According to statistics released by the CRTC, strong ad figures combined with higher subscriber revenues last year led the specialty sector to a profit (before interest and taxes) of $549.6 million, up from $531.1 million. Local and national advertising rose to a combined $1.02 billion for the broadcast year ended Aug. 31, 2008, up from $948.4 million, with national advertising making the greatest gains. The majority of the ad revenue flowed to the lucrative analog channels, such as TSN, YTV and Teletoon.

The ad revenues were topped by subscriber revenues, however, which totaled $1.27 billion. Subscribers were also on the upswing in ’08, up 5.3% to $878.9 million in cable, and 5.7% to $387.8 million in satellite.

Among conventional broadcasters, national advertising sales declined from $1.5 billion to $1.4 billion in 2008, contributing to a 90% drop in profits. These numbers do not reflect the full force of the ad slump, however, which gained steam in the fall.

Specialty and pay-TV made a combined $2.9 billion in ’08, up 7.6%. PBIT rose 5.9% to $686.1 million. Expenses were up – but just slightly – to $2.2 billion from $2 billion, and spending on Canadian programming topped the $1-billion mark for the first time, up 11.3% to $1.1 billion. Spending on foreign programs was up 9.1% to $361.1 million.