Discovery Velocity (formerly Discovery World HD)

Pay & Specialty – Financial Summary 2010-2014

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
535421250 Discovery Velocity (formerly Discovery World HD) 2953285 Canada Inc. BCE Inc. Specialty (category B service) 2014

Revenue ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Residential/bulk/smatv subscriber revenue 14,830,230 16,973,777 14.45 18,110,093 6.69 17,609,321 -2.77 17,141,791 -2.66 3.7
DTH revenue 9,045,526 9,840,390 8.79 8,752,779 -11.05 8,258,799 -5.64 7,630,502 -7.61 -4.2
Local advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
National advertising revenue 220,049 330,624 50.25 276,884 -16.25 428,993 54.94 585,057 36.38 27.7
Other revenue 0 0 n/a 0 n/a 0 n/a 0 n/a
Total Revenue 24,095,805 27,144,791 12.65 27,139,756 -0.02 26,297,113 -3.10 25,357,350 -3.57 1.3

Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Programming and Production 7,297,954 9,792,369 34.18 8,516,933 -13.02 8,611,387 1.11 8,234,488 -4.38 3.1
Technical 602,273 594,657 -1.26 282,453 -52.50 423,697 50.01 424,473 0.18 -8.4
Sales and Promotion 2,103,870 1,871,278 -11.06 853,702 -54.38 862,491 1.03 827,360 -4.07 -20.8
Administration and General 658,649 989,642 50.25 1,058,764 6.98 1,489,026 40.64 1,208,642 -18.83 16.4
Total Expenses 10,662,746 13,247,946 24.25 10,711,852 -19.14 11,386,601 6.30 10,694,963 -6.07 0.1

Performance ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Income 13,433,059 13,896,845 16,427,904 14,910,512 14,662,387
Depreciation 0 123,157 n/a 395,317 220.99 361,515 -8.55 361,531 0.00 n/a
P.B.I.T. 13,433,059 13,773,688 16,032,587 14,548,997 14,300,856
Interest Expense 0 0 n/a 19 n/a 75 294.74 36 -52.00
Adjustments - Gain (Loss) 0 0 n/a 0 n/a 0 n/a 0 n/a
Pre-tax Profit 13,433,059 13,773,688 16,032,568 14,548,922 14,300,820

Canadian Programming Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Acquisition of rights 473,460 2,370,172 400.61 2,782,019 17.38 2,935,582 5.52 3,637,590 23.91 66.5
Script & concept 0 25,000 n/a 10,000 -60.00 20,500 105.00 9,892 -51.75 n/a
Filler Programming + Program Production 2,542,755 2,775,263 9.14 874,296 -68.50 462,002 -47.16 342,935 -25.77 -39.4
Investment in Programming 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
Total Canadian Programming 3,016,215 5,170,435 71.42 3,666,315 -29.09 3,418,084 -6.77 3,990,417 16.74 7.3
Canadian Programming/Revenue (%) 12.52 19.05 13.51 13.00 15.74

Staff ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Total Remuneration 142,418 183,879 29.11 201,402 9.53 202,822 0.71 195,391 -3.66 8.2
Total Staff Count 2 2.5 25.00 2.5 0.00 2.5 0.00 2.5 0.00
Avg Remuneration 71,209 73,552 3.29 80,561 9.53 81,129 0.71 78,156 -3.66 2.4

Subscribers
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Subscribers 1,271,544 1,442,292 13.43 1,493,112 3.52 1,320,604 -11.55 1,228,798 -6.95 -0.9

Profitability (%)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Margin 55.7 51.2 60.5 56.7 57.8
P.B.I.T. Margin 55.7 50.7 59.1 55.3 56.4
Pre-tax Margin 55.7 50.7 59.1 55.3 56.4
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