Pay and Specialty - Northwestel Inc., Yellowknife

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
535427878 Northwestel Inc., Yellowknife Northwestel Inc. BCE Inc. Video-on-Demand 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 782,133 896,614 14.64 819,178 -8.64 775,188 -5.37 799,605 3.15 0.6
DTH revenue 0 0 0 0 0
Local advertising revenue 111,916 122,808 9.73 115,250 -6.15 74,714 -35.17 67,262 -9.97 -12.0
National advertising revenue 0 0 0 0 0
Other revenue 0 0 0 0 0
Total Revenue 894,049 1,019,422 14.02 934,428 -8.34 849,902 -9.05 866,867 2.00 -0.8

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 648,595 660,845 1.89 465,585 -29.55 431,162 -7.39 552,422 28.12 -3.9
Technical 0 0 197,483 323,468 63.80 224,172 -30.70
Sales and Promotion 87,808 87,220 -0.67 51,644 -40.79 21,754 -57.88 38,064 74.97 -18.9
Administration and General 54,100 54,100 0.00 130,952 142.06 116,661 -10.91 240,822 106.43 45.3
Total Expenses 790,503 802,165 1.48 845,664 5.42 893,045 5.60 1,055,480 18.19 7.5

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 103,546 217,257 88,764 -43,143 -188,613
Depreciation 243,187 243,187 0.00 81,467 -66.50 114,981 41.14 164,178 42.79 -9.4
P.B.I.T. -139,641 -25,930 7,297 -158,124 -352,791
Interest Expense 0 0 0 12,899 18,417 42.78
Adjustments - Gain (Loss) 0 0 0 0 0
Pre-tax Profit -139,641 -25,930 7,297 -171,023 -371,208

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 12,385 20,221 63.27 0 -100.00 0 0 -100.0
Script & concept 64,131 54,037 -15.74 0 -100.00 0 0 -100.0
Filler Programming + Program Production 351,025 298,638 -14.92 0 -100.00 0 0 -100.0
Investment in Programming 0 0 465,585 0 -100.00 0
Total Canadian Programming 427,541 372,896 -12.78 465,585 24.86 0 -100.00 0 -100.0
Canadian Programming/Revenue (%) 47.82 36.58 49.83 0.00 0.00

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 178,030 178,030 0.00 286,266 60.80 298,607 4.31 217,621 -27.12 5.2
Average Staff Count 1.5 1.5 0.00 1.85 23.33 1.85 0.00 2 8.11
Avg Remuneration ($) 118,687 118,687 0.00 154,738 30.38 161,409 4.31 108,811 -32.59 -2.2

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 11.6 21.3 9.5 -5.1 -21.8
P.B.I.T. Margin -15.6 -2.5 0.8 -18.6 -40.7
Pre-tax Margin -15.6 -2.5 0.8 -20.1 -42.8

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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