TVA Group posts reduced Q4 earnings on Sun News launch costs
The Quebec broadcaster, a division of Quebecor Media, absorbed losses after starting up TVA Sports and Mlle last year.
Start-up losses from its TVA Sports and Sun News network channels led Quebec broadcaster TVA Group on Tuesday to post reduced fourth quarter earnings.
Montreal-based TVA saw its profit line for the three months to Dec. 31, 2011 stand at $9.1 million, compared to Q4 earnings of $18.8 million in the same period of 2010.
TVA’s fourth quarter revenue was $131.6 million, just shy of $133.4 million in 2010.
Most of that revenue line came from TV, at $114.4 million in revenue during the latest quarter, against a year-earlier $115.5 million.
The TV sector’s operating income fell 32.5% to $18 million after costs absorbed to launch three specialty channels last year.
“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,” CEO Pierre Dion said in a statement that accompanied the latest financial results.
TVA Group is a division of Quebecor Media, which also reported on Tuesday that its Videotron cable business posted fourth quarter earnings up 68% to $161.9 million, on overall revenue up 7.4% to $634.8 million.
From Playback Daily