2024-11-01 10:37:00
TVA Group’s revenues decreased 5% in the third quarter compared to the same period last year, mainly due to the continued decline in advertising revenues.
During the quarter ending September 30, TVA revenues reached $112.4 million, compared to $118.6 million in the same period last year.
According to the interim president and CEO of TVA Group, Pierre Karl Péladeau, this decline reflects the “difficult environment” in which the company continues to operate, mainly due to the drop in advertising revenues.
VAT revenues linked to advertising increased from $50.1 million in the third quarter of last year to $45.9 million for the same period this year.
Even so, the company managed to generate net income attributable to shareholders of $2.6 million, or six cents per share, compared to a loss of $639,000, or one cent per share, in the same period. last year.
In a press release, Mr. Péladeau noted that TVA “maintains rigorous financial discipline by continuing to reduce its operating costs and continues its efforts to obtain additional sources of revenue.”
In the third quarter, TVA revenues fell year-on-year in the television and magazine sectors, but increased in the film and audiovisual services sector, as well as in the production and distribution sector.
A year ago, the TVA Group announced a reorganization plan which included, among other things, the elimination of 547 jobs.
However, according to Mr. Péladeau, “the savings generated by this plan during the last quarter were largely offset by the costs incurred by the application of the new federal tax on digital services”.
“While this 3% tax was initially intended to target large foreign digital companies so that they contribute to our Canadian system, it is unacceptable, and above all inequitable, that local companies must suffer the significant repercussions of this measure which results, for the latter only, in double taxation,” he denounced.
Mr. Péladeau therefore asks Ottawa to revise the application of the tax in order to exclude Canadian companies “which already pay their taxes in Canada and which contribute largely to the broadcasting system”.
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**Interview with Pierre Karl Péladeau, Interim President and CEO of TVA Group**
**Interviewer:** Thank you for joining us today, Mr. Péladeau. TVA Group recently reported a 5% decrease in revenues for the third quarter. Can you provide us with some insights into what factors contributed to this decline?
**Pierre Karl Péladeau:** Thank you for having me. As you pointed out, the primary factor for the revenue decline was the significant drop in advertising revenues, which fell from $50.1 million last year to $45.9 million this year. This trend reflects the challenging environment we are currently navigating in the media landscape.
**Interviewer:** Despite the revenue drop, TVA managed to generate a net income of $2.6 million, which is quite an improvement from the loss of $639,000 last year. What strategies did TVA implement to achieve this?
**Pierre Karl Péladeau:** Our focus has been on maintaining rigorous financial discipline. We’ve been actively reducing our operating costs and exploring additional revenue streams. The net income is a testament to our efforts to streamline operations, especially following last year’s significant reorganization.
**Interviewer:** Can you elaborate on how the reorganization impacted TVA and what the company has focused on since?
**Pierre Karl Péladeau:** The reorganization, which included reducing our workforce by 547 positions, was crucial for our long-term viability. While the savings from these measures are helping, we’ve also faced costs related to the restructuring itself. Moving forward, we are concentrating on growing sectors such as film and audiovisual services, where we saw revenue increases, juxtaposed with declines in television and magazine sectors.
**Interviewer:** What is TVA’s outlook moving forward in this difficult advertising environment?
**Pierre Karl Péladeau:** While the challenges in advertising persist, we remain optimistic about our growth areas. We’re committed to further innovation and diversifying our income sources to enhance our financial resilience. The media landscape is evolving, and we’re determined to adapt and thrive in it.
**Interviewer:** Thank you, Mr. Péladeau. It’s always a pleasure to gain insight into TVA’s operations and future plans.
**Pierre Karl Péladeau:** Thank you for having me. I’m looking forward to sharing more about our progress in the future.
