Pay and Specialty - HGTV Canada - Home and Garden Television 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
305417322 HGTV Canada - Home and Garden Television Canada HGTV 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 11,306,713 12,349,505 9.22 13,213,309 6.99 13,906,801 5.25 14,425,257 3.73 6.3
DTH revenue 3,761,584 4,054,599 7.79 4,000,667 -1.33 4,616,435 15.39 5,165,257 11.89 8.3
Local advertising revenue 0 0 0 0 0
National advertising revenue 59,408,637 55,920,827 -5.87 56,651,109 1.31 58,096,644 2.55 52,530,899 -9.58 -3.0
Other revenue 0 0 0 0 0
Total Revenue 74,476,934 72,324,931 -2.89 73,865,085 2.13 76,619,880 3.73 72,121,413 -5.87 -0.8

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 34,352,175 31,943,595 -7.01 24,959,902 -21.86 25,620,925 2.65 32,605,868 27.26 -1.3
Technical 717,179 735,374 2.54 700,590 -4.73 986,198 40.77 1,228,708 24.59 14.4
Sales and Promotion 2,886,220 1,307,073 -54.71 1,582,475 21.07 2,066,248 30.57 1,905,975 -7.76 -9.9
Administration and General 4,586,948 3,802,528 -17.10 3,461,603 -8.97 3,882,929 12.17 5,580,980 43.73 5.0
Total Expenses 42,542,522 37,788,570 -11.17 30,704,570 -18.75 32,556,300 6.03 41,321,531 26.92 -0.7

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 31,934,412 34,536,361 43,160,515 44,063,580 30,799,882
Depreciation 3,644 304,955 >999± 319,596 4.80 319,596 0.00 46,322 -85.51 88.8
P.B.I.T. 31,930,768 34,231,406 42,840,919 43,743,984 30,753,560
Interest Expense -24,437 -2,683 -89.02 16,794 -725.94 -48,505 -388.82 -43,767 -9.77
Adjustments - Gain (Loss) 0 0 0 0 0
Pre-tax Profit 31,955,205 34,234,089 42,824,125 43,792,489 30,797,327

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 29,597,525 25,615,267 -13.45 19,514,730 -23.82 20,069,157 2.84 25,397,018 26.55 -3.8
Script & concept 105,000 704,524 570.98 801,677 13.79 174,775 -78.20 339,983 94.53 34.1
Filler Programming + Program Production 2,357,640 2,688,550 14.04 2,371,765 -11.78 2,097,821 -11.55 1,815,198 -13.47 -6.3
Investment in Programming 0 0 0 0 0
Total Canadian Programming 32,060,165 29,008,341 -9.52 22,688,172 -21.79 22,341,753 -1.53 27,552,199 23.32 -3.7
Canadian Programming/Revenue (%) 43.05 40.11 30.72 29.16 38.20

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 2,341,101 3,322,407 41.92 3,386,465 1.93 3,752,302 10.80 3,826,232 1.97 13.1
Average Staff Count 31 39 25.81 38 -2.56 41 7.89 41 0.00
Avg Remuneration ($) 75,519 85,190 12.81 89,118 4.61 91,520 2.70 93,323 1.97 5.4

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 8,309,463 8,697,847 4.67 9,018,881 3.69 7,250,430 -19.61 7,127,618 -1.69 -3.8

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 42.9 47.8 58.4 57.5 42.7
P.B.I.T. Margin 42.9 47.3 58.0 57.1 42.6
Pre-tax Margin 42.9 47.3 58.0 57.2 42.7

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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