Results and Outlook

OPERATING EXPENSES

(in thousands of Canadian dollars) For the year ended March 31 2015 2014 % change Television, radio and digital services costs English Services 939,164 1,038,297 (9.5) French Services 683,670 723,926 (5.6) 1,622,834 1,762,223 (7.9) Transmission, distribution and collection 71,758 71,959 (0.3) Corporate management 9,823 10,741 (8.5) Payments to private stations 2,386 2,364 0.9 Finance costs 30,574 30,870 (1.0) Share of results in associate (15,083) (4,440) N/M TOTAL 1,722,292 1,873,717 (8.1) N/M = not meaningful

The following paragraphs explain the operating expenses decrease of $151.4 million (8.1%) in 2014-2015 compared to last fiscal year.

Television, radio and digital services

English Services’ and French Services’ expenditures decreased by $99.1 million (9.5%) and $40.3 million (5.6%) respectively.

In 2013-2014, costs were higher because they included the coverage of the Sochi 2014 Olympic Winter Games. The impact of successful cost-reduction initiatives implemented across the Corporation also contributed to the lower expenditures in 2014-2015. In addition, English Services’ costs reflect the lower production spending following the end of our agreement with the NHL in June 2014.

This overall decrease was partly offset by higher production costs from broadcasting the 2014 FIFA World Cup Brazil last summer and by the recognition of severance costs across the Corporation following restructuring announcements in June and November 2014, and March 2015.

Other operating expenses

The decrease of $0.9 million (8.5%) in corporate management expenses was also mainly due to cost-reduction initiatives in 2014-2015.

The increase in the share of results in associate line of $10.6 million was mainly attributable to the receipt of a special dividend from SiriusXM of $10.4 million on June 19, 2014.