Pay and Specialty - OWN: The Oprah Winfrey Network (formerly OWN; formerly VIVA)

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
305417257 OWN: The Oprah Winfrey Network (formerly OWN; formerly VIVA) OWN Inc. Corus Entertainment Inc. Specialty (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 14,880,817 14,184,122 -4.68 14,449,890 1.87 14,611,236 1.12 16,823,415 15.14 3.1
DTH revenue 5,187,718 6,011,729 15.88 5,892,083 -1.99 5,540,076 -5.97 5,258,447 -5.08 0.3
Local advertising revenue 0 0 0 0 0
National advertising revenue 6,587,072 7,904,731 20.00 9,065,868 14.69 8,147,606 -10.13 6,180,705 -24.14 -1.6
Other revenue 43,235 95,114 119.99 96,063 1.00 203,023 111.34 338,105 66.54 67.2
Total Revenue 26,698,842 28,195,696 5.61 29,503,904 4.64 28,501,941 -3.40 28,600,672 0.35 1.7

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 9,328,566 13,721,076 47.09 18,593,690 35.51 20,562,282 10.59 21,342,152 3.79 23.0
Technical 501,084 484,888 -3.23 448,958 -7.41 413,858 -7.82 457,080 10.44 -2.3
Sales and Promotion 3,401,330 2,196,914 -35.41 644,463 -70.67 167,205 -74.06 205,850 23.11 -50.4
Administration and General 3,000,079 3,251,485 8.38 3,033,430 -6.71 2,631,514 -13.25 1,698,505 -35.46 -13.3
Total Expenses 16,231,059 19,654,363 21.09 22,720,541 15.60 23,774,859 4.64 23,703,587 -0.30 9.9

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 10,467,783 8,541,333 6,783,363 4,727,082 4,897,085
Depreciation 30,968 1,066,773 >999± 1,171,257 9.79 897,215 -23.40 809,775 -9.75 126.1
P.B.I.T. 10,436,815 7,474,560 5,612,106 3,829,867 4,087,310
Interest Expense 755,128 1,396,650 84.96 1,022,576 -26.78 1,233,990 20.67 1,126,024 -8.75
Adjustments - Gain (Loss) -1,198,481 1,146,331 -195.65 231,856 -79.77 1,511,952 552.11 1,574,724 4.15
Pre-tax Profit 8,483,206 7,224,241 4,821,386 4,107,829 4,536,010

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 4,848,839 5,199,645 7.23 6,247,421 20.15 5,730,767 -8.27 4,354,026 -24.02 -2.7
Script & concept 203,637 285,898 40.40 414,826 45.10 415,957 0.27 224,489 -46.03 2.5
Filler Programming + Program Production 619,309 884,924 42.89 893,038 0.92 735,081 -17.69 857,743 16.69 8.5
Investment in Programming 664,116 451,996 -31.94 103,600 -77.08 0 -100.00 1,225,283 16.6
Total Canadian Programming 6,335,901 6,822,463 7.68 7,658,885 12.26 6,881,805 -10.15 6,661,541 -3.20 1.3
Canadian Programming/Revenue (%) 23.73 24.20 25.96 24.15 23.29

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 1,758,669 1,323,255 -24.76 1,167,216 -11.79 744,411 -36.22 480,050 -35.51 -27.7
Average Staff Count 29 28 -3.45 24 -14.29 23 -4.17 25 8.70
Avg Remuneration ($) 60,644 47,259 -22.07 48,634 2.91 32,366 -33.45 19,202 -40.67 -25.0

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 5,967,663 6,219,356 4.22 6,157,269 -1.00 6,058,998 -1.60 6,066,765 0.13 0.4

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 39.2 30.3 23.0 16.6 17.1
P.B.I.T. Margin 39.1 26.5 19.0 13.4 14.3
Pre-tax Margin 31.8 25.6 16.3 14.4 15.9

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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