MONTREAL – Quebec government fees were to blame for a quarterly net loss of $39.3 million, TVA Group said Tuesday in its financial results for the period ended March 31, 2012. Net income attributable to shareholders in the same quarter last year was $300,000.
The Quebecor-owned television and magazine company recorded a $32.2 million impairment charge this quarter related to increased fees for waste recovery services provided by Quebec municipalities for 2010, 2011 and 2012. President and CEO Pierre Dion hinted that the company may dispute the charges.
“In our view, the costs put forward, how they are allocated and the new fees for magazines are based notably on an incomplete process and on unreasonable, arbitrary and false premises and conclusions, which makes them legally invalid”, Dion said in a statement. “Further, they seriously compromise the financial viability and stability of an industry that makes a positive contribution to the cultural sector of our society. We are currently examining the legal remedies available to ensure that our rights are respected.”
The Montreal-based television and magazine company also reported an operating loss in its television segment of $3.73 million which it attributed to losses at its TVA Sports service and Sun News, as well as higher operating expenses at TVA Network.
The publishing segment recorded a $2.03 million loss which the company said was primarily due to the impact of the new government fees.
