StatsCan: Radio thrived in 2003
OTTAWA (CP) — In the era of music downloading and Internet radio, conventional radio — led by FM stations — continued to thrive last year, says Statistics Canada.
And AM radio managed a significant turnaround, said the agency.
“Air time sales by private radio broadcasters jumped 8.4 per cent to $1.2 billion, the second largest year-over-year increase in the last 15 years,” the agency said Monday.
Operating expenses grew by 3.7 per cent, less than half the revenue increase of 8.2 per cent.
“As a result, profits before interest and taxes represented 19.1 per cent of their revenues, up from 15.6 per cent in 2002.”
In fact, “in the last six years, private radio has generated a higher profit margin than private television,” the agency said.
FM stations increased air time sales by 9.8 per cent in 2003, the highest since 1998. Their 25.2 per cent profit margin before interest and taxes in 2003 was consistent with returns for the previous five years.
“The performance of AM stations paled by comparison,” Statistics Canada said.
Air time sales grew by 4.5 per cent, and their profit margin was 1.6 per cent.
However, “modest as they may appear, the 2003 results represent a significant turnaround for AM radio. This segment of the industry has sustained losses before interest and taxes every year since 1990. Air time sales by AM stations declined every year during that period with the exception of 1997 and 1998.”
For the third consecutive year Calgary and Ottawa-Gatineau were the most profitable large markets, with profit margins of 29.2 per cent and 27.2 per cent respectively.
The whole industry had a weekly average of 9,009 employees in 2003, a small increase from 8,934 workers in 2002.
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