TVA Group posted a 3.7% increase in revenues in the second quarter, breaking a five-quarter streak of year-over-year declines in revenues, but still suffered a net loss of $2.9 million.
In a press release published Thursday evening, the Quebec media giant indicated that its revenues increased from $138.8 million in the second quarter of 2023 to $144.0 million for the same period a year later. This represents an increase of $5.19 million from one year to the next.
The company had not reported a year-over-year increase in revenue since the fourth quarter of fiscal 2022, when it posted a modest $23,000 increase in revenue year over year.
According to the interim president and CEO of TVA Group, Pierre Karl Péladeau, the increase in revenues during the 12-week period ending June 30 is mainly attributable to the retroactive adjustment of the LCN channel’s royalty rates, as well as the return of foreign producers to MELS.
In particular, the TVA Group received a retroactive adjustment of $10.2 million in connection with LCN royalty rates for the period from September 1, 2017 to December 31, 2023, which explains part of the increase in its revenues in the second quarter.
Despite everything, Mr. Péladeau acknowledged that the television broadcasting sector continues to suffer the repercussions of the decline in advertising revenues and the “many challenges facing the industry.” Advertising revenues for the entire TVA Group continued to decline, going from $67.0 million in the second quarter of 2023 to $60.8 million a year later.
“This is why we are continuing our sustained efforts to receive fair market value for all of our specialty channels, and we are also counting on the upcoming arbitration decision of the (Canadian Radio-television and Telecommunications Commission) regarding TVA Sports royalties in order to receive from Bell TV this fair value that it has been demanding for years,” stressed Mr. Péladeau.
The net loss of $2.9 million, or seven cents per share, reported by the TVA Group in the second quarter still represents an improvement compared to that of $7.8 million, or 18 cents per share, reported for the same period a year ago.
While the decline in advertising revenues weighed on the results of the television and magazine sectors, the film and audiovisual services sector saw its revenues increase significantly from one year to the next, going from $12.2 million to $20.0 million.
According to Mr. Péladeau, “MELS is in a favourable position to attract even more productions following the increase in the tax credit for film production services, which went from 20% to 25%.”
Furthermore, Mr. Péladeau recalled that the year 2024 is a “transition year” for the TVA Group, as the company continues to implement its reorganization plan announced in November 2023, which included the elimination of 547 jobs.