DAILY NEWS Aug 25, 2008 9:08 AM - 0 comments

StatsCan's 2007 Radio Report

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A new report says traditional radio is prospering in spite of new technologies such as satellite radio, online radio and portable digital players.

Statistics Canada says advertising revenue among private radio broadcasters advanced six per cent to $1.5 billion in 2007.

That's the third time in five years radio advertising growth has outpaced advertising market growth as a whole.

And private radio reported 19.8 cents of profit per dollar of revenue last year before interest and taxes - that's the industry's third best result in 30 years, after 2006 and 2005.

FM radio generated 78.3 per cent of advertising revenues and 94.6 per cent of profits before interest and taxes last year.

StatsCan attributes private radio's recent financial successes largely to economic growth and industry restructuring.

It says regulatory changes in 1998 allowed for greater concentration of ownership, which helped radio withstand the competition from other media.

The industry also rationalized its operations by transferring AM stations to the generally more popular and more profitable FM band.

Furthermore, radio stations operating in the five largest census metropolitan areas last year generated almost twice as much profit before interest and taxes per dollar of revenue as stations operating in smaller markets.
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