MONTREAL, CANADA -- (Marketwired) -- 05/07/13 -- TVA Group Inc. (the "Corporation")(TSX: TVA.B) announces that it recorded a net loss attributable to shareholders in the amount of $5.9 million, or $0.25 per share, in the first quarter of 2013, compared with a net loss of $39.9 million, or $1.68 per share, in the same quarter of 2012.
First quarter operating highlights:
-- Television segment generates operating income(1) in the amount of $663,000. The $5,622,000 improvement is mainly due to: -- positive impact on operating income of the deconsolidation of the results of SUN News since July 1, 2012; -- $1,741,000 increase in operating income at TVA Network, despite a 7.6% decline in advertising revenues.-- Publishing segment generates operating income in the amount of $232,000. The $2,279,000 improvement is mainly due to the impact of recognition in the first quarter of 2012 of a charge related to the adoption of new 2010, 2011 and 2012 rates for business contributions to the cost of waste recovery and recycling services provided by Quebec municipalities, partially offset by a 5.9% decrease in the segment's operating revenues.-- In the first quarter of 2012, a $32.2 million goodwill impairment charge was recognized in the Publishing segment.
"The Television segment's first quarter 2013 financial results showed improvement from the first quarter of 2012, despite a decrease in TVA Network's advertising revenues," said Pierre Dion, President and CEO of the Corporation. "Our French-language specialty services registered a 23.4% increase in subscription revenues, confirming the growing popularity of our specialty services and their content. We are also very pleased by the audience response to 'La Voix,' which drew an average of more than 2.6 million viewers on Sunday evenings and generated considerable buzz on Quebec social networks.
"Our magazines' quarterly newsstand revenues continued to decline year-over-year while advertising revenues were relatively stable. A number of cost-containment initiatives aimed at maintaining the Publishing segment's operating margins were undertaken during the quarter and will continue through the rest of the year, and strategies to stimulate newsstand sales will be implemented in the coming quarters."
Cash flows used in operating activities totalled $2.5 million in the first quarter of 2013 while cash flows provided by operating activities in the amount of $2.3 million were recorded in the same quarter of 2012. The $4.8 million decrease was essentially due to the unfavourable net change in non-cash items, resulting in part from a negative variance in accounts payable and accrued liabilities, which was partially offset by the favourable variance in operating income.
( 1 ) See definition of operating income (loss) below.
Operating income (loss)
In its analysis of operating results, the Corporation defines operating income (loss) as net income (loss) before amortization of property, plant and equipment and intangible assets, financial expenses, operational restructuring costs, impairment of assets and other costs, impairment of goodwill, tax expense, share of loss (income) of associated corporations and joint ventures and net loss attributable to non-controlling interest. Operating income (loss) as defined above is not a measure of results that is consistent with International Financial Reporting Standards ("IFRS"). Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. Operating income (loss) is used by the Corporation because management believes it is a meaningful measure of performance.