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Operating profit and profit margins of TV commercial production businesses in Australia, 1996/97, 1999/00 and 2002/03

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ABS data indicates that businesses that generated the majority of their income from commercial production have experienced an overall decline in both operating profit and profit margins between 1996/97 and 2002/03.

In the 2004 AFC survey of commercial production companies, a significant proportion of companies (43 per cent) reported a decrease in profit margins in the 2003/04 financial year. Most other companies felt there had been little change over the previous two years, while a small proportion felt profit margins had increased.

Graph: Operating profit and profit margins of commercial production businesses in Australia. Table following provides the data..

1996/97 1999/00 2002/03 % change 96/97 to 02/03
Film and video production industry
Operating profit -56.4 ^76.5 ^91.7 139%
Profit margin -4.9% ^5.4% ^5.9%
TV commercial production
Operating profit ^27.8 ^20.6 ^18.3 -34%
Profit margin 10.7% 10.7% 7.7%

Source: Australian Bureau of Statistics (ABS), unpublished data from Television, Film and Video Production, 2002/03 (cat. no. 8679.0), Film and Video Production and Distribution 1999/2000 (cat. no. 8679.0) and Film and Video Production and Distribution 1996/97 (cat. no. 8679.0).

Notes:
n.a. Not available.
^ Estimate has a relative standard error of 10–25 per cent and should be used with caution.
* Estimate has a relative standard error of 25–50 per cent and should be used with caution.

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