MONTREAL – The costs of launching of three new specialty channels pulled down 2011 profits at Quebecor’s TVA Group.
The Montreal-based television and magazine company reported net income for the fourth quarter ended December 31, 2011 of $11.5 million, down from $19.3 million in the same quarter of 2010.
Its television sector's operating income dropped 32.5% to $18 million which the company attributed to losses at its TVA Sports and Sun News services, plus a drop in operating and advertising revenues at TVA Network.
"The Television sector's financial results for the fourth quarter of 2011 were again affected by the operating losses of the three specialty channels launched in 2011: TVA Sports, SUN News and, to a lesser extent, Mlle", said president and CEO Pierre Dion, in a statement.
The company’s publishing sector, however, saw an 11.1% increase in operating income to $2.56 million over the fourth quarter of 2010.
For the fiscal year, net income was $25.6 million, down from $37.3 million in 2010. Consolidated operating income fell 32.5% to $50.5 million from $74.9 million, and consolidated operating revenues totalled $445.5 million, a slight decrease from $448.2 million in the previous year.
