The demise of terrestrial radio has been greatly exaggerated, at least in Canada, according to new data released by the Canadian Radio-television and Telecommunications Commission.

The federal regulator said Wednesday that AM and FM stations saw profits rise 5.5 per cent to $300.2 million last year.

That's because advertisers are paying more money, in spite of the growing popularity of the iPod and satellite radio services.

Last year, commercial private radio station revenues increased 6.2 per cent to $1.5 billion from $1.4 billion in 2006.

Local advertising revenues grew by 4.8 per cent to $1.1 billion, while national sales were up 8.3 per cent to $380.6 million.

The totals were derived from financial statements provided by the radio stations, the regulator said.

The CRTC also noted that 23 new radio stations opened in 2007, bringing the national total to 619.