MONTREAL – Quebecor Media’s TVA Group today reported net income of $5.3 million in the third quarter of 2007, much improved over Q3 2006 when it recorded a net loss of $800,000.
The division’s primary asset, broadcast television network TVA saw growth in operating income of $3.9 million or 103.8% in the quarter ended September 30, 2007, compared with the corresponding quarter of 2006, mainly due to the reversal of the Part II licence fees normally payable to the CRTC for the period from September 1, 2006 to September 30, 2007.
The Federal Court of Canada ruled the fees an illegal tax late last year but stopped short of calling for the government to refund some $700 million to broadcasters. The broadcasters have appealed that part of the decision while the government has appealed the decision as a whole. That hearing will take place December 4th.
TVA Group also saw growth of 32.1% in the operating income for specialty channels and a decrease of 13.8% in the operating loss of SUN TV.
The division also publishes magazines and distributes films in Quebec.
The company’s consolidated operating income was $11.8 million, against operating income of $4.8 million for the same quarter of 2006, representing growth of 148.1%. For the first nine months of fiscal 2007, TVA’s consolidated operating income was $36.6 million, against $23.2 million for the same period of 2006, for a growth of 57.7%.
Since the beginning of the fiscal year, the company has generated net income of $22.8 million, or $0.84 per share, compared with $9.9 million, or $0.36 per share, for the corresponding period of 2006, reflecting an improvement of 131.2%.
"We are satisfied with the financial results achieved by our three business segments for the last quarter. In the television sector, improved profitability comes largely from our specialty channels. On a comparative basis, TVA Network’s results remained stable, a direct consequence of our investments in content, advertising and promotion costs for the start of the fall 2007 season. TVA Network will continue to dominate the French-language market share in Quebec by being the leader, seven days a week", said Pierre Dion, president and CEO.
