Encore Avenue

Pay & Specialty – Financial Summary 2010-2014

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
435413703 Encore Avenue Encore Avenue Ltd. Corus Entertainment Inc. Pay-TV (category A service) 2014

Revenue ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Residential/bulk/smatv subscriber revenue 10,894,824 12,286,724 12.78 12,722,913 3.55 13,304,894 4.57 13,573,759 2.02 5.7
DTH revenue 8,280,946 8,265,063 -0.19 7,120,619 -13.85 7,071,288 -0.69 6,683,998 -5.48 -5.2
Local advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
National advertising revenue 0 0 n/a 0 n/a 0 n/a 0 n/a n/a
Other revenue 0 0 n/a 0 n/a 0 n/a 0 n/a
Total Revenue 19,175,770 20,551,787 7.18 19,843,532 -3.45 20,376,182 2.68 20,257,757 -0.58 1.4

Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Programming and Production 5,604,802 6,754,222 20.51 5,422,446 -19.72 5,299,175 -2.27 5,122,249 -3.34 -2.2
Technical 1,330,845 1,401,271 5.29 1,293,898 -7.66 1,203,294 -7.00 1,113,366 -7.47 -4.4
Sales and Promotion 496,772 435,969 -12.24 332,408 -23.75 309,162 -6.99 277,503 -10.24 -13.6
Administration and General 2,374,021 3,031,144 27.68 2,579,112 -14.91 2,239,719 -13.16 2,067,733 -7.68 -3.4
Total Expenses 9,806,440 11,622,606 18.52 9,627,864 -17.16 9,051,350 -5.99 8,580,851 -5.20 -3.3

Performance ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Income 9,369,330 8,929,181 10,215,668 11,324,832 11,676,906
Depreciation 0 0 n/a 511,597 n/a 563,839 10.21 491,452 -12.84 n/a
P.B.I.T. 9,369,330 8,929,181 9,704,071 10,760,993 11,185,454
Interest Expense 123,135 127,440 3.50 140,919 10.58 152,166 7.98 185,053 21.61
Adjustments - Gain (Loss) 1,198,175 1,669,115 39.30 1,135,344 -31.98 384,114 -66.17 645,049 67.93
Pre-tax Profit 10,444,370 10,470,856 10,698,496 10,992,941 11,645,450

Canadian Programming Expenses ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Acquisition of rights 992,593 891,586 -10.18 975,318 9.39 746,494 -23.46 441,406 -40.87 -18.3
Script & concept 0 8,593 n/a 38,233 344.93 38,198 -0.09 36,226 -5.16 n/a
Filler Programming + Program Production 582,696 539,802 -7.36 781,775 44.83 832,718 6.52 701,095 -15.81 4.7
Investment in Programming 0 1,437,948 n/a -145,350 -110.11 0 -100.00 0 n/a n/a
Total Canadian Programming 1,575,289 2,877,929 82.69 1,649,976 -42.67 1,617,410 -1.97 1,178,727 -27.12 -7.0
Canadian Programming/Revenue (%) 8.21 14.00 8.31 7.94 5.82

Staff ($)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Total Remuneration 2,065,823 1,904,419 -7.81 1,827,776 -4.02 1,761,688 -3.62 1,141,217 -35.22 -13.8
Total Staff Count 19 27 42.11 29 7.41 23 -20.69 27 17.39
Avg Remuneration 108,728 70,534 -35.13 63,027 -10.64 76,595 21.53 42,267 -44.82 -21.0

Subscribers
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Subscribers 2,443,595 2,371,054 -2.97 2,305,491 -2.77 2,249,940 -2.41 2,139,038 -4.93 -3.3

Profitability (%)
2010 2011 Var % 2012 Var % 2013 Var % 2014 Var % CAGR (%)
Operating Margin 48.9 43.4 51.5 55.6 57.6
P.B.I.T. Margin 48.9 43.4 48.9 52.8 55.2
Pre-tax Margin 54.5 50.9 53.9 53.9 57.5
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