Vancouver’s radio market was not immune to the challenges facing the media last year as profits fell almost 70% decline for AM stations and 34% for FM stations.
A drop in advertising revenue was the main culprit of the decline. The Canadian Radio-television and Telecommunications Commission (CRTC) reported that revenue in the Vancouver market declined 10.5% to $118.2 million in 2009 from $130.7 million in 2008.
Revenue from local advertising fell 11% to $85.8 million from $96.4 million, while revenue from national advertising dropped 7.8% to $28.2 million from $30.6 million. Those declines were offset by an increase in syndication and other revenue.
The revenue drop for FM radio stations was slightly higher than their AM counterparts. Total revenue from FM stations fell 9.6% to $78.9 million from $87.3 million; revenue from AM stations dropped 9.2% to $39.3 million from $43.3 million.
Overall, AM stations recorded a pre-tax profit of $1.36 million, down 69.1% from $4.4 million in 2008. FM radio stations reported a 33.6% decline in pre-tax profit to $23.1 million from $34.8 million.
Vancouver’s stations suffered more than the national average, with a 5.2% decline in revenue and an average 17.8% drop in profit.