Pay and Specialty - Discovery Velocity (formerly Discovery World HD)

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
535421250 Discovery Velocity (formerly Discovery World HD) 2953285 Canada Inc. BCE Inc. Specialty (category B service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 16,973,777 18,110,093 6.69 17,609,321 -2.77 17,141,791 -2.66 15,466,654 -9.77 -2.3
DTH revenue 9,840,390 8,752,779 -11.05 8,258,799 -5.64 7,630,502 -7.61 7,523,820 -1.40 -6.5
Local advertising revenue 0 0 0 0 0
National advertising revenue 330,624 276,884 -16.25 428,993 54.94 585,057 36.38 1,118,125 91.11 35.6
Other revenue 0 0 0 0 0
Total Revenue 27,144,791 27,139,756 -0.02 26,297,113 -3.10 25,357,350 -3.57 24,108,599 -4.92 -2.9

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 9,792,369 8,516,933 -13.02 8,611,387 1.11 8,234,488 -4.38 8,126,196 -1.32 -4.6
Technical 594,657 282,453 -52.50 423,697 50.01 424,473 0.18 449,852 5.98 -6.7
Sales and Promotion 1,871,278 853,702 -54.38 862,491 1.03 827,360 -4.07 829,875 0.30 -18.4
Administration and General 989,642 1,058,764 6.98 1,489,026 40.64 1,208,642 -18.83 1,287,236 6.50 6.8
Total Expenses 13,247,946 10,711,852 -19.14 11,386,601 6.30 10,694,963 -6.07 10,693,159 -0.02 -5.2

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 13,896,845 16,427,904 14,910,512 14,662,387 13,415,440
Depreciation 123,157 395,317 220.99 361,515 -8.55 361,531 0.00 383,102 5.97 32.8
P.B.I.T. 13,773,688 16,032,587 14,548,997 14,300,856 13,032,338
Interest Expense 0 19 75 294.74 36 -52.00 0 -100.00
Adjustments - Gain (Loss) 0 0 0 0 0
Pre-tax Profit 13,773,688 16,032,568 14,548,922 14,300,820 13,032,338

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 2,370,172 2,782,019 17.38 2,935,582 5.52 3,637,590 23.91 3,611,404 -0.72 11.1
Script & concept 25,000 10,000 -60.00 20,500 105.00 9,892 -51.75 19,503 97.16 -6.0
Filler Programming + Program Production 2,775,263 874,296 -68.50 462,002 -47.16 342,935 -25.77 676,101 97.15 -29.8
Investment in Programming 0 0 0 0 0
Total Canadian Programming 5,170,435 3,666,315 -29.09 3,418,084 -6.77 3,990,417 16.74 4,307,008 7.93 -4.5
Canadian Programming/Revenue (%) 19.05 13.51 13.00 15.74 17.87

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 183,879 201,402 9.53 202,822 0.71 195,391 -3.66 213,796 9.42 3.8
Average Staff Count 2.5 2.5 0.00 2.5 0.00 2.5 0.00 2.5 0.00
Avg Remuneration ($) 73,552 80,561 9.53 81,129 0.71 78,156 -3.66 85,518 9.42 3.8

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 1,442,292 1,493,112 3.52 1,320,604 -11.55 1,228,798 -6.95 1,142,436 -7.03 -5.7

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 51.2 60.5 56.7 57.8 55.6
P.B.I.T. Margin 50.7 59.1 55.3 56.4 54.1
Pre-tax Margin 50.7 59.1 55.3 56.4 54.1

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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