TVA Q1 results in magazine division are positive as result of cost-cutting

Though there was a decline in operating revenues in the magazine division of TVA Group Inc. it has been able to have good, though modest,adjusted operating income of $875,000 , a variance of $491,000 primarily as a result of savings in staff and expense lines implemented in 2017 and the first quarter of 2018.

France Lauzière, President and CEO of TVA Group said

"Although the decline in our Magazines segment's operating revenues continued in the first quarter of 2018, we were able to improve the segment's financial results by continuing our efforts to cut operating expenses and focusing on our strongest brands. According to the latest Vividata survey, we are reaching 9.1 million readers in Canada across all platforms. Our English‑language titles have 6.7 million readers and our French‑language titles 2.9 million".

Over all, TVA Group Inc. recorded a net loss of $5 million or $0.12 a share in the first quarter, compared to a lost of $8 million or $0.19 a share in the comparable period in 2017. TVA Group Inc., a subsidiary of Quebecor Media Inc., is a communications company engaged in the broadcasting, film and audiovisual production, and magazine publishing industries. TVA Group Inc. is North America's largest broadcaster of French‑language entertainment, information and public affairs programming and one of the largest private‑sector producers of French‑language content. It is also the largest publisher of French‑language magazines and publishes some of the most popular English‑language titles in Canada. The Corporation's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B. 

TVA Group to close two titles as part of Quebecor Media's 220 job cuts

The Quebecor Media Group has announced that it will be cutting 220 jobs, or nearly 8 per cent of its workforce. Some 125 of those jobs will be at the TVA Group Inc. and the magazine division will cease publication of two magazines: CHEZ Soi and Tellement bon. TVA Group is one of the largest broadcasters and publishers of French content in North America.

“In Quebec as elsewhere in the world, our industry is facing ongoing disruption,” Julie Tremblay, chief executive of Quebecor Media Group and TVA Group Inc, said in a statement. "We have therefore taken a number of initiatives over the past two years to adapt to the changes, including the creation of Quebecor Media Group, an integrated media company, and the acquisition and sale of various properties. Today it is clear that we must continue our transformation in order to further adjust structural costs and become more agile."  

Tremblay did not say what the likely cost of restructuring would be or what savings would result.

The cutbacks parallel the announcement in September that Rogers Communications Inc. will stop publishing four of its magazines in the new year and sell all of its French language and business-to-business publications. 

The TVA Group reported a $32.5 million net loss in the third quarter. 

TVA Group magazine division revenue was up but company takes $40 million write down

Quebecor Media's TVA Group has recorded a goodwill impairment charge against its magazine division of about $40 million for the first nine months of 2016. The company had an adjusted operating income of $5.7 million in the magazines segment, a $1.9 million (49%) improvement "mainly reflecting operational synergies realized since the integration of the magazines acquired from Transcontinental and other cost-cutting initiatives."

"While we recorded an increase in adjusted operating income in the magazines segment, the continuing downward trend in the magazines industry's operating revenues, particularly advertising revenues and newsstand sales, led the Corporation to conclude that a $40.1 million non-cash charge for impairment of goodwill had to be taken," said Julie Tremblay, president and chief executive officer said in a release.

TVA Group is, in addition to being the leading publisher of French-language magazines and a leader in publishing English language titles, is involved in broadcasting, film and audiovisual production. 

TVA announced a net loss attributable to shareholders of $32.5 million, or a loss of $0.75 per share, in the third quarter, compared with a net loss attributable to shareholders of $36.5 million, or a loss of $0.84 per share, in the same quarter of 2015. (Most of the losses were attributed by the company to the broadcasting and production segment -- particularly "a decrease in the adjusted operating income of TVA Network and the "TVA Sports" channel, which was affected by the concentration of costs related to broadcasting the World Cup of Hockey in September 2016" -- and film production and audiovisual divisions.) 

This was the year (in April) during which TVA Group acquired 14 magazines from Transcontinental Inc., four of which are owned and operated in partnership, as well as three websites, custom publishing contracts and book publishing operations, for a purchase price of $56,286,000 in cash. It transferred the acquired book publishing operations to Sogides Group Inc., a corporation it controls, for $720,000. 

3Q revenue for the magazine division was $30 million; for the first nine months, $86.7 million. Adjusted operating revenue for the magazine division was $5.7 million for Q3 (compared with $3.8 million in the same period in 2015) and $11.7 million for the first nine months ($6 million.) 

TVA Group magazine division soars in Q1 2016, based on Transcon acqusitions

Revenues for the magazine segment of the TVA Group doubled in the first quarter of 2016, from $14,878,000 to $27,487,000 in Q1 of 2015. Adjusted operating income for magazines was $2,059,000, up $1,094,000(+113%).

The performance of the magazine division was mainly driven by a major acquisition from Transcontinental Media in mid-2015 as well as the pruning of expenses. The magazines segment includes TVA Publications inc. and Les Publications Charron & Cie inc., and publishes French- and English-language magazines. It is North America's largest broadcaster of French-language entertainment, information and public affairs programming, largest publisher of French-language magazines, and one of the largest private-sector producers of French-language content as well as being one of the largest publishers of key English language titles such as Canadian Living. 
. 

Revenues
Broadcasting & Production	$	105,963	$	103,523
Magazines		27,487		14,878
Film Production & Audiovisual Services		15,512		10,249
Intersegment items		(3,439)		(2,136)
		145,523		126,514

Over all, the TVA Group Inc., a subsidiary of Quebecor Media Inc., announced recorded adjusted operating income in the amount of $0.3 million Q1, compared with a $7.7 million adjusted operating loss in the same quarter of 2015. The Corporation also declared a net loss attributable to shareholders of $7.4 million or a loss of $0.17 per share for the quarter, compared with a net loss attributable to shareholders of $14.7 million or a loss of $0.57 per share in the same quarter of 2015.

Canadian Gardening to be closed this spring by TVA Publications

Sept. 2015 issue

The TVA Group is to cease operating Canadian Gardening and its web presence, canadiangardening.com, following publication of the spring issue, according to a post on Mastheadonline. A statement from the company was as follows:

TVA Publications has decided to concentrate on its strongest brands and will allocate the required staff and resources to keep strengthening their positioning. In that context, we will cease the activities of the Canadian Gardening magazine. The final issue will be the Spring 2016 issue (hitting newsstand on March 21, mailed to subscribers on March 8). 

This consolidation strategy is the best way for the company to optimize the reach of its flagship titles in a fast-changing market. TVA Publications will maintain a strong presence in every segment of the industry – fashion, beauty, home decor, cooking, celebrities & entertainment. We remain fully committed to print magazines as a core component of TVA Publications' business strategy while continuing to develop its brands on other platforms.

Canadian Gardening was purchased by Transcontinental Media in 2004 from its founder, Avid Media Inc. along with Canadian Home Workshop and Canadian Home and Country (both no longer publishing) and Outdoor Canada. (now owned by Cottage Life Media.) Later, Transcontinental Media was bought by TVA, the magazine publishing arm of Quebecor. At its peak Canadian Gardening had a measured readership of approximately 2.5 million.

Quebecor Media's TVA magazines show continuing newsstand and ad sales weakness

Quebecor Media's TVA Group reports that it lost $2.6 million or 6 cents a share in Q2 of 2015. That's an $11.8 million swing from last year's net income. Most of the losses are attributed to the broadcasting and production segments difficulties with sports specialty services. TVA's adjusted operating income declined 18% compared with the same quarter in 2014, and most of this was largely blamed on a weak advertising environment.

Contributing to that decline was the TVA Group’s magazines segment which, though it reported a $1.2 million adjusted operating income in the second quarter, represents a 58.6% decrease in income compared to the same quarter in 2014. TVA Group attributes the decline in its Magazines segment primarily to a 20.2% decrease in newsstand revenues and a 10.3% decline in advertising revenues, partially offset by the adjusted operating income generated by the magazines acquired from Transcontinental Inc. on April 12, 2015.

The company said it expected to see better contributions from the new titles in the 3rd and 4th quarter. 

Canadian Living team hardest hit in layoffs by new owners, TVA Group

It was predicted -- and predictable* -- that the sale of Transcontinental Media's consumer magazines to the Quebecor Media's TVA Group would result in major organizational changes. A report in Mastheadonline says that some 25 layoffs were made late last week, many of them (paradoxically, it might seem) at the flagship brand Canadian Living. The layoffs included 

• longtime executive editor Doug O’Neill
• senior web editor Jennifer Gruden
• senior features editor Robin Stevenson
• assistant art direct Aimee Nishitoba
• associate art director Shelley Frayer 

In addition, senior marketing director communications and events Tracy Finkelstein, and senior marketing specialist Erin Quinn were let go. Ray Oster was laid off from the digital team as were Melissa Morra, digital product director Andrea Kolber, digital project manager Krystal Wong, and Scott Carefoot, product manager of The Hockey News.

Transcontinental Media sold 15 consumer magazines and related websites in eastern Canada to the TVA Group and in late May sold its Western Magazine Group (Vancouver Magazine and Western Living) to Yellow Pages.  

*TVA Group made no secret that it was going to focus the brands it acquired in the digital area. 

TVA Group magazine division sees 11.1% Q1 drop in revenues, 57.1% decline in profits

In its first quarter financials ending March 31, TVA Group's magazine division (TVA Publications Inc. and Les Publications Charron & Cie Inc.) reported an 11.1% drop in revenues, from $15,138,000 to $13,456, resulting in a adjusted operating income of $938,000, down 57.1% from the same period the year before. The company reported that the decline in operating revenue was mitigated by cutting operating expenses by 3.4%, mostly in editorial costs. the largest publisher of French-language magazines

Over all, the TVA Group Inc., a subsidiary of Quebecor Media Inc. and the the largest publisher of French-language magazines in North America, announced a net loss of $14.7 million, compared with $10.2 million in the same quarter of 2014. Most of this was attributed to its broadcasting and production segment.

On April 12, the company closed the deal to acquire 14 magazines, three websites and custom publishing contracts from Transcontinental Media for $55.5 million.

TVA closes deal to acquire consumer magazines from TC Transcontinental

The $55.5 million transaction was completed today whereby TVA Group acquired 14 magazines, 3 websites and custom publishing contracts of TC Transcontinental. As a result, the Quebec-based company now has 300 new employees and acquired the following brands:

• Coup de pouce
• Canadian Living
• Decormag
• Style at Home
• Fleurs Plantes Jardins
• Canadian Gardening
• Quebec Vert
• The Hockey News
• Condo Maison Direct
• Maisons Neuves Rive-Sud et Condos

TVA Group will keep a 51% stake in Les Publications Transcontinental-Hearst inc. which operates Elle Canada and Elle Quebec, in partnership with the Hearst Group which holds a 49% stake.

TVA Group and Groupe Bayard together hold 50% of the shares of Publications Senior Inc., that publishes Le Bel Age and Good Times magazines.

The websites acquired are: 

• recettes.qc.ca
• Quoi manger and 
• On the table 

Custom publishing from the magazines are included in the deal.

Competition Bureau approves sale of TC Media consumer titles to the TVA Group

The Competition  Bureau has  approved the sale of Transcontinental Media's eastern Canadian consumer magazine portfolio (and various related assets) to the TVA Group. The bureau concluded that the transaction, announced in November, was unlikely to result in a substantial lessening or prevention of competition.

"In reaching this conclusion, the Bureau also considered the general decline in readership of magazines, in part attributable to the increasing importance of the Internet as an alternative for readers," said the announcement. 

Related posts:

• Transcontinental sells all its eastern Canadian consumer magazines to TVA 

TVA Group's publishing operations slip 16% in Q2 on lower newsstand and ad sales

Quebecor Inc.'s publishing division TVA Group Inc. saw publishing revenues in Q2 fall to $2.6-million from a $3.1-million the year before, on lower newsstand sales and advertising revenues. Operating income for the publishing side was down $450,000.

Over all, however, TVA Group saw its Q2 profit almost double based largely on a 54¢-per-share gain from the sale of its 51 per cent stake in The Cave and 50 per cent stake in Mystery TV. Net income was $23.7-million, or $1 per share — up from $13.8-million, or 58¢ per share, in the same quarter of 2011a s in two specialty television services. Revenue fell slightly to $115.4 million from $117.5 million

TVA Group had posted a Q1 net loss of $39.3 million because of an impairment charge related to greatly increased Quebec government fees for waste recovery services.

President and CEO Pierre Dion Dion said the print divison continues to look for ways to reduce costs and find new business.

 “The growth of the TVA Studio division, which specializes in customized publishing, commercial printed productions and premedia services, augurs well for the expansion of this line of business in the coming quarters,” he said.

Recycling costs result in $32 million charge against earnings of Quebecor's TVA Group

The impact of the huge increases in recycling fees for magazines in Quebec has translated into a quarterly loss for its largest pulishing group, TVA Group Inc. According to a story in the Montreal Gazette, the company, which is the publishing division of Quebecor Media, had a loss of $1.66 a share in Q1, largely because of an impairment charge of $32.2 million logged to cover waste recovery fees for 2010, 2011 and 2012. 

President and CEO Pierre Dion said the new fees applied to magazines are arbitrary and “legally invalid.”

“They seriously compromise the financial viability and stability of an industry that makes a positive contribution to the cultural sector of our society,” Dion said in a statement.

“We are currently examining the legal remedies available to ensure that our rights are respected.”

The province of Quebec increased its charges for the Blue Box recycling program last June and, according to Magazines Canada calculations, publishers will see payments up about 340% in 2012, the year the industry is being expected to cover 90% of the costs of recycling magazines. 

The fees being charged to Quebec publishers are approximately seven times what is charged in Ontario and, under Bill 88, they can no longer use contra advertising to pay for their fees. The whole issue of U.S. and foreign magazines paying nothing towards the program has yet to be addressed.