Pay and Specialty - Encore Avenue

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
435413703 Encore Avenue Encore Avenue Ltd. Corus Entertainment Inc. Pay-TV (category A service) 2015

Revenue ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Residential/bulk/SMATV subscriber revenue 12,286,724 12,722,913 3.55 13,304,894 4.57 13,573,759 2.02 12,411,052 -8.57 0.3
DTH revenue 8,265,063 7,120,619 -13.85 7,071,288 -0.69 6,683,998 -5.48 5,977,685 -10.57 -7.8
Local advertising revenue 0 0 0 0 0
National advertising revenue 0 0 0 0 0
Other revenue 0 0 0 0 0
Total Revenue 20,551,787 19,843,532 -3.45 20,376,182 2.68 20,257,757 -0.58 18,388,737 -9.23 -2.7

Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Programming and Production 6,754,222 5,422,446 -19.72 5,299,175 -2.27 5,122,249 -3.34 4,751,067 -7.25 -8.4
Technical 1,401,271 1,293,898 -7.66 1,203,294 -7.00 1,113,366 -7.47 990,071 -11.07 -8.3
Sales and Promotion 435,969 332,408 -23.75 309,162 -6.99 277,503 -10.24 262,680 -5.34 -11.9
Administration and General 3,031,144 2,579,112 -14.91 2,239,719 -13.16 2,067,733 -7.68 1,051,071 -49.17 -23.3
Total Expenses 11,622,606 9,627,864 -17.16 9,051,350 -5.99 8,580,851 -5.20 7,054,889 -17.78 -11.7

Performance ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Income 8,929,181 10,215,668 11,324,832 11,676,906 11,333,848
Depreciation 0 511,597 563,839 10.21 491,452 -12.84 448,643 -8.71
P.B.I.T. 8,929,181 9,704,071 10,760,993 11,185,454 10,885,205
Interest Expense 127,440 140,919 10.58 152,166 7.98 185,053 21.61 174,275 -5.82
Adjustments - Gain (Loss) 1,669,115 1,135,344 -31.98 384,114 -66.17 645,049 67.93 866,829 34.38
Pre-tax Profit 10,470,856 10,698,496 10,992,941 11,645,450 11,577,759

Canadian Programming Expenses ($)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Acquisition of rights 891,586 975,318 9.39 746,494 -23.46 441,406 -40.87 275,524 -37.58 -25.4
Script & concept 8,593 38,233 344.93 38,198 -0.09 36,226 -5.16 29,476 -18.63 36.1
Filler Programming + Program Production 539,802 781,775 44.83 832,718 6.52 701,095 -15.81 888,953 26.79 13.3
Investment in Programming 1,437,948 -145,350 -110.11 0 -100.00 0 0 -100.0
Total Canadian Programming 2,877,929 1,649,976 -42.67 1,617,410 -1.97 1,178,727 -27.12 1,193,953 1.29 -19.7
Canadian Programming/Revenue (%) 14.00 8.31 7.94 5.82 6.49

Staff
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Total Remuneration ($) 1,904,419 1,827,776 -4.02 1,761,688 -3.62 1,141,217 -35.22 637,730 -44.12 -23.9
Average Staff Count 27 29 7.41 23 -20.69 27 17.39 31 14.81
Avg Remuneration ($) 70,534 63,027 -10.64 76,595 21.53 42,267 -44.82 20,572 -51.33 -26.5

Subscribers
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Subscribers 2,371,054 2,305,491 -2.77 2,249,940 -2.41 2,139,038 -4.93 1,997,353 -6.62 -4.2

Profitability (%)
2011 2012 Var % 2013 Var % 2014 Var % 2015 Var % CAGR (%)
Operating Margin 43.4 51.5 55.6 57.6 61.6
P.B.I.T. Margin 43.4 48.9 52.8 55.2 59.2
Pre-tax Margin 50.9 53.9 53.9 57.5 63.0

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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