Telefilm Canada's annual report contained a good news-bad news scenario, with Canadian films increasing their take at the box office but at the same time, experiencing less of a share of the total market.

The government-funded agency, which develops and promotes Canadian film and online projects, released its 2008/2009 report on Friday.First World War epic Passchendaele, starring Paul Gross, was Telefim's highest-earning movie at $4.4 million. (Chris Large/Alliance Films)

It revealed that Canadian movies raked in a total of $919.6 million at the box office compared to $857.4 million from the previous fiscal year. However, their share of the market dropped from 3.3 per cent to 2.9 per cent.

The report said the agency sought more collaborations overseas, resulting in bigger sales.

"We are placing a great deal of importance on forging alliances with foreign partners and promoting co-production activities which help to build industry capacity and ensure its long-term viability," stated Michel Roy, chair of Telefilm's board of directors.

"In terms of results for our international activities, it's worth noting that in 2008, each dollar Telefilm invested in markets generated close to $12 worth of foreign sales."

In total, the organization produced 21 films in French and 20 films in English.

Its top three earners were:

• Passchendaele ($4.4 million).
• Cruising Bar 2 ($3.5 million).
• Babine ($2.2 million).

Over in the interactive section, the news wasn't good. The report says page views slid from 5.5 million in 2007 to 4.4 million in 2008. The agency said the slide was a consequence of fewer online projects being supported this time around through its Canada New Media Fund.

Wayne Clarkson, Telefilm's executive director, pointed out that "Telefilm-supported productions received a total of 119 awards while a number of films achieved impressive commercial success."