The Sports Network (TSN)

Pay & Specialty – Financial Summary 2010-2014

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
314600537 The Sports Network (TSN) The Sports Network Inc. BCE Inc. Specialty (category C service) 2014

Revenue ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Residential/bulk/smatv subscriber revenue 102,552,229 112,813,081 10.01 185,770,758 64.67 216,353,607 16.46 256,171,363 18.40 25.7
DTH revenue 33,246,953 34,254,957 3.03 55,738,143 62.72 62,900,532 12.85 77,279,671 22.86 23.5
Local advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
National advertising revenue 121,104,835 129,582,617 7.00 133,180,289 2.78 120,704,444 -9.37 118,645,699 -1.71 -0.5
Other revenue 10,714,389 12,749,039 18.99 144,521 -98.87 434,897 200.92 91,151 -79.04
Total Revenue 267,618,406 289,399,694 8.14 374,833,711 29.52 400,393,480 6.82 452,187,884 12.94 14.0

Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Programming and Production 180,398,010 167,091,606 -7.38 272,170,110 62.89 235,182,618 -13.59 282,051,564 19.93 11.8
Technical 5,581,701 5,939,227 6.41 930,329 -84.34 1,218,641 30.99 1,272,285 4.40 -30.9
Sales and Promotion 15,812,461 16,065,902 1.60 16,410,445 2.14 15,488,273 -5.62 16,841,223 8.74 1.6
Administration and General 12,335,363 15,363,935 24.55 15,593,200 1.49 19,702,712 26.35 19,068,717 -3.22 11.5
Total Expenses 214,127,535 204,460,670 -4.51 305,104,084 49.22 271,592,244 -10.98 319,233,789 17.54 10.5

Performance ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Income 53,490,871 84,939,024 69,729,627 128,801,236 132,954,095
Depreciation 529,590 2,735,050 416.45 7,933,517 190.07 5,765,857 -27.32 6,957,721 20.67 90.4
P.B.I.T. 52,961,281 82,203,974 61,796,110 123,035,379 125,996,374
Interest Expense 25,408,888 25,228,806 -0.71 25,253,030 0.10 25,213,408 -0.16 25,309,175 0.38
Adjustments - Gain (Loss) 14,829,179 1,353,215 -90.87 444,352 -67.16 4,519,565 917.11 2,795,593 -38.14
Pre-tax Profit 42,381,572 58,328,383 36,987,432 102,341,536 103,482,792

Canadian Programming Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Acquisition of rights 62,528,748 69,218,379 10.70 96,815,920 39.87 62,648,471 -35.29 103,461,482 65.15 13.4
Script & concept 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
Filler Programming + Program Production 85,710,968 70,928,036 -17.25 89,407,461 26.05 86,883,848 -2.82 98,414,292 13.27 3.5
Investment in Programming 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
Total Canadian Programming 148,239,716 140,146,415 -5.46 186,223,381 32.88 149,532,319 -19.70 201,875,774 35.00 8.0
Canadian Programming/Revenue (%) 55.39 48.43 49.68 37.35 44.64

Staff ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Total Remuneration 17,475,794 20,287,941 16.09 22,518,305 10.99 23,098,468 2.58 24,534,798 6.22 8.9
Total Staff Count 186 199 6.99 214 7.54 218 1.87 224 2.75
Avg Remuneration 93,956 101,949 8.51 105,226 3.21 105,956 0.69 109,530 3.37 3.9

Subscribers
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Subscribers 9,180,247 9,003,852 -1.92 9,190,812 2.08 9,069,491 -1.32 9,050,153 -0.21 -0.4

Profitability (%)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Margin 20.0 29.4 18.6 32.2 29.4
P.B.I.T. Margin 19.8 28.4 16.5 30.7 27.9
Pre-tax Margin 15.8 20.2 9.9 25.6 22.9
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