Private radio sector worth $1.6B: StatsCan

Operating revenues for Canada's private radio sector reached $1.6 billion in 2011, Statistics Canada said Wednesday. In a release, Statistics Canada said total revenues rose 3.7 per cent from 2010 with the “vast majority,” 97.7 per cent, coming from advertising. Statistics Canada said the FM sector’s operating revenues totalled $1.3 billion in 2011. It added that consecutive increases of 3.8 per cent in 2010 and 4.3 per cent in 2011 pushed FM radio revenues above the level they were at before the economic downturn in 2008. The number of AM stations continued to decline in 2011, the statistics agency said, noting that 16 AM stations have gone off the air since 2009. Revenues in the AM sector rose 1.1 per cent, reaching $311 million, in 2011. “AM radio increased its profitability from 10.1% to 10.6%,” the release said. According to Statistics Canada, ethnic stations had the highest growth in operating revenues in 2011, at 5.3 per cent. Operating revenues for English-language stations grew 3.7 per cent in 2011 and French-language stations 3.2 per cent. “Ethnic stations kept their profitability above 10% for the second consecutive year, with a total profit before interests and taxes of $4.7 million,” the release said. Statistics Canada said English-language radio profit margins before interests and taxes increased from 20 per cent in 2010 to 20.8 per cent, or $271.5 million, in 2011. The profit margin for French-language stations fell from 16.4 per cent in 2010 to 14 per cent, or $37 million, in 2011, Statistics Canada said. “FM radio’s profit margin before interest and taxes was 21.5%, up from 21.3% the previous year, but still below the 2008 profit margin of 24.5%,” the release said.

Private radio sector worth $1.6B: StatsCan

Brief | October 3, 2012

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