Discovery Channel

Pay & Specialty – Financial Summary 2010-2014

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
315413765 Discovery Channel 2953285 Canada Inc. BCE Inc. Specialty (category A service) 2014

Revenue ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Residential/bulk/smatv subscriber revenue 37,691,034 37,017,632 -1.79 37,561,048 1.47 36,916,596 -1.72 39,298,440 6.45 1.1
DTH revenue 12,492,684 13,001,758 4.07 12,813,795 -1.45 12,759,759 -0.42 12,561,789 -1.55 0.1
Local advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
National advertising revenue 45,667,406 49,868,798 9.20 48,762,172 -2.22 51,649,777 5.92 47,768,274 -7.52 1.1
Other revenue 0 24,654 n/a 58,050 135.46 45,946 -20.85 193,999 322.23
Total Revenue 95,851,124 99,912,842 4.24 99,195,065 -0.72 101,372,078 2.19 99,822,502 -1.53 1.0

Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Programming and Production 49,812,168 50,818,252 2.02 55,167,950 8.56 60,635,604 9.91 59,228,062 -2.32 4.4
Technical 974,450 987,812 1.37 1,038,482 5.13 1,081,021 4.10 1,102,134 1.95 3.1
Sales and Promotion 8,354,617 6,798,612 -18.62 5,479,653 -19.40 7,315,624 33.51 6,473,779 -11.51 -6.2
Administration and General 3,277,091 4,736,041 44.52 3,826,290 -19.21 4,519,959 18.13 4,145,161 -8.29 6.1
Total Expenses 62,418,326 63,340,717 1.48 65,512,375 3.43 73,552,208 12.27 70,949,136 -3.54 3.3

Performance ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Income 33,432,798 36,572,125 33,682,690 27,819,870 28,873,366
Depreciation 110,877 1,484,450 >999± 2,014,491 35.71 1,596,609 -20.74 1,666,863 4.40 96.9
P.B.I.T. 33,321,921 35,087,675 31,668,199 26,223,261 27,206,503
Interest Expense 0 3,381 n/a 122,225 >999± 2,428,788 >999± 2,685,969 10.59
Adjustments - Gain (Loss) 289,242 325,546 12.55 -2,498,854 -867.59 0 -100.00 0 n/a
Pre-tax Profit 33,611,163 35,409,840 29,047,120 23,794,473 24,520,534

Canadian Programming Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Acquisition of rights 14,835,969 20,653,749 39.21 23,117,073 11.93 30,324,090 31.18 31,788,851 4.83 21.0
Script & concept 0 201,333 n/a 293,400 45.73 716,682 144.27 317,375 -55.72 n/a
Filler Programming + Program Production 20,922,950 19,071,646 -8.85 19,984,708 4.79 18,315,418 -8.35 15,333,669 -16.28 -7.5
Investment in Programming 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
Total Canadian Programming 35,758,919 39,926,728 11.66 43,395,181 8.69 49,356,190 13.74 47,439,895 -3.88 7.3
Canadian Programming/Revenue (%) 37.31 39.96 43.75 48.69 47.52

Staff ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Total Remuneration 5,014,038 6,171,812 23.09 4,967,867 -19.51 5,019,206 1.03 4,724,466 -5.87 -1.5
Total Staff Count 55.6 49.5 -10.97 48 -3.03 42 -12.50 40 -4.76
Avg Remuneration 90,181 124,683 38.26 103,497 -16.99 119,505 15.47 118,112 -1.17 7.0

Subscribers
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Subscribers 8,197,716 8,113,810 -1.02 7,899,862 -2.64 7,733,150 -2.11 7,560,436 -2.23 -2.0

Profitability (%)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Margin 34.9 36.6 34.0 27.4 28.9
P.B.I.T. Margin 34.8 35.1 31.9 25.9 27.3
Pre-tax Margin 35.1 35.4 29.3 23.5 24.6
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