Pay and Specialty - MUSIMAX

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
205417399 MUSIMAX MusiquePlus inc. Remstar Diffusion inc. Specialty (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 4,930,564 5,155,194 4.56 5,304,379 2.89 5,060,138 -4.60 5,913,618 16.87 4.7
DTH revenue 1,984,024 1,816,410 -8.45 2,056,686 13.23 1,424,966 -30.72 1,433,827 0.62 -7.8
Local advertising revenue 0 0 0 0 0
National advertising revenue 2,775,014 2,527,697 -8.91 2,261,393 -10.54 2,109,059 -6.74 1,494,329 -29.15 -14.3
Other revenue 0 0 0 0 1,351,308
Total Revenue 9,689,602 9,499,301 -1.96 9,622,458 1.30 8,594,163 -10.69 10,193,082 18.60 1.3

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 6,861,902 7,116,932 3.72 6,980,913 -1.91 6,813,604 -2.40 6,735,513 -1.15 -0.5
Technical 519,652 514,044 -1.08 537,678 4.60 534,997 -0.50 2,598,706 385.74 49.5
Sales and Promotion 470,290 356,539 -24.19 303,905 -14.76 347,087 14.21 2,024,376 483.25 44.0
Administration and General 1,437,339 1,455,105 1.24 1,532,019 5.29 1,207,061 -21.21 1,833,585 51.90 6.3
Total Expenses 9,289,183 9,442,620 1.65 9,354,515 -0.93 8,902,749 -4.83 13,192,180 48.18 9.2

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 400,419 56,681 267,943 -308,586 -2,999,098
Depreciation 210,335 178,567 -15.10 164,588 -7.83 159,700 -2.97 268,162 67.92 6.3
P.B.I.T. 190,084 -121,886 103,355 -468,286 -3,267,260
Interest Expense 0 0 0 0 -62,710
Adjustments - Gain (Loss) 0 0 0 0 750,000
Pre-tax Profit 190,084 -121,886 103,355 -468,286 -2,454,550

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 2,901,505 2,287,723 -21.15 2,697,123 17.90 2,112,968 -21.66 5,024,354 137.79 14.7
Script & concept 454,176 484,476 6.67 474,960 -1.96 481,128 1.30 0 -100.00 -100.0
Filler Programming + Program Production 2,242,165 2,986,137 33.18 2,619,123 -12.29 2,820,123 7.67 0 -100.00 -100.0
Investment in Programming 0 0 0 0 0
Total Canadian Programming 5,597,846 5,758,336 2.87 5,791,206 0.57 5,414,219 -6.51 5,024,354 -7.20 -2.7
Canadian Programming/Revenue (%) 57.77 60.62 60.18 63.00 49.29

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 4,634,999 4,845,530 4.54 4,652,892 -3.98 4,307,696 -7.42 4,596,595 6.71 -0.2
Average Staff Count 62 60 -3.23 56 -6.67 55 -1.79 60.5 10.00
Avg Remuneration ($) 74,758 80,759 8.03 83,087 2.88 78,322 -5.74 75,977 -2.99 0.4

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 2,071,372 1,949,084 -5.90 1,826,706 -6.28 2,114,360 15.75 1,950,429 -7.75 -1.5

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 4.1 0.6 2.8 -3.6 -29.4
P.B.I.T. Margin 2.0 -1.3 1.1 -5.4 -32.1
Pre-tax Margin 2.0 -1.3 1.1 -5.4 -24.1

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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