MONTREAL – A tough conventional TV market meant that Quebecor’s TVA Group reported a net loss of $800,000 for the third quarter of 2006, compared with a net income of $2.7 million for the corresponding quarter of 2005.
"The decline in net income and in income per diluted share from the same period a year earlier is mainly due to the net impact of rationalization expenses and to the share in the depreciation of an intangible asset in the publishing business. TVA maintained its operating income at $4.8 million for the third quarter, the same amount as for the corresponding period of 2005," said the press release.
The company’s net income since the start of the year totalled $9.9 million, well off the $19.7 million posted over the first three quarters of 2005.
"Conventional television continues to feel pressure from the market," said Pierre Dion, president and CEO, in a release. "TVA Network saw its profit decline significantly during the quarter compared to the same quarter a year earlier, even though it continues to post excellent audience ratings, with the BBM numbers showing that it posted a 27.8% market share and broadcast 23 of the 30 most-watched shows during this period."
All of its specialty channels improved their operating income over the same period of last year. "We are very happy with the results of our new Prise 2 channel, which was launched in the first quarter of this year. The growth of subscription revenues for these specialty channels is the main reason for this better profitability," says the release.
Sun TV reduced its operating loss by more than 27% from the third quarter of 2005 and the publishing business had a good quarter, posting considerably higher operating income than for the corresponding period a year earlier, "illustrating a clear improvement in our margins," says Dion.
Cash flows from operating activities were $5.3 million for the third quarter, against $13.2 million for the corresponding year-ago period. This decrease is mainly the result of the lower income and the net change in non-cash working capital items.
