MONTREAL – Quebecor Media’s broadcaster and publisher TVA Group reported net income of $5.7 million for the first quarter of 2008, ended March 31, 2008, compared with net income of $900,000 in the same quarter of 2007.
The company says its significant improvement came from growth of 52% in operating income for specialty channels including operating costs related to the launch of the new channel, Les idees de ma maison, in mid-February; and growth of over 11% in TVA Network’s operating revenues, while for the same quarter of 2007, there was a drop of 2.3% against the same quarter of 2006.
The company also showed growth of more than 50% in the publishing sector’s operating income, compared with the corresponding quarter last year, increasing from $1.1 million in 2007 to $1.7 million in 2008, says the company’s release.
Its movie distribution unit also improved profitability.
As a result, the company’s consolidated operating income was $11.4 million, against operating income of $2.7 million for the same quarter of 2007.
"We are satisfied with the contribution our three business segments have made to the Company’s consolidated financial results for the first quarter of fiscal 2008. In the short term, our advertising revenues from the Television sector are excellent because TVA Network has benefited from, among other things, an unusual economic environment in Quebec’s French-language television market while optimizing its customer offering for advertisers, maintaining a market share of 27 and broadcasting 23 of the market’s 30 best-watched programs. The growth of our operating income from specialty channels also results from the growth of their advertising revenues by more than 32% over the corresponding quarter of 2007. We are also pleased with the success that our new specialty channel, Les idees de ma maison, has achieved among advertisers and viewers alike since its launch on February 19, 2008," said Pierre Dion, president and CEO of TVA Group, in the release.
Cash flows from operating activities used during the quarter were $2.8 million, against $13.8 million in cash flows generated for the corresponding year-ago period. This reduction is the result of major disbursements since December 31, 2007, mainly for income tax and to accounts payable and accrued liabilities with regard to rights and fixed assets.
TVA Group is one of the largest private sector producers and the largest private sector broadcaster of French-language entertainment, information and public affairs programming, and magazine publishing in North America. TVA also operates SUN TV, a conventional station in Toronto.
