Pay and Specialty - Food Network Canada

Individual Pay, Pay-per-view, Video-on-demand and Specialty Services - Financial Summary 2011-2015

Table of Contents

Undertaking # Service Name Licensee Licensee Ultimate Owner Type Year
305423329 Food Network Canada Food Network Canada Inc. Shaw Communications Inc. Specialty (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 7,843,466 9,295,403 18.51 11,120,018 19.63 12,085,532 8.68 12,795,299 5.87 13.0
DTH revenue 2,968,551 3,058,305 3.02 3,799,301 24.23 4,354,575 14.62 4,552,395 4.54 11.3
Local advertising revenue 0 0 0 0 0
National advertising revenue 41,543,723 47,399,014 14.09 51,438,544 8.52 52,666,823 2.39 49,782,982 -5.48 4.6
Other revenue 0 0 0 0 0
Total Revenue 52,355,740 59,752,722 14.13 66,357,863 11.05 69,106,930 4.14 67,130,676 -2.86 6.4

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 22,327,832 23,719,101 6.23 25,383,819 7.02 25,129,033 -1.00 28,126,806 11.93 5.9
Technical 703,857 701,293 -0.36 677,103 -3.45 1,044,606 54.28 1,343,520 28.61 17.5
Sales and Promotion 2,491,432 2,076,056 -16.67 1,582,132 -23.79 1,880,423 18.85 2,325,803 23.69 -1.7
Administration and General 4,024,146 3,484,352 -13.41 3,221,817 -7.53 3,679,336 14.20 5,313,473 44.41 7.2
Total Expenses 29,547,267 29,980,802 1.47 30,864,871 2.95 31,733,398 2.81 37,109,602 16.94 5.9

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 22,808,473 29,771,920 35,492,992 37,373,532 30,021,074
Depreciation 167,370 257,155 53.64 172,123 -33.07 189,572 10.14 98,098 -48.25 -12.5
P.B.I.T. 22,641,103 29,514,765 35,320,869 37,183,960 29,922,976
Interest Expense -27,618 3,318 -112.01 18,863 468.51 -28,182 -249.40 -29,744 5.54
Adjustments - Gain (Loss) 0 0 0 0 0
Pre-tax Profit 22,668,721 29,511,447 35,302,006 37,212,142 29,952,720

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 16,862,084 18,219,555 8.05 19,934,970 9.42 19,805,637 -0.65 20,735,876 4.70 5.3
Script & concept 308,458 114,474 -62.89 52,500 -54.14 100,000 90.48 73,000 -27.00 -30.3
Filler Programming + Program Production 1,754,697 1,827,801 4.17 1,938,155 6.04 1,563,403 -19.34 1,321,468 -15.47 -6.8
Investment in Programming 0 0 0 0 0
Total Canadian Programming 18,925,239 20,161,830 6.53 21,925,625 8.75 21,469,040 -2.08 22,130,344 3.08 4.0
Canadian Programming/Revenue (%) 36.15 33.74 33.04 31.07 32.97

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 2,040,122 2,974,490 45.80 3,006,310 1.07 3,226,075 7.31 3,334,880 3.37 13.1
Average Staff Count 27 35 29.63 34 -2.86 36 5.88 36 0.00
Avg Remuneration ($) 75,560 84,985 12.47 88,421 4.04 89,613 1.35 92,636 3.37 5.2

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 6,357,703 7,368,691 15.90 7,539,371 2.32 6,201,097 -17.75 6,032,667 -2.72 -1.3

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 43.6 49.8 53.5 54.1 44.7
P.B.I.T. Margin 43.2 49.4 53.2 53.8 44.6
Pre-tax Margin 43.3 49.4 53.2 53.8 44.6

CAGR = Compound Annual Growth Rate

DTH = Direct-to-Home

SMATV = Satellite Master Atenna Television

P.B.I.T. = Profit Before Interest and Tax

Var = Variation

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