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.) 

Rogers makes some more in 2nd quarter, but spends more, too

Rogers Communications reports for its 2nd quarter a 6% revenue increase for media, largely attributed to Sportsnet and the success of the Toronto Blue Jays. But, according to a company release, there was a 7% increase in costs in the quarter in the media division (which includes magazines), compared with the same quarter last year, largely due to lower advertising across radio, publishing and broadcast TV. Operating expenses were attributed to highers sports-related costs, mitigated by cost savings from job cuts in conventional broadcast TV and radio.

Year to date, the 29% decrease in revenue were primarily a result of lower conventional advertising revenue in the first quarter of 2016. [Click to enlarge]

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.

Rogers Communications has 2% growth in Q1, but media division struggles with ad climate

Rogers Communications reports that in the first quarter of 2016 that it had 2% growth overall, driven by 5% incrase in Wireless revenue. Operating revenue was $3.245 million, compared with $3.175 million in the same period in 2015. The company declared a 48 cent-per-share quarterly dividend.

In the media division, which includes some 50 consumer and trade magazines, but the results are combined in the company financials with the Toronto Blue Jays, Maple Leaf Sports and Entertainment and rights to the NHL, television properties (CITY,OMNI, The Shopping Channel and Sportsnet) and radio (55 stations across Canada). Operating revenue decreased 3%, "primarily as a result of lower advertising revenue" in conventional broadcast television, publishing, and radio, This was partly offset by higher sports related revenues. However, media operating losses for the quarter were 53%.

Media Financial Results
	3 months ended March 31
(In millions of dollars, except margins)	2016	2015	% Chg
Operating revenue	448	464	(3)
Operating expenses	497	496	-
Adjusted operating loss	(49)	(32)	53

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. 

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.

Western Magazine Awards seem to have been suspended

By this time each year, entries are usually being submitted to the Western Magazine Awards, but the event seems to be suspended. The executive director, Kate Cockerill, quietly resigned effective March after barely a year in the job. Its website is closed down. When I enquired, acting president Jennifer Giesbrecht said simply: "Please look for an announcement about this year’s awards in the coming weeks."

Cockerill's resignation followed word from Canadian Heritage that it would no longer be funding "celebrations" of magazines and without that funding, it was apparently not possible to carry on. As far as we can determine, no public announcement has yet been made by the awards foundation. 

Last year the WMAs had trouble getting airborne. The event extended its entry deadlines twice in the spring, citing "technical difficulties", although the awards event did take place in September in Vancouver. 

The annual awards were established in 1983 to honour and celebrate editorial excellence in magazine writing, photography, illustration and art direction in the four western provinces. This is accomplished through the annual awards competition, a gala event where winners are announced and recognized with cash prizes, and The Magazine School, an educational program featuring WMA-winning work.

With the loss of federal funding, the foundation board running the event would have been faced with at least a $25,000 deficit. 

(According to latest Canada Revenue filings , the annual total revenues for the Foundation in 2013 was $136,148, of which $36,710 (26%) came from the federal government, $5,800 from the province of BC (4.2%) and the $93,638 balance (69%) from non-receipted fundraising (presumably entry fees and gala dinner tickets.) Total expenditures were $127,917.) 

Rogers's wireless issues depress Q2 results

Rogers Communications Inc. owns and publishes many of Canada's largests circulation and most popular magazines, but you'd hardly know it in light of reporting on the parent company's wireless woes. For instance, the Financial Post reports that Rogers's profit dropped 24% in 2nd quarter growth and the company is facing weak revenue growth and an increasing pressure to pay down the company's roughly $15 billion of adjusted net debt. Yet nowhere is there any reference to its publishing portfolio, which indicates its relatively small contribution to either profit or problems.

Adjusted operating profit in wireless came in at $843-million, up slightly from $821-million a year ago on lower revenue resulting from reductions in roaming rates in 2013 and simplified pricing plans that took effect over the past year.

According to the company's own release, Media in the 2nd quarter accounted for $475 million, up $5 million from the same period a year ago. However, profit, $54 million, was down $10 million from Q2 2013. There was a great deal of discussion about hockey rights on TV, but only a single paragraph that related to magazines, principally a reference to the expansion of Next Issue Canada, the one-price subscription service that Rogers operates in partnership with major U.S. magazine publishers. 

TVA Group publishing revenues down 8% for Q2

The second quarter of 2013 saw an 8% drop in revenue  from the publishing side of the TVA Group, a subsidiary of Quebecor. Revenue from publishing was $15.8 million, down from $17.2 million the same quarter last year.

TVA Group said is had $111.5 million in total revenue for the quarter, down about 1.8% from the same period the year before. Profit was $7 million, down 31%; most of the drop was attributed to operational restructuring.  

French-language publishing  is a relatively small part of the company's main operations in Quebec,which includes the TVA television network and related digital and other print products. TV had flat revenues for the quarter ($96.5 million, down from $97.3 million ) TVA also currently owns 49% of Sun News. 

Caisse is selling back half its holdings to Quebecor Media

Quebecor Media is buying back almost half of the share of its stock now held by the pension fund Caisse de dépôt et placement du Québec. The caisse's share will shrink from 45.% to 24/6%. 

“Our intention was to take advantage of the window of opportunity created by the favourable conditions on the debt markets to increase our interest in Quebecor Media,” said Pierre Karl Péladeau, chief executive officer of both Quebecor Inc. and Quebecor Media.

Quebecor Inc. owns about 54% of Quebecor Media, which in its most recent quarter had revenues of $254 million,  is one of the largest broadcasters in Quebec through TVA Group Inc. and TVA is the largest publisher of French-language magazines in Canada. Its other division, Sun Media, is the largest newspaper publisher in Canada, with 43 dailies and more than 250 community weeklies.