Pay and Specialty - W Network

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
415413806 W Network W Network 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 23,591,545 22,521,445 -4.54 22,325,812 -0.87 20,739,105 -7.11 20,110,221 -3.03 -3.9
DTH revenue 8,695,246 8,048,896 -7.43 6,930,451 -13.90 7,038,076 1.55 7,126,427 1.26 -4.9
Local advertising revenue 0 0 0 0 0
National advertising revenue 54,029,550 56,825,514 5.17 61,223,657 7.74 52,869,152 -13.65 51,937,166 -1.76 -1.0
Other revenue 760,275 697,028 -8.32 702,719 0.82 760,975 8.29 688,354 -9.54 -2.5
Total Revenue 87,076,616 88,092,883 1.17 91,182,639 3.51 81,407,308 -10.72 79,862,168 -1.90 -2.1

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 31,831,706 33,930,226 6.59 35,268,781 3.95 34,194,697 -3.05 36,551,418 6.89 3.5
Technical 1,011,163 870,133 -13.95 793,286 -8.83 740,544 -6.65 665,035 -10.20 -10.0
Sales and Promotion 6,462,997 6,659,736 3.04 6,350,570 -4.64 3,076,724 -51.55 2,874,534 -6.57 -18.3
Administration and General 9,971,807 9,055,706 -9.19 7,231,723 -20.14 4,925,170 -31.89 2,303,951 -53.22 -30.7
Total Expenses 49,277,673 50,515,801 2.51 49,644,360 -1.73 42,937,135 -13.51 42,394,938 -1.26 -3.7

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 37,798,943 37,577,082 41,538,279 38,470,173 37,467,230
Depreciation 6,172 1,844,514 >999± 2,030,597 10.09 1,376,073 -32.23 1,256,629 -8.68 277.7
P.B.I.T. 37,792,771 35,732,568 39,507,682 37,094,100 36,210,601
Interest Expense 363,825 445,801 22.53 460,258 3.24 420,307 -8.68 296,689 -29.41
Adjustments - Gain (Loss) -22,484,343 1,108,884 -104.93 781,774 -29.50 1,827,800 133.80 2,759,577 50.98
Pre-tax Profit 14,944,603 36,395,651 39,829,198 38,501,593 38,673,489

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 21,352,968 22,574,939 5.72 25,235,727 11.79 24,901,786 -1.32 23,621,192 -5.14 2.6
Script & concept 354,116 529,707 49.59 561,818 6.06 786,740 40.03 1,097,824 39.54 32.7
Filler Programming + Program Production 1,435,003 2,135,715 48.83 2,262,570 5.94 1,936,555 -14.41 1,958,050 1.11 8.1
Investment in Programming 1,465,813 1,420,861 -3.07 398,250 -71.97 439,985 10.48 2,739,602 522.66 16.9
Total Canadian Programming 24,607,900 26,661,222 8.34 28,458,365 6.74 28,065,066 -1.38 29,416,668 4.82 4.6
Canadian Programming/Revenue (%) 28.26 30.26 31.21 34.47 36.83

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 6,062,828 3,693,609 -39.08 2,032,621 -44.97 1,602,619 -21.16 864,914 -46.03 -38.5
Average Staff Count 78 71 -8.97 58 -18.31 46 -20.69 58 26.09
Avg Remuneration ($) 77,729 52,023 -33.07 35,045 -32.63 34,840 -0.59 14,912 -57.20 -33.8

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 8,387,168 8,403,260 0.19 8,278,673 -1.48 7,928,149 -4.23 7,692,408 -2.97 -2.1

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 43.4 42.7 45.6 47.3 46.9
P.B.I.T. Margin 43.4 40.6 43.3 45.6 45.3
Pre-tax Margin 17.2 41.3 43.7 47.3 48.4

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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