Pay and Specialty - The Sports Network (TSN)

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
314600537 The Sports Network (TSN) The Sports Network Inc. BCE Inc. Specialty (category C service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 112,813,081 185,770,758 64.67 216,353,607 16.46 256,171,363 18.40 250,182,832 -2.34 22.0
DTH revenue 34,254,957 55,738,143 62.72 62,900,532 12.85 77,279,671 22.86 70,117,773 -9.27 19.6
Local advertising revenue 0 0 0 0 0
National advertising revenue 129,582,617 133,180,289 2.78 120,704,444 -9.37 118,645,699 -1.71 122,478,121 3.23 -1.4
Other revenue 12,749,039 144,521 -98.87 434,897 200.92 91,151 -79.04 61,582 -32.44 -73.6
Total Revenue 289,399,694 374,833,711 29.52 400,393,480 6.82 452,187,884 12.94 442,840,308 -2.07 11.2

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 167,091,606 272,170,110 62.89 235,182,618 -13.59 282,051,564 19.93 278,488,788 -1.26 13.6
Technical 5,939,227 930,329 -84.34 1,218,641 30.99 1,272,285 4.40 2,905,161 128.34 -16.4
Sales and Promotion 16,065,902 16,410,445 2.14 15,488,273 -5.62 16,841,223 8.74 16,230,402 -3.63 0.3
Administration and General 15,363,935 15,593,200 1.49 19,702,712 26.35 19,068,717 -3.22 20,627,069 8.17 7.6
Total Expenses 204,460,670 305,104,084 49.22 271,592,244 -10.98 319,233,789 17.54 318,251,420 -0.31 11.7

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 84,939,024 69,729,627 128,801,236 132,954,095 124,588,888
Depreciation 2,735,050 7,933,517 190.07 5,765,857 -27.32 6,957,721 20.67 8,361,693 20.18 32.2
P.B.I.T. 82,203,974 61,796,110 123,035,379 125,996,374 116,227,195
Interest Expense 25,228,806 25,253,030 0.10 25,213,408 -0.16 25,309,175 0.38 25,511,133 0.80
Adjustments - Gain (Loss) 1,353,215 444,352 -67.16 4,519,565 917.11 2,795,593 -38.14 9,225,623 230.01
Pre-tax Profit 58,328,383 36,987,432 102,341,536 103,482,792 99,941,685

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 69,218,379 96,815,920 39.87 62,648,471 -35.29 103,461,482 65.15 114,292,946 10.47 13.4
Script & concept 0 0 0 0 0
Filler Programming + Program Production 70,928,036 89,407,461 26.05 86,883,848 -2.82 98,414,292 13.27 108,037,944 9.78 11.1
Investment in Programming 0 0 0 0 0
Total Canadian Programming 140,146,415 186,223,381 32.88 149,532,319 -19.70 201,875,774 35.00 222,330,890 10.13 12.2
Canadian Programming/Revenue (%) 48.43 49.68 37.35 44.64 50.21

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 20,287,941 22,518,305 10.99 23,098,468 2.58 24,534,798 6.22 28,384,076 15.69 8.8
Average Staff Count 199 214 7.54 218 1.87 224 2.75 241 7.59
Avg Remuneration ($) 101,949 105,226 3.21 105,956 0.69 109,530 3.37 117,776 7.53 3.7

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 9,003,852 9,190,812 2.08 9,069,491 -1.32 9,050,153 -0.21 8,798,198 -2.78 -0.6

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 29.4 18.6 32.2 29.4 28.1
P.B.I.T. Margin 28.4 16.5 30.7 27.9 26.2
Pre-tax Margin 20.2 9.9 25.6 22.9 22.6

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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