Special Broadcasting Service
Corporation
Entity resources and planned
performance
121
SPECIAL BROADCASTING SERVICE CORPORATION
Section 1: Agency overview and resources ........................................................... 125
1.1
Strategic direction statement ........................................................................ 125
1.2
Agency resource statement .......................................................................... 127
1.3
Budget measures .......................................................................................... 128
Section 2: Outcomes and planned performance ................................................... 129
2.1
Outcomes and performance information ...................................................... 129
Section 3: Explanatory tables and budgeted financial statements ..................... 135
3.1
Explanatory tables ........................................................................................ 135
3.2
Budgeted financial statements...................................................................... 136
123
SBS Budget Statements
SPECIAL BROADCASTING SERVICE CORPORATION
Section 1: Agency overview and resources
1.1 STRATEGIC DIRECTION STATEMENT
The Special Broadcasting Service Corporation (SBS) is a national broadcasting service
that provides multicultural and multilingual services that inform, educate and
entertain all Australians. Its mission is to contribute to a more cohesive, equitable and
harmonious Australia through its television, radio and digital media services. SBS’s
functions are guided by its Charter (in Section 6 of the Special Broadcasting Service
Act 1991).
SBS’s Charter, hybrid funding model, multiplatform content offering, and breadth of
in-language content sets SBS apart from broadcasters in Australia and the world.
SBS seeks to inspire social cohesion amongst our many cultures by exploring and
celebrating both our rich diversity and those common threads that make us uniquely
Australian.
SBS will strive to create and commission content which explores these issues in a way
that captures the interest and imagination of as many Australians as possible. SBS will
exploit all of its platforms: free-to-air and subscription television, radio and online,
while exploring other means of reaching audiences in partnership with other platform
providers.
SBS will acquire the best programming from around the world and where it is in a
language other than English, make it accessible through English language subtitling.
With extensive access to international and local programme makers and suppliers, SBS
programmes are culturally and linguistically diverse – over half of the programming
on SBS ONE and SBS 2 main channel service is in-language.
As part of the SBS family, the National Indigenous Television service (NITV) is
broadcast free-to-air with national coverage, including through the Viewer Access
Satellite Television (VAST) service. NITV is an important platform for the celebration
of the unique languages and culture of Indigenous Australians, produced by
Indigenous Australians, and now available to every Australian household.
The SBS radio service broadcasts a broad range of languages that reflect Australia’s
significant cultural diversity on a network which includes two frequencies in Sydney,
Melbourne, Canberra and Wollongong, as well as a national signal in the other capital
cities, major regional centres and a number of transmitters servicing regional and
remote areas.
SBS also has a significant online presence with news, sport and entertainment sites
related to SBS programming. SBS will focus this year on continuing to expand its
125
SBS Budget Statements
SBS On Demand proposition to provide a comprehensive catch-up opportunity and
expanded content offer to reflect changes in audience consumption patterns.
SBS will continue to focus on improving service delivery to the largest language
groups while also tailoring specific services to small groups with high needs. SBS will
also seek to improve the quality of its audio services on radio and online.
In a world where audience choice continues to multiply, SBS continues to make a vital
difference to Australia’s cultural and media landscape. The network’s unique position
in the industry allows it to present compelling, distinctive and thought-provoking
content that no other Australian media organisation will provide. Some of that content
will be targeted to the needs of particular groups or communities, whether by
language or subject matter. Other content will be of broader general appeal. SBS will
leverage a multiplatform experience for all Australians across the genres for which
we’ve established an esteemed reputation: news and current affairs; football; cycling;
documentary; food; and film.
Faster broadband speeds will create opportunities for communities to engage with
content created by SBS and user generated content from culturally and linguistically
diverse (CALD) communities and individuals within them. Through established links
with CALD communities, SBS will actively engage these groups to understand their
needs and facilitate their participation in Australian social and political discourse. It
will seek to lead debate and exploration of issues concerning multiculturalism,
diversity and social cohesion.
In an increasingly competitive market, SBS will continue to explore commercial
opportunities consistent with the Special Broadcasting Service Act 1991 to generate
returns that support the creation and commissioning of distinctive Australian content.
SBS will also continue its determined focus on improving workflows and finding more
efficient ways to run its operations in order to direct as much of its available resources
to the creation of content that delivers on the purpose of the organisation.
126
SBS Budget Statements
1.2 AGENCY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome.
Table 1.1: Special Broadcasting Service Corporation resource statement Budget estimates for 2015-16 as at Budget May 2015
Actual
Available
Appropriation
2014-15
Proposed at
2015-16
Budget
Total
2015-15
estimate
$'000
Estimate of
prior year
amounts
available in
2015-16
$'000
$'000
$'000
12,048
5,025
-
5,025
283,270
283,270
Opening balance/Reserves at bank
REVENUE FROM GOVERNMENT
Ordinary annual services (a)
Outcome 1
285,859
Total ordinary annual services
285,859
-
283,270
283,270
Total annual appropriations
285,859
-
283,270
283,270
Total funds from Government
FUNDS FROM OTHER SOURCES
Interest
Sale of goods and services
285,859
-
283,270
283,270
3,428
87,107
3,428
87,107
Total
110,774
-
90,535
90,535
408,681
5,025
373,805
378,830
Total net resourcing for entity
(a) Appropriation Bill (No.1) 2015-16
3,700
107,074
127
SBS Budget Statements
1.3 BUDGET MEASURES
There are no measures relating to the Special Broadcasting Service Corporation since
2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).
Part 2: 2014-15 MYEFO measures not previously reported in a portfolio
statement(a)
Expense Measures
Australian Broadcasting
Corporation and Special
Broadcasting Service
Corporation - additional
efficiency savings (b)
Departmental expenses
Total
Communications and Public
Affairs Functions targeted savings (c)
Departmental expenses
Total
Programme
2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
1.1
-
(4,200)
(10,300)
(13,700)
(15,020)
-
(4,200)
(10,300)
(13,700)
(15,020)
(65)
(65)
(128)
(128)
(128)
(128)
(129)
(129)
-
(65)
(4,328)
(10,428)
(13,829)
(15,020)
1.1
Total expense measures
Departmental
Total
(65)
(4,328) (10,428) (13,829) (15,020)
(a) A minus sign before an estimate indicates a reduction. No sign before an estimate indicates an
increase.
(b) This measure was published in MYEFO 2014-15 under the Communications Portfolio.
(c) This measure was published in the 2014-15 Budget under the Finance Portfolio, but had not been
attributed to individual agencies at that time
128
SBS Budget Statements
Section 2: Outcomes and planned performance
2.1 OUTCOMES AND PERFORMANCE INFORMATION
Government outcomes are the intended results, impacts or consequences of actions by
the Government on the Australian community. Commonwealth programmes are the
primary vehicle by which government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
Special Broadcasting Service Corporation in achieving government outcomes.
Outcome 1: Provide multilingual and multicultural services that inform,
educate and entertain all Australians and in so doing reflect Australia’s
multicultural society
Outcome 1 strategy
SBS has the following goals to achieve this Outcome:
Goal 1: To deepen Australians’ engagement with content that reflects our Charter
SBS’s objectives under this goal are:

To be a catalyst for the national discussion about multiculturalism and social
inclusion.

To create more multicultural and multilingual Australian content.

To improve the depth and quality of these multicultural and multilingual services.
Goal 2: To grow audiences
SBS’s objectives under this goal are:

For more Australians to use SBS services.

For Australians who use SBS services to use more of them and more often.

For more Australians of CALD backgrounds to use and value SBS language
services.
129
SBS Budget Statements
Changes in Programmes
Following the decision by Government to include transmission and distribution
funding as part of the SBS’ operational funding base, SBS transmission and
distribution appropriations are now combined into one single programme. The
changes to SBS Programmes are as follows:
2014-15 Budget Year (as published in
the Portfolio Budget Statement 2014-15)
2015-16 Budget Year
Programme 1.1 Television
Programme 1.1 SBS General
Operational Activities
Programme 1.2 Radio
Programme 1.3 Analog Transmission and
Distribution
Programme
1.4
Digital
Transmission and Distribution
Television
Programme 1.5 Digital Radio Transmission
and Distribution
130
Programme 1.2: SBS
Transmission and
Distribution Services
SBS Budget Statements
Table 2.1: Budgeted expenses for Outcome 1
2014-15
2015-16
Estimated actual
expenses
$'000
Estimated
expenses
$'000
196,729
95,662
195,036
90,178
292,391
285,214
Programme 1.2: SBS Transmission and Distribution
Services
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
89,130
88,234
Total for Programme 1.2
89,130
88,234
Outcome 1 totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
285,859
95,662
283,270
90,178
Total expenses for Outcome 1
381,521
373,448
Average staffing level (number)
2014-15
1,045
2015-16
1,020
Outcome 1:
Provide multilingual and multicultural
services that inform, educate and entertain all
Australians and in so doing reflect Australia’s
multicultural society
Programme 1.1: SBS General Operational Activities
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Revenues from other independent sources
Total for Programme 1.1
131
SBS Budget Statements
Contributions to Outcome 1
Programme 1.1: SBS General Operational Activities
Programme Objective
Delivering multilingual and multicultural television, radio and digital media
services that reflect Australia’s multicultural society and inspire all Australians to
explore and celebrate our diverse world, and in doing so promote social cohesion
amongst the many cultures of our nation.
Programme expenses 1.1
Annual departmental expenses:
Departmental item
Expenses not requiring appropriation in the
Budget year
Total programme expenses
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
196,729
195,036
186,331
183,645
186,122
95,662
90,178
94,946
108,237
103,271
292,391
285,214
281,277
291,882
289,393
Programme 1.1 Deliverables

Programmes aligned with Australia’s multicultural society and perspective.

Broadcasting in languages other than English.
Programme 1.1 Key Performance Indicators

Accessibility of programmes to all Australians.

Programme performance indicators as per the below table.
2014-15
Estimated
actual
2015-16
Budget
2016-17
Forward
estimate
2017-18
Forward
estimate
2018-19
Forward
estimate
Number of hours of TV programming
broadcast in languages other than
English
9,000hrs
9,000hrs
9,000hrs
9,000hrs
9,000hrs
Number of hours of programmes
subtitled
3,000hrs
3,000hrs
3,000hrs
3,000hrs
3,000hrs
107hrs
100hrs
80hrs
80hrs
80hrs
86%
86%
86%
86%
86%
Key Performance Indicators
Number of hours of locally commissioned
programmes broadcast (first run)
Percentage of Radio broadcasts in
Language other than English
132
SBS Budget Statements
Programme 1.2: SBS Transmission and Distribution Services
Programme Objective
To make SBS Television and Radio services available to all Australians
Programme expenses 1.2
2014-15
Estimated
actual
$'000
2015-16
Budget
89,130
89,130
Annual departmental expenses:
Departmental item
Total programme expenses
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
88,234
86,709
87,564
87,966
88,234
86,709
87,564
87,966
Programme 1.2 Deliverables

Maintaining and improving the availability of SBS’s digital transmissions.

Maintaining SBS’s radio analog transmissions

Extending the reach of SBS’s digital network.
Programme 1.2 Key Performance Indicators

Accessibility of programmes to all Australians.

Measure of fault free transmission time (by fault management system reported
daily and monthly, including but not limited to level of transmitter power).

Programme performance indicators as per the below table.
Key Performance Indicators
Population reach ‐ Digital
transmission sites
Availability of digital television
transmission services (fully
managed services)
Population reach for terrestrial
services
(excluding Satellite)
2014-15
Estimated
actual
2015-16
Budget
2016-17
Forward
estimate
2017-18
Forward
estimate
2018-19
Forward
estimate
96.00%
96.00%
96.00%
96.00%
96.00%
99.82%
99.82%
99.82%
99.82%
99.82%
96.00%
97.00%
97.00%
97.00%
97.00%
133
SBS Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015-16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses and
government indigenous expenditure.
3.1 EXPLANATORY TABLES
3.1.3 Australian Government Indigenous expenditure
Approp
Bill No.1
$'000
Total
approp
$'000
Special Broadcasting Service
Corporation
Outcome 1
Departmental 2015-16
Departmental 2014-15
18,209
17,599
18,209
17,599
Total outcome 1 2015-16
18,209
18,209
-
18,209
Total outcome 1 2014-15
17,599
17,599
-
17,599
18,209
17,599
18,209
17,599
18,209
17,599
18,209
17,599
-
18,209
17,599
18,209
17,599
Total Departmental 2015-16
Total Departmental 2014-15
Total AGIE 2015-16
Total AGIE 2014-15
135
Other
$'000
Total
$'000
Programme
18,209
17,599
1.1
1.1
SBS Budget Statements
3.2 BUDGETED FINANCIAL STATEMENTS
3.2.2 Analysis of budgeted financial statements
SBS’s predicted operating result for 2015-16 is a modest surplus of $0.4 million.
It should be noted that an efficiency savings measure of $53.7 million has been applied
to SBS funding from 2014-15.
Of the announced cuts of $53.7 million, $25.2 million was based on back-office
efficiency opportunities agreed as part of the Government’s Efficiency Study. A further
$28.5 million was predicated on successful legislative amendment to the SBS Act,
which would provide SBS with additional advertising and sponsorship flexibility and
allow SBS to deliver this portion of the funding cut via annual revenue increase. The
total funding cut of $53.7 million over five years from 2014-15 has already been
reflected in SBS’s forward estimates.
Revenue from own-source is budgeted at $90.6 million for 2015-16. This is largely
generated from sales of goods and services, the main component being advertising
revenue. The advertising revenue forecast in the estimates from 2015-16 to 2018-19
includes additional gross advertising and sponsorship revenue based on successful
legislative amendment to the SBS Act.
Without the passage of this legislation, SBS will be forced to implement cuts to its
programs and services, effective from 2015-16.
136
SBS Budget Statements
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of services) for
the period ended 30 June
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
123,908
245,224
12,250
139
381,521
120,702
239,837
12,843
66
373,448
121,909
233,195
12,826
56
367,986
123,128
244,699
11,597
22
379,446
124,359
241,882
11,118
377,359
85,193
3,700
1,089
4,688
1,312
95,982
95,982
285,539
81,476
3,428
1,116
4,073
484
90,577
90,577
282,871
86,184
3,428
1,148
4,199
452
95,411
95,411
272,575
99,382
3,428
1,155
4,329
445
108,739
108,739
270,707
94,256
3,428
1,188
4,461
412
103,745
103,745
273,614
Revenue from Government
285,859
Surplus/(deficit) attributable to the
Australian Government
320
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
Total comprehensive income/(loss)
320
Total comprehensive income/(loss)
attributable to the Australian
Government
320
Prepared on Australian Accounting Standards basis.
283,270
273,040
271,209
274,088
399
465
502
474
399
465
502
474
399
465
502
474
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Other expenses
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Interest
Rental income
Royalties
Other
Total own-source revenue
Total own-source income
Net cost of/(contribution by) services
2014-15
Estimated
actual
$'000
2015-16
Budget
137
SBS Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014-15
2015-16
Estimated
Budget
actual
2016-17
2017-18
2018-19
Forward
Forward
Forward
estimate
estimate
Estimate
$'000
$'000
$'000
$'000
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other investments
5,025
16,506
8,857
2,498
16,548
7,857
4,347
16,781
8,757
4,832
16,989
12,357
5,727
16,972
11,357
Total financial assets
30,388
26,903
29,885
34,178
34,056
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Inventories
Other non-financial assets
71,640
32,185
19,727
82,906
14,995
70,185
30,283
20,127
79,258
23,103
68,730
24,512
20,527
75,841
31,211
67,275
19,970
25,927
78,660
27,381
65,820
20,907
31,327
86,846
15,406
Total non-financial assets
221,453
222,956
220,821
219,213
220,306
Total assets
251,841
249,859
250,706
253,391
254,362
LIABILITIES
Payables
Suppliers
Other payables
21,664
8,115
22,305
4,515
21,667
4,965
23,173
4,965
22,970
4,965
Total payables
29,779
26,820
26,632
28,138
27,935
Interest bearing liabilities
Leases
394
224
44
-
-
Total interest bearing liabilities
394
224
44
-
-
Provisions
Employee provisions
Other provisions
21,646
1,165
22,346
1,213
23,046
1,263
23,746
1,284
24,446
1,284
Total provisions
22,811
23,559
24,309
25,030
25,730
Total liabilities
52,984
50,603
50,985
53,168
53,665
Net assets
198,857
199,256
199,721
200,223
200,697
EQUITY(a)
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
110,403
60,389
110,403
60,389
28,065
28,464
28,929
29,431
29,905
Total parent entity interest
198,857
199,256
199,721
200,223
200,697
Total Equity
198,857
199,256
199,721
200,223
200,697
110,403
60,389
Prepared on Australian Accounting Standards basis.
(a) ‘Equity’ is the residual interest in assets after deduction of liabilities.
138
110,403
60,389
110,403
60,389
SBS Budget Statements
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015-16)
Retained
earnings
$'000
Asset
revaluation
reserve
$'000
Opening balance as at 1 July 2015
Balance carried forward from
previous period
28,065
60,389
110,403
198,857
Adjusted opening balance
28,065
60,389
110,403
198,857
-
-
399
399
60,389
110,403
199,256
60,389
110,403
199,256
Comprehensive income
Surplus/(deficit) for the period
399
Total comprehensive income
399
Estimated closing balance as at
30 June 2016
28,464
Closing balance attributable
to the Australian Government
28,464
Prepared on Australian Accounting Standards basis.
139
Contributed
equity/
capital
$'000
Total
equity
$'000
SBS Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
285,937
283,270
273,040
271,209
274,088
107,074
3,700
11,000
87,107
3,428
10,500
91,750
3,428
10,500
105,102
3,428
10,500
100,337
3,428
10,500
Total cash received
407,711
384,305
378,718
390,239
388,353
Cash used
Employees
Suppliers
Borrowing costs
Other
126,370
262,180
193
2,770
125,621
253,156
18
-
122,604
248,024
6
-
124,298
251,681
1
-
125,266
247,798
-
Total cash used
391,513
378,795
370,634
375,980
373,064
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering
of services
Interest
Net GST received
2014-15
Estimated
actual
$'000
2015-16
Budget
Net cash from/(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Investments
16,198
5,510
8,084
14,259
15,289
198,000
160,000
160,300
159,400
150,000
Total cash received
198,000
160,000
160,300
159,400
150,000
Cash used
Purchase of property, plant
and equipment
Investments
11,061
190,000
8,867
159,000
5,155
161,200
10,130
163,000
15,394
149,000
Total cash used
201,061
167,867
166,355
173,130
164,394
(3,061)
(7,867)
(6,055)
(13,730)
(14,394)
Net cash from/(used by)
investing activities
140
SBS Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
FINANCING ACTIVITIES
Cash used
Repayments of borrowings
Other
20,000
160
170
180
44
-
Total cash used
20,160
170
180
44
-
(170)
(180)
(44)
-
(2,527)
1,849
485
895
5,025
2,498
4,347
4,832
2,498
4,347
4,832
5,727
Net cash from/(used by)
financing activities
(20,160)
Net increase/(decrease) in
cash held
(7,023)
Cash and cash equivalents at the
beginning of the reporting period
12,048
Cash and cash equivalents at the
end of the reporting period
5,025
Prepared on Australian Accounting Standards basis.
141
SBS Budget Statements
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
2,224
Funded internally from
departmental resources
8,837
8,867
5,155
10,130
15,394
TOTAL
11,061
8,867
5,155
10,130
15,394
RECONCILIATION OF CASH USED
TO ACQUIRE ASSETS TO
ASSET MOVEMENT TABLE
Total purchases
11,061
8,867
5,155
10,130
15,394
Total cash used to acquire assets
11,061
8,867
5,155
10,130
15,394
Prepared on Australian Accounting Standards basis.
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
142
SBS Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015-16)
As at 1 July 2015
Gross book value
Accumulated
depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new
or replacement assets
By purchase - appropriation
annual ordinary services
Land
$'000
Buildings
$'000
Other
property,
plant and
equipment
$'000
Computer
software
and
intangibles
$'000
Total
$'000
32,590
49,107
83,907
31,052
196,656
32,590
(10,057)
39,050
(51,722)
32,185
(11,325)
19,727
(73,104)
123,552
-
600
6,886
2,400
9,886
Total additions
Other movements
Depreciation/amortisation expense
-
600
6,886
2,400
9,886
-
(2,055)
(8,788)
(2,000)
(12,843)
Total other movements
As at 30 June 2016
Gross book value
Accumulated
depreciation/amortisation
and impairment
-
(2,055)
(8,788)
(2,000)
(12,843)
32,590
49,707
90,793
33,452
206,542
-
(12,112)
(60,510)
(13,325)
(85,947)
Closing net book balance
32,590
Prepared on Australian Accounting Standard
37,595
30,283
20,127
120,595
143
145