Profits up at post houses

Revenues were down, but overall profits rose among post-production houses in 2006, thanks mainly to falling expenses, according to numbers released Wednesday by Statistics Canada.

Operating revenues in the industry dipped to $822 million that year, down almost 2% from ’05, though this was offset by a 2.6% drop in operating expenses due mainly to a drop in cost of goods sold.

As a result, StatsCan says, the post sector saw profits totaling $53.1 million for the year, taking its profit margin to 6.5% from 5.8%.

Ontario firms continued to dominate the industry, accounting for almost half of all revenues, though shops in B.C. and Quebec were more profitable. The shops in B.C. and Alberta were also ‘among those showing the strongest growth in 2006, despite their small size.’ Alberta is home to barely 1% of the country’s post shops, but those in the province saw revenues rise a whopping 84% to $8.9 million, with margins approaching 11%.

Salaries, wages and benefits were also up across the sector by 12.4%, adding up to just over one-quarter of total expenses.