MONTREAL – Higher subscription revenues at Quebecor Media’s specialty TV channels combined with lower content costs for its over-the-air channels drove revenues in its broadcasting sector up 2.6%, or by $2.4 million, to $93.3 million in the first quarter ended March 31.
Subscription revenues at specialty TV channels Mystere, Argent, Prise 2, LCN, mentv and Mystery increased 2.2% or $1.6 million. There were also higher advertising revenues generated at TVA Network, Sun TV and the specialty TV channels along with an increase in revenues from commercial production.
Quebecor’s broadcasting segment recorded operating income of $2.7 million in the first quarter compared with an operating loss of $0.4 million the same quarter last year. Operating income from broadcasting operations increased by $2.5 million in the first quarter as a result of the impact of higher revenues at the specialty channels and lower content costs for the conventional channels.
Revenues at Quebecor Media, which includes its cableco Videotron and publishing wing, grew 8%, or by $55.9 million, to $754.6 million. Quebecor Media recorded a $41.2 million profit in the quarter, compared with a losss of $178.4 million in the same quarter of 2006.
The $219.6 million improvement was attributed to “the recognition of a $331.6 million unusual loss on debt refinancing in the first quarter of 2006.”
However, parent Quebecor Inc. reported 2007 first quarter revenues of $2.37 billion – essentially unchanged from the same period a year ago. Revenues at company’s printing division, Quebecor World, decreased 3.7%, or by $62.6 million.
“Quebecor’s first quarter 2007 revenues and operating income were relatively stable compared with the same quarter of 2006,” said Quebecor Inc. President and CEO Pierre Karl Peladeau. “Quebecor Media continued generating revenue growth and higher operating income, propelled by strong results at Videotron, which again increased its customer base for its digital cable television, Internet access and cable and wireless telephone services.”
