MONTREAL – Despite an increase in revenues, TVA Group kicked off 2016 in the red and shuttered its Argent business channel after 11 years of operations.
President and CEO Julie Tremblay said Tuesday that the company will continue operating the Argent brand through the company’s TVA Nouvelles newscasts, LCN news and public affairs channel, and digital platforms, but said “turmoil in the media industry is forcing us to constantly question our products and brands with a view to maintaining their profitability”. The French-language business channel ceased operations on April 30.
The Quebecor Media subsidiary posted a net loss attributable to shareholders of $7.4 million in the first quarter ended March 31, 2016, compared with a net loss attributable to shareholders of $14.7 million in the same quarter last year. Revenues increased to $145.5 million from $126.5 million year-over-year.
After making changes to the company’s management structure earlier this year, operations now consist of the following segments:
– The Broadcasting & Production segment, which includes the operations of TVA Network (including the subsidiary and divisions TVA Productions Inc., TVA Nouvelles and TVA Interactif), specialty services, the marketing of digital products associated with the various televisual brands, the commercial production and distribution of audiovisual products by the TVA Films division;
– The Magazines segment, which through its subsidiaries, notably TVA Publications Inc. and Les Publications Charron & Cie Inc., publishes French- and English-language magazines in various fields such as the arts, entertainment, television, fashion, sports and decoration, and markets digital products associated with the various magazine brands, and provides custom publishing, commercial print production and pre-media services; and
– The Film Production & Audiovisual Services segment, which through its subsidiaries Mels Studios and Postproduction G.P. and Mels Dubbing Inc. provides soundstage and equipment leasing, dubbing and postproduction and visual effects services.
TVA Group reported an adjusted operating loss in its Broadcasting & Production segment of $3.89 million due mainly to the following factors:
- 21% decrease in the adjusted operating loss of TVA Sports;
- Increase in adjusted operating income at the specialty services other than TVA Sports; and
- Increase in the adjusted operating income at TVA Network, mainly due to lower operating expenses, other than the expenses generated by increased commercial production volume of activity.
Adjusted operating income in the Film Production & Audiovisual Services segment ("MELS") of $2.12 million due to increased volume of activity in soundstage and production equipment leasing compared with the same quarter of 2015.
Adjusted operating income in the Magazines segment of $2.06 million mainly because of the addition of the adjusted operating results of the magazines acquired from Transcontinental and a decrease in the magazines' expenses due to a decline in the volume of activity for comparable magazines.
"We are very satisfied that we have increased our adjusted operating income for the third consecutive quarter”, added Tremblay. "The improvement was driven by the addition of the magazines we acquired in the second quarter of 2015 combined with significant volume of activity growth at MELS and stringent control of operating expenses."
