Pay and Specialty - M3 (formerly MuchMoreMusic)

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
305417364 M3 (formerly MuchMoreMusic) Bell Media Inc. BCE Inc. Specialty (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 4,636,715 4,807,039 3.67 4,450,591 -7.42 5,345,424 20.11 5,147,928 -3.69 2.7
DTH revenue 1,387,559 1,549,314 11.66 1,749,979 12.95 1,836,134 4.92 1,878,646 2.32 7.9
Local advertising revenue 0 0 0 0 0
National advertising revenue 11,371,867 11,135,083 -2.08 11,299,450 1.48 12,590,589 11.43 12,190,202 -3.18 1.8
Other revenue 0 8,000 0 -100.00 58,500 10,787 -81.56
Total Revenue 17,396,141 17,499,436 0.59 17,500,020 0.00 19,830,647 13.32 19,227,563 -3.04 2.5

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 8,105,818 8,413,505 3.80 8,050,551 -4.31 13,337,503 65.67 12,745,836 -4.44 12.0
Technical 784,693 770,767 -1.77 759,702 -1.44 779,240 2.57 675,286 -13.34 -3.7
Sales and Promotion 1,142,482 1,012,207 -11.40 1,447,194 42.97 1,309,950 -9.48 1,131,422 -13.63 -0.2
Administration and General 1,549,283 1,221,759 -21.14 1,280,005 4.77 1,388,146 8.45 1,476,988 6.40 -1.2
Total Expenses 11,582,276 11,418,238 -1.42 11,537,452 1.04 16,814,839 45.74 16,029,532 -4.67 8.5

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 5,813,865 6,081,198 5,962,568 3,015,808 3,198,031
Depreciation 1,196,891 413,975 -65.41 240,370 -41.94 305,120 26.94 339,104 11.14 -27.0
P.B.I.T. 4,616,974 5,667,223 5,722,198 2,710,688 2,858,927
Interest Expense 0 0 0 0 0
Adjustments - Gain (Loss) -510,282 -1,189,803 133.17 -1,201,723 1.00 -1,560,850 29.88 -3,365,879 115.64
Pre-tax Profit 4,106,692 4,477,420 4,520,475 1,149,838 -506,952

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 0 162,725 38,117 -76.58 3,112,951 >999± 2,492,571 -19.93
Script & concept 0 0 0 0 0
Filler Programming + Program Production 5,171,753 3,249,838 -37.16 3,538,039 8.87 1,821,862 -48.51 720,680 -60.44 -38.9
Investment in Programming 0 0 0 0 0
Total Canadian Programming 5,171,753 3,412,563 -34.02 3,576,156 4.79 4,934,813 37.99 3,213,251 -34.89 -11.2
Canadian Programming/Revenue (%) 29.73 19.50 20.44 24.88 16.71

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 1,507,323 605,951 -59.80 878,293 44.94 829,303 -5.58 122,680 -85.21 -46.6
Average Staff Count 8 6 -25.00 16 166.67 13 -18.75 1.79 -86.23
Avg Remuneration ($) 188,415 100,992 -46.40 54,893 -45.65 63,793 16.21 68,536 7.44 -22.3

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 6,344,010 6,344,010 0.00 6,137,846 -3.25 6,043,115 -1.54 5,830,980 -3.51 -2.1

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 33.4 34.8 34.1 15.2 16.6
P.B.I.T. Margin 26.5 32.4 32.7 13.7 14.9
Pre-tax Margin 23.6 25.6 25.8 5.8 -2.6

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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