W Network

Pay & Specialty – Financial Summary 2010-2014

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
415413806 W Network W Network Inc. Corus Entertainment Inc. Specialty (category A service) 2014

Revenue ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Residential/bulk/smatv subscriber revenue 23,083,675 23,591,545 2.20 22,521,445 -4.54 22,325,812 -0.87 20,739,105 -7.11 -2.6
DTH revenue 8,597,531 8,695,246 1.14 8,048,896 -7.43 6,930,451 -13.90 7,038,076 1.55 -4.9
Local advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
National advertising revenue 55,377,640 54,029,550 -2.43 56,825,514 5.17 61,223,657 7.74 52,869,152 -13.65 -1.2
Other revenue 670,648 760,275 13.36 697,028 -8.32 702,719 0.82 760,975 8.29
Total Revenue 87,729,494 87,076,616 -0.74 88,092,883 1.17 91,182,639 3.51 81,407,308 -10.72 -1.9

Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Programming and Production 33,460,793 31,831,706 -4.87 33,930,226 6.59 35,268,781 3.95 34,194,697 -3.05 0.5
Technical 1,024,816 1,011,163 -1.33 870,133 -13.95 793,286 -8.83 740,544 -6.65 -7.8
Sales and Promotion 6,582,791 6,462,997 -1.82 6,659,736 3.04 6,350,570 -4.64 3,076,724 -51.55 -17.3
Administration and General 8,325,768 9,971,807 19.77 9,055,706 -9.19 7,231,723 -20.14 4,925,170 -31.89 -12.3
Total Expenses 49,394,168 49,277,673 -0.24 50,515,801 2.51 49,644,360 -1.73 42,937,135 -13.51 -3.4

Performance ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Income 38,335,326 37,798,943 37,577,082 41,538,279 38,470,173
Depreciation 6,862 6,172 -10.06 1,844,514 >999± 2,030,597 10.09 1,376,073 -32.23 276.3
P.B.I.T. 38,328,464 37,792,771 35,732,568 39,507,682 37,094,100
Interest Expense 469,137 363,825 -22.45 445,801 22.53 460,258 3.24 420,307 -8.68
Adjustments - Gain (Loss) 8,818,186 -22,484,343 -354.98 1,108,884 -104.93 781,774 -29.50 1,827,800 133.80
Pre-tax Profit 46,677,513 14,944,603 36,395,651 39,829,198 38,501,593

Canadian Programming Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Acquisition of rights 21,432,490 21,352,968 -0.37 22,574,939 5.72 25,235,727 11.79 24,901,786 -1.32 3.8
Script & concept 471,020 354,116 -24.82 529,707 49.59 561,818 6.06 786,740 40.03 13.7
Filler Programming + Program Production 1,610,655 1,435,003 -10.91 2,135,715 48.83 2,262,570 5.94 1,936,555 -14.41 4.7
Investment in Programming 1,851,153 1,465,813 -20.82 1,420,861 -3.07 398,250 -71.97 439,985 10.48 -30.2
Total Canadian Programming 25,365,318 24,607,900 -2.99 26,661,222 8.34 28,458,365 6.74 28,065,066 -1.38 2.6
Canadian Programming/Revenue (%) 28.91 28.26 30.26 31.21 34.47

Staff ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Total Remuneration 5,452,265 6,062,828 11.20 3,693,609 -39.08 2,032,621 -44.97 1,602,619 -21.16 -26.4
Total Staff Count 70 78 11.43 71 -8.97 58 -18.31 46 -20.69
Avg Remuneration 77,890 77,729 -0.21 52,023 -33.07 35,045 -32.63 34,840 -0.59 -18.2

Subscribers
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Subscribers 8,374,058 8,387,168 0.16 8,403,260 0.19 8,278,673 -1.48 7,928,149 -4.23 -1.4

Profitability (%)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Margin 43.7 43.4 42.7 45.6 47.3
P.B.I.T. Margin 43.7 43.4 40.6 43.3 45.6
Pre-tax Margin 53.2 17.2 41.3 43.7 47.3
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