TVA Group recorded a drop in revenues and net profit in the third quarter of its fiscal year 2022 compared to the same period last year.
The company reported Thursday that net income attributable to shareholders was $7.6 million for the quarter, or 18 cents per share. This is therefore a decrease compared to the third quarter of 2021, which had reached net income of $ 19 million, or 44 cents per share.
Revenues also fell by $20.2 million in the third quarter of 2022 compared to that of 2021, settling at $130.5 million.
This decrease is mainly attributable to a decline in profitability in the television broadcasting sector due to the “difficult advertising environment”, according to the interim president and chief executive officer, Pierre Karl Péladeau.
“Despite this drop in revenue, we continued to increase our investments in content, a strategy that has allowed us to stand out and maintain our leadership position despite strong competition, both from traditional platforms and from web giants who have access to significant capital,” he said in a press release.
“While the unfavorable trend in advertising revenues continues to erode the profitability of our television activities, it is important to remember that advertising is essential to private generalist television, which relies on this unique source of revenue to ensure its sustainability”, he argued.
Results for the quarter in the Magazines sector were affected by the drop in government aid and an 11.5% decrease in newsstand revenues.