system financial health round robin meetings. i.revenue & expense trends ii.employment profile...
TRANSCRIPT
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System Financial Health
Round Robin Meetings
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I. Revenue & Expense Trends
II. Employment Profile
III. Audience-based Revenue
IV. CSG and PBS Dues History
OUTLINE FOR SYSTEM FINANCIAL HEALTH SECTION
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$1.77$1.77$1.87
$1.79$1.71$1.66
$1.44$1.45
$1.93
1997 1998 1999 2000 2001 2002 2003 2004 2005
TOTAL SYSTEM REVENUES HAVE GROWN SLOWLY AND DECLINED RECENTLY
Public Television Revenues, 1997-2005
$ Billions
Source: AFR
Total Revenue Annual Growth Rate, 97-02: 5.9%*
* Compound Annual Growth Rate.
Total Revenue Annual Growth Rate, 02-05:
-2.8%*
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$1,409 $1,368$1,494 $1,506 $1,598 $1,566 $1,636 $1,570 $1,585
$0 $28
$78 $108$168
$198$189
$117 $120
1997 1998 1999 2000 2001 2002 2003 2004 2005
THOUGH CAPITAL FUNDS HAVE GROWN AT A FAST RATE, THEY HAVE PLAYED A SMALL ROLE IN TOTAL REVENUES
Public Television Revenues and Capital Funds Contributions, 1997-2005$ Millions
Source: AFR
Capital Funds 7.5 %
Annual Growth Rate*
Non-operational
Operational
Capital Funds
*Growth rate from ’99-’05
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5.5%
$291 $315
$77 $76$209
$233$71
$124$210
$180 $282
$109
$35
$410
$370
1997 2005
MEMBERSHIP, BUSINESS & STATE FUNDING HAVE ALL GROWN SLOWLY
Source: AFR
Total Operational Revenues, 1997 and 2005
$ Millions
Membership/Fundraising
Major Giving/Endowment**
Foundation
Businesses
Local/State
1.3%
33.0%
1.4%
1.0%
$1409
$1585
Growth Rate*
Total Operational Revenues 1.5%
* Inflation in this same period is 2.3% annually** Major giving growth rate is 1998-2005
Federal 5.8%
Other -6.4%
University -0.2%
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$256$124
$219$282
$354$315
$94$76
$451$410
$233
$255
$86
$109
$35
1997 2005
TOTAL FEDERAL FUNDING IS THE LARGEST SOURCE OF REVENUE THAT IS GROWING IN REAL DOLLARS
Source: AFR
Total System Revenues Indexed to 2005 CPI, 1997 and 2005
$ Millions$1714
Growth Rate
* Major giving growth rate is 1998-2005
$1585
2.9%
Membership/Fundraising
Major Giving/Endowment*Foundation
Businesses
Local/State
-1.2%
29.0%
-1.1%
-1.4%
Total Operational Revenues -1.0%
Federal 3.2%
Other -8.7%
University -2.6%
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8.7% 8.4%
7.4%
8.7%9.4%
8.8%9.4%
10.4%11.3%
1997 1998 1999 2000 2001 2002 2003 2004 2005
% of Total System Revenue that is CSG Funding, 1997 – 2005
Source: AFR, CPB
CSG FUNDING HAS ALSO BECOME AN INCREASINGLY IMPORTANT REVENUE SOURCE FOR STATIONS
$270 $250 $250 $300 $340 $350 $363 $378 $387
Total CPB Appropriation (in millions) after any rescissions
Appropriations (in millions) before rescission: 2003: $365; 2004: $380; 2005: $390
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THOUGH REVENUE HAS DECREASED RECENTLY, EXPENSES REMAIN FLAT
Total System Expenses vs. Total System Revenues, 1997 – 2005
$ BillionsTotal System Expenses
Total System Revenue
$1.43 $1.51$1.59
$1.71$1.78
$1.84 $1.83 $1.86 $1.87
$0.0
$0.5
$1.0
$1.5
$2.0
1997 1998 1999 2000 2001 2002 2003 2004 2005
Source: AFR
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THE MIX OF EXPENSES OVER TIME HAS STAYED CONSTANT DESPITE SHIFTING OPERATING AND ECONOMIC CONDITIONS
Source: AFR
Percent Station Expenses, 1990 to 2005
49% 48% 46%
16% 17% 16% 18% 19%
6% 5% 5% 5% 5%
17% 16% 16% 16% 17%
12% 14% 13% 13% 14%
48%49%
1990 2000 2001 2003 2005
Membership & Underwriting
Management & General
Program Information & Promotion
Broadcasting
Programming & Production
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10,81410,703 10,485 10,523 10,666 10,599 10,429
11,71911,167
10,590 10,510
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
EMPLOYMENT LEVELS HAVE RETURNED TO 1990s LEVELS
Public Television Full-time Employment, 1995-2005
Source: 1995-2002 AFR, 2003-2005 SABS
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Source: SABS
EMPLOYEES ARE CONCENTRATED IN PRODUCTION AND CONTENT, DELIVERY & DISTRIBUTION (CD&D)
0
1,000
2,000
3,000
4,000
FTEs per Functional Area, 2004-20052005
2004
Corp. Mgt & Support
Develop-ment
Auction Under-writing
Program-ming
Production CD&D Education & Outreach
Marketing/
CRM
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VIEWER AND DONOR NUMBERS ARE DECLINING AT THE SAME RATE
Nielsen Full Day Average Cumulative Households: Weekly (#) vs. Station Donors (#)
34,000,000
36,000,000
38,000,000
40,000,000
42,000,000
44,000,000
2003 2004 2005
# of
Hou
seho
lds
3,200,000
3,400,000
3,600,000
3,800,000
4,000,000
4,200,000
4,400,000
# of
Sta
tion
Don
ors
Weekly Cumulative (#) Station Donors (#)
Source: SABS
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‘Cost per Dollar’ depictions exclude any allocated costs from the Corporate Management and Support, and other station areas.
FUNDRAISING COSTS IN THE SYSTEM GREW SLIGHTLY FROM 2004 TO 2005.
$0.42
$0.24
$0.17
$0.27
$0.38
$0.63
$0.43
$0.28
$0.62
$0.39
$0.24$0.26
$0.00
$0.20
$0.40
$0.60
$0.80
2005
2004
Source: SABS
Membership (gifts < $1K)
Major Giving (gifts ≥ $1K)
Planned Giving (realized)
Spot/Run of Scheduling
Underwriting
Auction Average
Fundraising Cost per Dollar Raised, 2004-2005
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DESPITE CHALLENGES, PUBLIC TELEVISION HAS SEEN POSITIVE REVENUE GROWTH IN SEVERAL AREAS
• Foundation
Up 3% in real dollars (’97-’05)
• Major Giving
Up 29% in real dollars (’99-’05)
• Underwriting
Up slightly over the past three years to $233.4 million from $230.5 million
• Membership Giving
Average membership gift increase to $95/member in 2005 from $92/member in 2004
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$75
$125
$175
$225
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
SYSTEMWIDE, CSG FUNDING EXCEEDES PBS DUES
CSG Grant PBS Dues*
*PBS dues are NPS and MSA dues onlySource: CPB, PBS
System-wide CSG Grant and PBS Dues*, 1997 – 2007$ millions