Private radio broadcasting

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The operating revenues of the private radio broadcasting sector reached $1.6 billion (current dollars) in 2010, up 3.2% from 2009. Of those revenues, 97.6% were from advertising. The year 2009 marked the first year-over-year drop in revenues since 1993. Even with the gains recorded in 2010, revenues have yet to surpass the level registered in 2008, before the general economic downturn.

The recovery experienced by private radio broadcasters was also seen in their profit margin before interest and taxes, which rose to 19.1% in 2010, compared with 17.9% in 2009. Private radio broadcasters have consistently reported a profit margin before interest and taxes in excess of 15% since the late 1990s.

Radio broadcasters' performance varied from one region to another in 2010. For a second consecutive year, Ontario radio broadcasters were the most profitable, with 22.9 cents of profit before interest and taxes per dollar of revenue. The region with the lowest profit margin was Saskatchewan, with 11 cents of profit before interest and taxes per dollar of revenue. However, the profit margin before interest and taxes has been rising in Saskatchewan for two years, as it has been in Quebec and Manitoba. For the first time since 1976, the profit margin exceeded 10% in all regions of Canada.

The profit margin before interest and taxes for stations in large markets reached 24.8% in 2010. The profit margin before interest and taxes was 15.5% for stations in medium markets and 13.7% in small markets. In contrast, the growth of operating revenues was stronger in medium (+4.7%) and small markets (+4.5%) than in large markets (+1.5%).

Operating revenues rose 1.3% in 2010 for stations broadcasting on the AM band, while the number of stations declined by 4 during the year to 147 stations. AM stations registered their best return in 20 years with a 10% profit margin before interest and taxes. FM stations also increased their operating revenues (+3.7%) in 2010, while the number of stations rose to 528. The profit margin before interest and taxes of FM stations rose from 20.7% in 2009 to 21.4% in 2010. However, this margin was lower than the one recorded in 2008 (24.5%).

For a second consecutive year, Francophone radio stations (+6.0%) recorded stronger growth in their operating revenues than Anglophone stations (+2.6%) and ethnic stations (+4.5%) in 2010.

Note: Large markets are defined here as the five largest census metropolitan areas (CMAs), medium-sized markets as CMAs other than the five largest CMAs, and small markets as non-CMAs.

Available on CANSIM: tables 357-0002 and 357-0003.

Definitions, data sources and methods: survey number 2724.

The publication Radio Broadcasting Industry, 2010 (56-208-X, free), is now available from the Key resource module of our website under Publications.

For further information or to enquire about the concepts, methods or data quality of this release, contact Sylvain Ouellet (613-951-2779; sylvain.ouellet@statcan.gc.ca) or Dany Gravel (613-951-0390; dany.gravel@statcan.gc.ca), Business Special Surveys and Technology Statistics Division.