Quebecor announced Thursday a drop in revenue of 12.0 million for Groupe TVA in the second quarter, compared to the second quarter of 2021. This translates into a net loss attributable to shareholders of 3.2 million, or $0.07 per share. .
Posted yesterday at 8:26 p.m.
The communications company recorded revenues of 147.5 million for this quarter.
Earnings before interest, taxes and amortization (EBITDA) experienced an unfavorable variation in the various sectors of TVA Group: 6.43 million in television broadcasting; 2.17 million in film and audiovisual services (“MELS”); $112,000 in magazines; 2.50 million in production and distribution.
“The results of the second quarter were significantly affected by a decline in profitability in the television broadcasting sector, more specifically in the TVA Network, a situation resulting from the continuation of our strategy aimed at improving our investments in content”, indicates the President and Acting CEO of Groupe TVA, Pierre Karl Péladeau, in a press release.
The decrease in profitability of the TVA Network is nevertheless partially offset by the improvement in that of TVA Sports, he specifies. The chain had to absorb significant costs in the second quarter of 2021 after the modification of the schedule of the National Hockey League.
“The TVA Network gained 0.7 market share during this period, in addition to broadcasting Star Academy which stood out with an average audience of more than 1.5 million viewers,” adds Mr. Péladeau.
He anticipates “that the unfavorable trend in advertising revenues will continue over the next few quarters, as several foreign subscription video-on-demand companies have announced that they will also offer their distribution platform to advertisers”.
He also blames competition from the public broadcaster, the Société Radio-Canada, whose growth on the web makes it possible to capture more advertising revenue.
As for MELS, if post-production services have seen an increase in their profitability, this is not the case for visual effects services as well as studio, mobile and equipment rental activities.
“Our studio and equipment rental services experienced a drop in their volume of activity compared to the comparable period during which we had been able to benefit from the presence of megaproductions transformers within our facilities,” notes Mr. Péladeau.
Losses in the magazine sector were attributable to less government assistance and an 11.1% decline in newsstand revenue, according to the statement.
Production and distribution were impacted by the COVID-19 pandemic.
“Our teams are currently finishing the production of four new films, the deliveries of which are scheduled for the fall, in addition to starting the production of a series which will be produced through a co-production with Ireland”, specifies Mr. Péladeau. .
The pandemic also makes it impossible to determine with certainty all the future impacts resulting from the health crisis on TVA Group’s operating results.