Pay and Specialty - VRAK.TV

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
214301111 VRAK.TV 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 15,678,859 15,406,926 -1.73 15,941,743 3.47 15,072,296 -5.45 16,207,297 7.53 0.8
DTH revenue 5,537,634 6,536,241 18.03 6,169,147 -5.62 6,152,281 -0.27 5,124,421 -16.71 -1.9
Local advertising revenue 0 0 0 0 0
National advertising revenue 6,638,973 5,841,903 -12.01 6,485,335 11.01 5,411,604 -16.56 4,772,048 -11.82 -7.9
Other revenue 0 0 0 0 23,707
Total Revenue 27,855,466 27,785,070 -0.25 28,596,225 2.92 26,636,181 -6.85 26,127,473 -1.91 -1.6

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 12,059,204 12,444,596 3.20 12,665,426 1.77 14,438,467 14.00 15,091,964 4.53 5.8
Technical 933,319 853,156 -8.59 959,665 12.48 385,104 -59.87 484,299 25.76 -15.1
Sales and Promotion 1,727,313 1,856,483 7.48 2,590,980 39.56 2,579,854 -0.43 2,403,299 -6.84 8.6
Administration and General 1,714,225 1,757,566 2.53 1,986,125 13.00 2,191,621 10.35 1,200,833 -45.21 -8.5
Total Expenses 16,434,061 16,911,801 2.91 18,202,196 7.63 19,595,046 7.65 19,180,395 -2.12 3.9

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 11,421,405 10,873,269 10,394,029 7,041,135 6,947,078
Depreciation 90,681 93,869 3.52 221,238 135.69 448,083 102.53 741,043 65.38 69.1
P.B.I.T. 11,330,724 10,779,400 10,172,791 6,593,052 6,206,035
Interest Expense 0 0 0 61,672 104,160 68.89
Adjustments - Gain (Loss) 254,798 234,797 -7.85 166,583 -29.05 5,878 -96.47 -176,278 >999±
Pre-tax Profit 11,585,522 11,014,197 10,339,374 6,537,258 5,925,597

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 7,539,246 8,169,890 8.36 7,946,878 -2.73 8,662,211 9.00 9,624,267 11.11 6.3
Script & concept 165,567 81,750 -50.62 151,408 85.21 238,061 57.23 167,148 -29.79 0.2
Filler Programming + Program Production 1,829,175 1,637,048 -10.50 1,901,632 16.16 3,015,602 58.58 2,591,288 -14.07 9.1
Investment in Programming 0 0 0 0 0
Total Canadian Programming 9,533,988 9,888,688 3.72 9,999,918 1.12 11,915,874 19.16 12,382,703 3.92 6.8
Canadian Programming/Revenue (%) 34.23 35.59 34.97 44.74 47.39

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 3,085,993 3,043,413 -1.38 3,166,811 4.05 2,357,267 -25.56 2,897,658 22.92 -1.6
Average Staff Count 26 29 11.54 29 0.00 23 -20.69 28 21.74
Avg Remuneration ($) 118,692 104,945 -11.58 109,200 4.05 102,490 -6.15 103,488 0.97 -3.4

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 2,504,363 2,381,782 -4.89 2,200,643 -7.61 2,051,898 -6.76 2,107,727 2.72 -4.2

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 41.0 39.1 36.3 26.4 26.6
P.B.I.T. Margin 40.7 38.8 35.6 24.8 23.8
Pre-tax Margin 41.6 39.6 36.2 24.5 22.7

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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