MONTREAL — Quebecor’s TVA Group media division reported Thursday its consolidated operating revenues in the fourth quarter of 2019 totalled $164.2 million, a year-over-year increase of 9.1% compared to Q4 2018.
Net income attributable to shareholders was $16 million, compared with net income attributable to shareholders of $9.5 million in the same quarter of 2018. TVA Group’s consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totalled $33.6 million in Q4 2019, representing a 29.6% increase from the same quarter of last year.
The company’s broadcasting segment, which includes its TVA Network and specialty channels, reported adjusted EBITDA of $21.3 million in the fourth quarter of 2019, a 28% increase over the same quarter of 2018, attributable mainly to three things: the acquisition of the Évasion and Zeste specialty channels (finalized in the first quarter of 2019); a 24.6% increase in the adjusted EBITDA of the other specialty channels, which benefited from a favourable retroactive adjustment in subscription revenues; and a 13.5% increase in the adjusted EBITDA of the TVA Network, the company said in its news release.
TVA Group’s Film Production and Audiovisual Services (Mels Studios and Postproduction) segment reported $7.83 million in adjusted EBITDA in Q4 2019, a 31% increase over Q4 2018, due to the improved profitability of all of the segment’s operations.
The new production and distribution segment, which since April 1, 2019 includes the businesses TVA Group gained through the acquisition of the Incendo group of companies, recorded adjusted EBITDA of $2.2 million in the fourth quarter of 2019.
Finally, TVA Group’s Magazines segment reported adjusted EBITDA of $1.98 million in Q4 2019, a $1.26 million (38.9%) decrease compared to the fourth quarter of 2018.
“We are very satisfied with our results for the last quarter of our financial year. Despite the many challenges we faced, TVA Group grew its adjusted EBITDA thanks to the various acquisitions made in recent months, the savings yielded by the budget cuts announced in the second quarter, and gains on the subscription fees for our specialty services,” said France Lauzière, president and CEO of TVA Group, in the news release.
“In the Broadcasting segment, adjusted EBITDA increased because of, among other things, the addition of the Évasion and Zeste channels as well as increased subscription revenues at all the other specialty services. In this regard, we are pleased to report that we have renewed most of our distribution agreements and those cable operators have recognized the fair market value of our channels,” Lauzière continued.
Of course, the company release also took a swipe at Bell.
“Now Bell must recognize the fair market value of TVA Sports and all the specialty services about which we are currently negotiating. We will continue making representations on this issue to regulatory and government authorities. We welcome the Canadian Radio-television and Telecommunications Commission decision in favour of TVA Group, which found that Bell had given undue preference to its sports channel. TVA Sports and RDS are two comparable services and must be treated equitably by Bell in its most popular package,” Lauzière added.
(Bell has since asked for leave to appeal the CRTC’s December 2019 decision.)
