MONTREAL – Startup costs associated with the Sun News Network ate into net income attributable to shareholders in the first quarter of 2011, cutting earnings to $300,000 from $700,000 a year earlier.
Quebecor Media-owned TVA Group reported Tuesday that total revenues for the period ended March 31, 2011 dropped 2.3% to $107.1 million from $109.6 million in the same period in 2010. The company also lost $844,000 during the quarter compared to a $741,000 profit last year.
"The lower numbers for TVA Group reflect our strategy of investing in content and the launch of new specialty services to take advantage of opportunities in the fast-changing industry environment," said president and CEO Pierre Dion, in a statement.
In its television division, operating profit decreased by 16.8% (or $578,000) year-over-year because of pre-operating expenses of the new Sun News specialty service which launched on April 18. That was partially offset by an 82.2% decrease in the TVA Films division’s operating loss and a 46.5% drop in Sun TV station’s operating loss due to the launch of the new TV service and “substantially reduced activity”.
Dion said that the company’s specialty services grew advertising revenues by 15.3%, and subscription revenues increased by 9.2% compared with the same quarter of 2010.
TVA Group’s publishing sector’s operating income dropped 26.4% this quarter to $1.7 million, down from $2.3 million in the first quarter of 2010.
