BUSINESS
11/01/2011 08:50 EDT | Updated 01/01/2012 05:12 EST

Canadian TV Advertising Revenue Sees Largest Increase In 7 Years: StatsCan

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OTTAWA - Operating revenues in the television broadcasting sector reached $7.1 billion in 2010, up eight per cent from 2009 and the largest annual increase since 2003.

Statistics Canada reports TV advertising revenues grew 9.2 per cent last year to $3.4 billion, close to 2008 revenues, before the economic slowdown.

The agency says that increase comes on the heels of an 8.3 per cent drop in ad revenues in 2009, their first decline in 15 years.

While private conventional television operating revenues rose 8.8 per cent to $2.2 billion in 2010, they remained below their peak in 2007.

Private conventional television posted a profit margin before interest and taxes of 0.2 per cent last year to $5.4 million in profits before interest and taxes, reversing a $113.4-million loss in 2009.

Pay and specialty television continued its upward trend in 2010, with operating revenues increasing 11.1 per cent to $3.5 billion.

The profit margin before interest and taxes of the pay and specialty television segments rose to 25.4 per cent in 2010, for profits before interest and taxes of $877.3 million.