MONTREAL, Aug.1st, 2024 /CNW/ - TVA Group Inc. (TSX:TVA) ("TVA Group" or the "Corporation") today reported its consolidated financial results for the second quarter of 2024. Highlights Second quarter 2024 $143,951,000 in revenues, a $5,191,000 (3.7%) increase compared with the second quarter of 2023. $2,905,000 (-$0.07 per basic share) net loss attributable to shareholders, a $4,942,000 ($0.11 per basic share) favourable variance compared with the same quarter of 2023. $13,170,000 in consolidated adjusted EBITDA,1 a $17,013,000 favourable variance compared with the same quarter of 2023. $7,624,000 in adjusted EBITDA1 in the Broadcasting segment, a $12,163,000 favourable variance mainly due to a favourable retroactive adjustment of royalty rates of the "LCN" channel, as well as some cost savings that more than offset the decrease in advertising revenues. $5,425,000 in adjusted EBITDA1 for the Film Production & Audiovisual Services segment ("MELS"), a $5,838,000 favourable variance primarily due to higher volume of soundstage and equipment rental activities, with major productions filming at our studios. $272,000 in adjusted EBITDA1 in the Magazines segment, a $37,000 unfavourable variance due mainly to lower revenues, partially offset by cost savings. $260,000 in negative adjusted EBITDA1 for the Production & Distribution segment, an $842,000 unfavourable variance mainly due to a decrease in gross margin for Incendo, partially offset by savings in administrative expenses. During the second quarter of 2024, the Corporation performed an impairment test on the Production & Distribution cash-generating unit due to the competitive industry environment and the slowdown in its volume of activities. The Corporation concluded that the recoverable amount of the unit was less than its carrying amount and a goodwill impairment charge of $7,781,000 was recorded. __________________________________ 1 See definition of adjusted EBITDA below. Pierre Karl Péladeau, acting President and CEO of TVA Group, commented: "While we are beginning to realize the savings associated with the reorganization initiatives we announced last year, it is important to note that our improved performance is largely due to the retroactive adjustment of royalty rates for the "LCN" channel, as well as the return of foreign producers to MELS. "Results in the Broadcasting segment continue to be adversely affected by the decline in our advertising revenues and the many challenges facing the industry. Excluding the "LCN" royalty adjustment, adjusted EBITDA1 for the Broadcasting segment would still have been negative. That's why we're continuing our efforts to obtain fair market value for all our specialty channels, and we're counting on the CRTC's upcoming arbitration decision on royalties for "TVA Sports" to ensure that we receive the fair value from Bell TV that we've demanded for years. "We continue to press government authorities for regulatory relief, the application of which continues to be delayed. This flexibility is all the more necessary to support Canadian broadcasters, especially since the contributions from foreign online companies, required by the CRTC as part of the implementation of the new Broadcasting Act, will not inject any real new money into our system. "Despite the difficult environment, TVA Group continues to hold the highest market share in Quebec at 42.5% for the second quarter. The "TVA Sports" channel enjoyed exceptional growth of 1.0% for the period, due in part to the presentation of the National Hockey League playoffs and Euro 2024, the final of which was also broadcast on TVA Network and reached as many as 600,000 viewers. The "Témoin" channel, which launched its programming in April 2024, saw significant growth of 0.4 points, while the "LCN" news and public affairs channel grew by 0.1 points, remaining Quebec's most-watched specialty channel. TVA Network concluded its winter programming schedule with 3 of the top 5 shows in Quebec, including the reality TV show Sortez-moi d'ici!, with an average audience of over 1.5 million viewers, La Voix and the daily series Indéfendable. TVA Group was also chosen to broadcast Céline Dion's first French-language interview, which drew almost 1.4 million viewers, as part of the international launch of the I Am: Céline Dion documentary. "In the Film Production & Audiovisual Services segment, our services continued to be in high demand in the second quarter, particularly our soundstage and equipment rental activities. The Skydance production was completed during the quarter, and MELS is well positioned to attract even more productions with the increase in the film production services tax credit from 20% to 25%. "The Magazines segment reported a decrease in profitability due to the difficult situation in an industry that has been in decline for a number of years, exacerbated by the reduced government support. Grants from the Canada Periodical Fund's regular program have decreased considerably due to program modifications. We will of course continue our efforts to convince Canadian Heritage to take action in this precarious situation. "The Production & Distribution segment had a more difficult second quarter than last year and continues to be affected by a slowdown in orders in the U.S. market. The English-language market was particularly hard hit by the pandemic, the labour disputes in the U.S. industry and the financial difficulties of over-the-air channels and some platforms, resulting in a significant decline in the number of film and series projects launched. "In closing, in this year of transition, as we continue to implement our major reorganization plan, TVA Group is staying the course with its responsible management and is focusing all its efforts on maintaining the sustainability of its business." __________________________________ 1 See definition of adjusted EBITDA below. Definition Adjusted EBITDA In its analysis of operating results, the Corporation defines adjusted EBITDA, as reconciled to net income (loss) under IFRS, as net income (loss) before depreciation and amortization, financial expenses (income), restructuring costs and other, income tax expense (recovery) and share of income of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to other financial operating performance measures or to the statement of cash flows as a measure of liquidity. This measure should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its segments. This measure eliminates the significant level of depreciation and amortization of tangible and intangible assets, including any asset impairment charges, as well as the cost associated with one-time restructuring measures, and is unaffected by the capital structure or investment activities of the Corporation and its segments. Adjusted EBITDA is also relevant because it is a significant component of the Corporation's annual incentive compensation programs. The Corporation's definition of EBITDA may not be the same as similarly titled measures reported by other companies. Forward-looking information disclaimer The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include the possibility that the reorganization plan announced on November 2, 2023 will not be carried out on schedule or at all, the possibility that the Corporation will be unable to realize the anticipated benefits of the reorganization plan on schedule or at all, the possibility that unknown potential liabilities or costs will be associated with the reorganization plan, the possibility that the Corporation will be unable to successfully implement its business strategies, seasonality, operational risks (including pricing actions by competitors and the risk of loss of key customers in the Film Production & Audiovisual Services and Production & Distribution segments), programming, content and production cost risks, credit risk, government regulation risks, government assistance risks, changes in economic conditions, fragmentation of the media landscape, risk related to the Corporation's ability to adapt to fast-paced technological change and to new delivery and storage methods, labour relation risks, and the risks related to public health emergencies, as well as any urgent steps taken by government. The forward-looking statements in this document are made to give investors and the public a better understanding of the Corporation's circumstances and are based on assumptions it believes to be reasonable as of the day on which they were made. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations, please refer to the Corporation's public filings, available at www.sedarplus.ca and www.groupetva.ca, including in particular the "Risks and Uncertainties" section of the Corporation's annual Management's Discussion and Analysis for the year ended December 31, 2023. The forward-looking statements in this news release reflect the Corporation's expectations as of August 1, 2024 and are subject to change after that date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by the applicable securities laws. TVA Group TVA Group Inc., a subsidiary of Quebecor Media Inc., is a communications company engaged in the broadcasting, film production and audiovisual services, international production and distribution of television content, 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.  The Condensed Consolidated Financial Statements as at June 30 2024, with notes, and the interim Management's Discussion and Analysis can be consulted on the Corporation's website at www.groupetva.ca. TVA GROUP INC.   CONSOLIDATED STATEMENTS OF LOSS (unaudited) Three-month periods      Six-month periods      (in thousands of Canadian dollars, except per-share amounts)  ended June 30      ended June 30      Note 2024 2023 2024 2023 Revenues  2 $ 143,951 $ 138,760 $ 273,112 $ 274,863 Purchases of goods and services 3 103,405 108,544 221,961 232,286 Employee costs  27,376 34,059 57,282 70,397 Depreciation and amortization  5,592 6,973 11,802 14,155 Financial expenses (income)  4 1,513 (43) 2,751 (161) Restructuring costs and other 5 7,850 120 5,958 1,022 Loss before income taxes (income tax recovery) and share of  income of associates (1,785) (10,893) (26,642) (42,836) Income taxes (income tax recovery) 1,461 (3,006) (5,215) (11,325) Share of income of associates (341) (40) (619) (131) Net loss attributable to shareholders $ (2,905) $ (7,847) $ (20,808) $ (31,380) Basic and diluted loss per share attributable  to shareholders $ (0.07) $ (0.18) $ (0.48) $ (0.73) Weighted average number of outstanding and diluted shares 43,205,535 43,205,535 43,205,535 43,205,535 See accompanying notes to condensed consolidated financial statements.   TVA GROUP INC.   CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) Three-month periods      Six-month periods      (in thousands of Canadian dollars)  ended June 30      ended June 30      Note 2024 2023 2024 2023 Net loss attributable to shareholders $ (2,905) $ (7,847) $ (20,808) $ (31,380) Other comprehensive items that will not be reclassified to loss: Defined benefit plans: Remeasurement gain 9 2,600 - 16,600 - Deferred income taxes (700) - (4,400) - 1,900 - 12,200 - Comprehensive loss attributable to shareholders $ (1,005) $ (7,847) $ (8,608) $ (31,380) See accompanying notes to condensed consolidated financial statements.   TVA GROUP INC.   CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (in thousands of Canadian dollars)  Equity attributable to shareholders