Broadcast revenue grows for TVA

However, magazines continue to trend down for the Montreal media giant.
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Acquisitions, as well as budget cuts, led to a quarter of growth for Montreal-based media giant TVA Group.

TVA’s operating revenues came to $164.2 million in Q4, an increase of $13.7 million.

In terms of segments, broadcast brought in the most, shooting up by 8.3% for a total revenue of $122.6 million. TVA attributed that increase partly due to the addition of Evasion and Zeste and higher subscription revenues. However, revenue from magazines decreased, bringing in just under $15.9 million, down from $20.9 million.

France Lauzière, president and CEO of TVA Group, said in a statement that despite the decrease in magazine revenue, various rationalization plans have resulted in positive adjusted EBITDA and a 12.5% profit margin. Last year, TVA confirmed a number of layoffs across several of its English-language publications and stated that it was reconfiguring its internal structure, as well as moving some operations to Montreal. The group also shed 68 jobs across multiple sectors in June.

Film production and audiovisual services grew by nearly 24% to $23.6 million, while the new production and distribution segment (formed with the Group’s acquisition of the Incendo Group of Companies) brought in $6.8 million.

In the company’s Q4 release it also made mention of its past disputes with carrier Bell over royalties paid to specialty channel providers. Last year, the conflict resulted in parent company Quebecor briefly cutting the signal from TVA Sports to Bell customers, which the CRTC ordered a restore shortly thereafter. “Bell must recognize the fair market value of TVA Sports and all the specialty services about which we are currently negotiating,” the report stated.