TORONTO – While revenues shot up 8%, the return of the National Hockey League and the telecast production costs from TSN meant operating income at Bell Globemedia in the second quarter of this year suffered in comparison to the NHL-free 2005.
Bell Globemedia (owners of TSN, CTV, Animal Planet, Discovery, The Globe and Mail and other assets) revenues for the quarter, ended June 30th were $431 million. Operating income decreased by 17.9% to $78 million, however. For the full six months, Bell Globemedia’s revenues grew 9.3% to $825 million.
BGM’s revenue growth reflected higher television and print advertising sales and
higher subscription revenues from its specialty services, said the company’s press release today.
Total advertising revenues grew 6% this quarter and 7.5% on a year-to-date basis, thanks to hockey’s return, "which drove advertising revenues at Bell Globemedia’s sports specialty channels TSN and RDS, as well as to higher advertising revenues at The Globe and Mail," says the company. "In addition, CTV Television continued its ratings leadership with 9 of the top 10 and 17 of the top 20 regularly scheduled programs among all viewers for the period September 2005 to July 2006.
Subscriber revenues grew 11.5% and 11.6% in Q2 and year-to-date 2006, respectively, reflecting specialty channel subscription growth, as well as higher online subscriptions and an increase in circulation at The Globe and Mail. Online subscriptions have increased by over 36% in the past twelve months, while circulation has grown almost 5% over the same period.
BGM also took a $7 million write-down on underperforming Quebec TV station TQS in the quarter, of which it is a 40% owner with Cogeco Inc.
