For the three-month period ended march 31, TVA Group has posted a net loss of 723 000 $, or two cents per share, after losing $ 6.7 million in the same period last year.
May 12, 2020 16h19
Updated at 23h11
Schedule and finance: the COVID-19 to reflect in Group VAT
The canadian Press
As is the case for many companies, the COVID-19 risk of, negatively affect the financial results of the TVA Group, which also assesses the impact, in the longer term, the pandemic on the content of its programming to the small screen.
Its president and chief executive officer, France Lauzière, said on Tuesday that the level of original content should be “interesting enough”, even if it is difficult at this time to move forward on this, which will be presented in the fall.
“The information, it is in continuity, she explained during a telephone conference on the sidelines of the annual meeting. It is probably in the form [variety shows] that there will be a recovery. The forms of tea and of series [television] will probably be this which are the most complex. This is not impossible, but for the moment, there is a lot of reflection.”
Ms. Lauzière explained that TVA had quickly been able to adapt despite the many restrictions aimed at limiting the spread of the new coronavirus.
If the company has declared a break for shows like The Voice and productions such as the Gala Artis, she has been able to provide programming as It will go and A chance that it was — an event aimed at paying tribute to all those who are trying to come to the end of the COVID-19.
Within the subsidiary of Quebecor Media, the pandemic has had an impact on the advertising revenues, which has deprived its sports channel, TVA Sports, sports events, has resulted in a reduction of the marketing of some publications, and has stopped most of the activities of content production at MELS. In addition, at the end of march, approximately 480 people had been laid off temporarily with TVA Group, in the context of a reduction of workforce was made among Quebecor.
“The first quarter results have been positive and the impact of the crisis was felt in the second quarter, said Ms. Lauzière. We expect impacts delivered over the course of the next few months.”
For the three-month period ended march 31, TVA Group has posted a net loss of 723 000 $, or two cents per share, after losing $ 6.7 million in the same period last year. Its revenue rose 2.2% to 137.1 million $, despite declines of 6% and 10 % recorded by the TVA network and TVA Sports.
Its adjusted operating earnings, however, has more than doubled, to $ 8.5 million, essentially thanks to the contribution of some specialty channels.
Nothing has been cancelled at MELS on the production side, explained Ms. Lauzière, believing that there was a “definite desire” to re-launch production as the new version of the film Mom, I missed the plane , as well as the feature film Moonfall, from director Roland Emmerich.
“The forms of tea and of series [television] will probably be this which are the most complex. This is not impossible, but for the moment, there is a lot of reflection ”
France Lauzière, president and chief executive officer
During the annual meeting, which was taking place in a virtual way, a shareholder has asked the management of TVA Group that it intended to put before to “reduce” or “eliminate” the deficits of its sports channel.
For business, it is essentially the royalties from showing the “fair market value” of TVA Sports. Negotiations are still ongoing with the ECB in this folder. In January, Bell has also appealed the decision of the Council of broadcasting and telecommunications commission (CRTC) ordering him to book on TVA Sports a fair treatment compared to that of its own sports channel, RDS, offering in its package of “Good.”
“The profitability of TVA Sports or improvement [of finance] is going to go through its subscription revenues,” said the chief financial officer of TVA Group, Anick Dubois, in answer to the question of the shareholder.
According to the most recent CRTC data, TVA Sports has posted a pre-tax loss of $ 22 million in 2018. Since 2014, the cumulative deficits total more than $134 million.