MONTREAL – Despite an uptick in revenues, TVA Group kicked off 2014 in the red due in part to losses at TVA Sports and its new Film Production and Audiovisual Services segment.
The Quebecor Media subsidiary posted a net loss attributable to shareholders of $14.7 million in the first quarter ended March 31, 2015, well below its $10.2 million net loss in the same quarter of 2014. Revenues increased to $126.5 million from $105.3 million year-over-year.
The consolidated adjusted operating loss of $7.7 million was attributed to:
– a $8.5 million adjusted operating loss in the Broadcasting & Production segment, a $272,000 (-3.3%) unfavourable variance caused mainly by an increase in the TVA Sports channel's adjusted operating loss, partially offset by the TVA Network, which recorded adjusted operating income for the quarter, compared with an adjusted operating loss in the same period of 2014;
– a $938,000 adjusted operating income in the Magazines segment, a $1.25 million (-57.1%) decrease due primarily to a 11.1% decrease in operating revenues, partially offset by a 3.4% decrease in operating expenses, mainly editorial costs; and
– a $146,000 adjusted operating loss in the company’s new Film Production and Audiovisual Services segment, which includes the operations of the properties acquired from Vision Globale on December 30, 2014.
Cash flows provided by operating activities totalled $25.1 million for the quarter, compared with $4.9 million in the same quarter of 2014. The $20.2 million increase was essentially due to a favourable variance in non-cash items, particularly accounts payable, rights and accrued liabilities, which was partially offset by the increase in programs, broadcast and distribution rights and inventories.
“The Broadcasting & Production segment's results for the first quarter of 2015 reflect the fact that TVA Sports had to absorb the full cost of its new programming while the growth in the subscriber base has not yet reached its full potential," said president and CEO Julie Tremblay, in a statement. "However, the subscription revenues of TVA Sports have more than quadrupled compared with the same quarter of 2014 and our advertising revenues continued to grow, increasing by millions of dollars. The channel is setting new ratings records, attracting more than 2 million viewers for Stanley Cup playoff games.
“On its part, the TVA Network is improving its financial performance compared with the same quarter of 2014, despite a 4.0% decline in advertising revenues. The TVA Network maintained its 24.2% market share, while its two main rivals lost market share.”
