MONTREAL – TVA blamed its modest fourth quarter growth on the economy and the continuing sluggish advertising market.
“While we are posting positive results, the potential for future growth in advertising revenues, which still account for close to 75% of the Television sector’s revenues, is severely limited in view of the economic environment and current market trends”, said president and CEO Pierre Dion, in the statement announcing the company’s financial results.
TVA reported that its consolidated operating income increased by 43.8% to $32.2 million, compared with $22.4 million in the same quarter of 2008. For the fiscal year ended December 31, 2009, consolidated operating income was $80.0 million, compared with $66.0 million for the previous fiscal year, a 21.3% increase. However, the company admitted that adjustments made over the past two years in connection with disputed regulatory fees accounted for a large portion of this increase. For the same period, the company generated net income of $49.1 million, compared with $44.9 million in 2008.
The Quebecor Media subsidiary recorded net income of $21.1 million for the last quarter of 2009, compared with $14.5 million in the corresponding quarter of 2008. But when adjustments related to CRTC Part II licence fees were excluded, operating income was $23.2 million in the fourth quarter, up marginally when compared with $22.4 million in the same quarter of 2008.
Operating income in its publishing sector dropped by 6.1% from $1.9 million in the fourth quarter of 2008 to $1.8 million in the same quarter of 2009. TVA also recorded an operating loss of $2.8 million in its distribution sector, compared with an operating income of $1.1 million in the fourth quarter of 2008.
