Cable companies are doing very well, thankyouverymuch
The CRTC today reported that profits for Canada’s cable providers (like Shaw, Rogers, etc.) continue to earn very strong margins — and earned a BILLION dollars more last year than it did in 2006.
Total revenues for all cable companies combined jumped by more than 16% over the previous year (2006). That added an additional BILLION dollars into their hands as the total rose from $6.1 billion to $7.1 billion. The number of basic-cable subscribers increased by a little — about 2.3% increase in customers.
But as for their profit margins (a much more illustrative metric) Canada’s cable companies continue to bank a lot of cash. Their profit margins last year were at 21.7% in 2006. With those kind of returns, I should drop my conservative (12%) RRSP investments!
In 2007, cable companies employed 17,900 people and paid a total of $1.07 billion in salaries. In comparison, in 2006 these companies employed 15,271 people and paid out $933.1 million in salaries.
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Is anyone doing the math? In 2007 the average wage was $59,776 per year; in 2006 it was $61,102.
So, greater profits for the company, lower salaries for the workers. What a great place to work!
–Bob.
WOW – if private enterprise EARNS 1 $Billion, Tod puts it in caps – a BILLION. If CBC takes $1Billion a year from taxpayers, Tod encourages me to stop reminding the blog; even in lower case.
Is it somehow a bad thing when private companies earn a profit Tod? You’re spinning it like cable companies should be ashamed of making a profit. As an employee, shareholder, and/or Canadian I am very pleased for private industry to be healthy. Your socialism is showing!
This is a problem in a nation built as much by the public sector as by the private companies?
I think there’s a pretty significance difference between taking in an *additional* billion dollars in revenue and “earning” it, Mike. How much better is your cable service than it was a year ago? How much more new infrastructure have the cablecos built? How much have they improved their technology?
It would appear that you really enjoy giving Ted Rogers and Jim Shaw more of *your* money. Presuming you have cable, you probably pay more for it in two or three weeks than you do for an entire year of CBC/Radio-Canada service – which is available on TV, radio and the ‘Net, 24/7/365 and in both official languages (and don’t forget the eight or nine aboriginal languages and foreign-language services on RCI).
Thanks for making my point Keith. In fact, I don’t subscribe to cable. You see, customers get a choice in private industry. The ultimate choice is to purchase or not. In this case I’m just as happy to hava a healthy private industry even though I choose not to purchase their service. In the socialist model, elites get together to decide what they unwashed masses will watch/hear/think and then charge everyone regardless of their willingness.