,130,243$ 29,041,699$ 19,631,499Pre-tax profit 1998$6,443,510$ 19,735,861$ 29,661,315$ 17,027,636Percentage change32.112.1-2.115.3Pre-tax margin 1999 (%)12.6111.958.19.52Pre-tax margin 1998 (%)9.7210.888.638.75 * Figures represent AM and FM stations broadcasting in all languages.Source: CRTC Statistical and Financial Summaries for Private Radio, 1999. The number of AM radio stations reporting fell from 264 in 1998 to 251 in 1999. There was a corresponding jump in FM, from 223 to 236. AM revenues were $314.6 million in 1999, down 4.5 per cent from the $329.3 million the previous year. Pre-tax losses nearly doubled, plummeting from $17 million in 1998 to $33.8 million the following year. Pre-tax margins were down 10.76 per cent in 1999, as compared with a decrease of 5.17 per cent in 1998. English and other stations declined from 232 reporting in 1998 to 224 the next year. Revenues fell 3.8 per cent from $297.6 million in 1998 to $286.4 million in 1999. Pre-tax losses of $15.7 million ballooned to $29.1 million last year. Margins were down 5.29 per cent in 1998 and 10.19 per cent in 1999. The Francophone market saw five fewer stations reporting. The $28.1 million in revenue recorded in 1999 was a decline of 11.2 per cent from the $31.6 million of a year earlier. Pre-tax losses swelled from $1.25 million in 1998 to $4.6 million in 1999. The pre-tax margin was down 16.5 per cent in 1999, against a 3.97 drop in 1998. By contrast, the FM stations saw revenues move from $610.7 million in 1998 to $657.8 million in 1999, an increase of 7.7 per cent. Pre-tax profits leapt 26.5 per cent, from $97 million to $122.7 million in 1999. Pre-tax margins were posted at 18.65 per cent in 1999, up 15.89 per cent the year previous. The number of English and other stations reporting increased from 168 to 176. The $530.5 million in revenues represents an 8.5 per cent increase from the $489.1 million of the year before. Profits were up 25.2 per cent at $100.2 million in 1999, from 1998's $80 million. The French market also saw an increase in stations, with 60 reporting in 1999, up five from 1998. Revenues went from $121.5 in 1998 to $127.2 million last year, a hike of 4.7 per cent. Pre-tax profits were posted at $22.5 million in 1999, up 32.6 per cent from 1998's $16.9 million.

Profits in FM drive radio market close to $1-billion in revenues, CRTC report finds

News | 05/11/2000 4:00 am EDT

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