MONTREAL — Despite improved revenues in its broadcasting and film production segments, Québecor Media’s TVA Group subsidiary reported a net loss attributable to shareholders of $1.9 million or $0.04 per share in the second quarter of 2017, which is actually an improvement over its net loss attributable to shareholders of $5.7 million or $0.13 per share in the same quarter of 2016.
TVA Group reported its consolidated adjusted operating income as $11.07 million in the second quarter, which is a favourable variance of almost $8.65 million from Q2 2016. The company’s broadcasting and production segment posted an adjusted operating income of $5.08 million, an increase of almost $7.51 million from Q2 2016, caused mainly by a 30.2% decrease in the adjusted operating loss of TVA Sports due to increased advertising and subscription revenues, the company said in a press release.
The company’s film production and audiovisual services segment reported a $2.03 million adjusted operating income in Q2 2017, a favourable variance of $1.09 million from the same quarter last year, essentially because of increased adjusted operating income from soundstage and equipment rental due to higher volume of activities, TVA Group said.
TVA Group’s magazines segment posted a slight increase in its adjusted operating income, which grew to $3.97 million in the second quarter of 2017, up $45,000 from Q2 2016, due primarily to savings generated by rationalization plans implemented in recent quarters, the company said.
“We are satisfied with our second quarter of 2017 results, particularly in the Broadcasting & Production segment, which grew its advertising revenues for the third consecutive quarter, with year-over-year increases of 77.6% at TVA Sports, 4.2% at the other specialty services, and 6.7% at TVA Network,” said Julie Tremblay, president and CEO of Québecor Media Group, in the press release.
TVA Group’s total market share increased by 3.5 points to 39.8% in the second quarter of 2017, compared with 36.3% in the same period of 2016, Tremblay said. TVA Sports increased its market share by 1.8 points to 5.4% as a result of large audiences for the Stanley Cup playoffs, with the channel setting a new record by registering the best ratings for the Stanley Cup finals since 2008, she said. In addition, the news and public affairs channel LCN grew its market share by 0.8 points to 4.5% and TVA Network grew by 0.5 points to 23.9% market share, Tremblay said.
“The arrival of major new productions, including the Hollywood movie X-Men and the television series The Bold Type, in the second quarter, helped boost the Film Production & Audiovisual Services segment’s adjusted operating income, which more than doubled compared with the same quarter of 2016. The growing demand for film and TV series production services, combined with the drawing power of Canada and of Montreal in particular and the reputation of our facilities and services in this field, have led us to submit to the Corporation’s Board of Directors a project to expand our existing complex,” Tremblay concluded.
On Friday, August 4, the company’s board of directors approved the plan to expand TVA Group’s MELS production complex in the Technoparc, near the Bonaventure Autoroute in Montreal. The project involves construction of a 160,000-square-foot building that will include a 60,000-square-foot soundstage with 50-foot vertical clearance and adjacent multi-use spaces. After it obtains the required permits, the company said it hopes to break ground in the fall and have the facility ready to welcome its first productions in the summer of 2018.
All told, TVA Group reported consolidated revenues of $152.5 million in the second quarter of 2017, compared to $144.2 million in Q2 2016. Breaking these figures down, the company’s broadcasting and production segment reported almost $117.3 million in revenues in Q2 2017, up from $105.1 million in Q2 2016, while the film production and audiovisual services segment posted $14.2 million in revenues in Q2 2017, compared to $12.7 million in Q2 2016. The magazines segment’s revenues dropped to $23.7 million in the second quarter of 2017, down from $29.2 million in the same quarter last year, while intersegment business suffered a revenue shortfall of $2.6 million, comparable to a revenue loss in Q2 2016.
Breaking down TVA Group’s revenues even further, of its total $152.5 million in revenues, advertising services accounted for nearly $81.4 million in revenues in Q2 2017, while rental and postproduction services generated $13.7 million in revenues in the second quarter. In terms of other Q2 2017 revenues, royalties and product sales accounted for $32.2 million and $25.3 million, respectively. With the exception of product sales, revenues increased across the board when compared to the second quarter of 2016.
To access the full details of TVA Group’s Q2 2017 financial results, in English and French, click here.
