MONTREAL — Quebecor Media subsidiary TVA Group yesterday announced its financial results for the first quarter of 2022, which showed its operating revenues grew slightly to $144.5 million, representing a year-over-year increase of $3.7 million compared to the first quarter of 2021.
TVA Group reported an overall net loss of $13 million in Q1 2022, compared to a net loss of $4.5 million in the same quarter of the previous year.
The company’s consolidated negative adjusted EBITDA was $9.7 million for the three months ended March 31, 2022, which represents an unfavourable variance of almost $11.9 million from the $2.1 million in adjusted EBITDA it reported in Q1 2021.
TVA Group reported $15.5 million in negative adjusted EBITDA for its broadcasting segment in Q1 2022, an $11.9 million unfavourable variance compared to the previous year “mainly due to a decrease in profitability at TVA Network, which increased its investments in content, and to the decrease in Qolab’s adjusted EBITDA due to lower volume of activities,” explains a press release announcing TVA Group’s Q1 2022 financial results.
“The variances were partially offset by increased profitability at TVA Sports, which had to absorb significant content costs in the first quarter of 2021 as a result of the change in the broadcast schedule for the National Hocky League 2020-2021 season,” the release says.
TVA Group’s film production and audiovisual services segment, MELS, reported $3.8 million in adjusted EBITDA for Q1 2022, representing a $216,000 favourable variance “stemming primarily from an increase in profitability of soundstage, mobile and equipment rental services and virtual production services, whereas the segment’s other activities recorded decreased profitability,” the release explains.
TVA’s production and distribution segment achieved $1.6 million in adjusted EBITDA, a favourable variance of $1.3 million compared to Q1 2021, “generated primarily by Canadian and international distribution of films produced by Incendo,” the release says.
“First quarter results were largely affected by the reduced profitability of TVA Network due to a significant increase in our content investments,” said Pierre Karl Péladeau, acting president and CEO of TVA Group, in the release.
“With our variety shows and series, our strong prime time schedule allowed us to grow our market share by 0.7 points, as we broadcast four of the five most-watched shows in Quebec, including the new original series Le bonheur and the variety show Star Académie, which stood out with average audiences of more than 1.5 million viewers.
“It is becoming critical to invest more heavily in our programming to ensure that TVA Network maintains its leadership position amid the intensified competition and the increase in available content. On the strength of this strategy, despite a declining traditional advertising market compared with 2021, TVA Network grew its advertising revenues by 2.3% during the quarter, a level of growth fuelled by our digital platforms, particularly TVA+. Our specialty channels’ advertising revenues also increased 11.3%, mainly due to LCN, which has provided exceptional coverage of the current geopolitical situation, as well as TVA Sports. More than ever, content is the key to our strategies and our viewers and advertisers alike reap the benefits,” Péladeau said.
“In the Film Production & Audiovisual Services segment, our soundstage and equipment rental services reported increased activity. In addition to our desirability for various local productions, we continue to be a destination of choice for international players, including Disney, which rented part of our studios for the first quarter of the year. Our financial performance continues to be dependent on the presence of major productions in our facilities. Indeed, enhancement of our service offering through the addition of MELS 4 is designed to position us well in that regard. Our virtual production activities, which are up over the 2021 reference quarter, continue to stand out and attract growing numbers of producers with a superior business case,” he added.
“Our Production & Distribution segment, for its part, achieved solid performance for the first quarter of the year. Our increased distribution activities during the period enabled us to deliver over 20 films produced by Incendo in the past two years. To continue to develop this segment, we recently announced the establishment of a brand new distribution unit for Incendo and Quebecor Content, under the direction of Cynthia Kennedy. With over 25 years of experience in sales and management positions with international media companies, we are confident Ms. Kennedy has the expertise and leadership to accelerate our growth in this segment.”
For the full details of TVA Group’s Q1 2022 financial results, please click here.
