Montreal: Despite doubling its size in the past 12 months and its leading position in the French-language tv market, TVA Group’s Dec. 12 annual general meeting was a decidedly low-key affair.

Important personnel have left the company, especially on the production side at TVA International. The multimedia company is effectively stuck in regulatory limbo and its share price (tva.b) is hovering near its 52-week low.

One observer close to the company says ‘the situation is very touchy and sensitive’ following Quebecor’s $5.4-billion takeover of tva parent Videotron this fall. And the driver of tva’s business, the sale of commercial airtime, has slowed in what the same observer calls an ‘underachieving’ effort on the part of the French-language tv network.

The agm was chaired by tva board chairman Claude Chagnon and president and ceo Daniel Lamarre, neither of whom has a future with tva.

With Videotron’s holding company out of the picture, Chagnon has quit as ceo of the cable company, and says he’ll resign as chairman of tva after the crtc decides on Quebecor’s takeover of Videotron, a decision expected in June. A few days prior to the agm, Lamarre announced he was leaving to become president of Cirque du Soleil’s new international business venture unit.

Lamarre told the media he’s leaving tva because of his strong attraction to the Cirque’s international branding activities, but he’s doing so without completing one of his principal mandates – seeing through tva’s much sought-after entry into the English-language specialty tv market.

Uncertain future

In the short run, Quebecor’s takeover has created an uncertain future for tva, with the network stuck in what Lamarre calls ‘a holding pattern.’

TVA International says it will focus on its animation and youth division, headed by Louis Fournier, and its theatrical division, headed by Stephen Greenberg, but its immediate future as a live-action producer of coproduced series and u.s. cable and pay movies is certainly in doubt.

Canadian drama head Andre Picard left when tva purchased Motion International last spring. Motion’s Canadian tv slate was purchased wholesale by Zone 3. International drama producer Jacques Methe has left tva along with veteran live-action youth producer Michel Lavoie and animation division head Andre Belanger.

On the broadcast side, senior vp Andre Provencher has resigned, as has vp news and public affairs Marc Blondeau.

With Lamarre gone by Jan. 15, tva’s top manager becomes Raynald Briere, senior vp broadcasting.

Consolidated operating revenues for the year ending Aug. 27 reached $289.3 million, compared to $239.1 million for fiscal ’99, an increase of 21%.

Revenues from the company’s main sector, broadcasting, were $224.3 million, close to $300,000 less than last year. Publishing, consolidated since Jan. 17, generated revenues of $29.4 million, while international production and distribution brought in $26 million, $24.4 million of which represents Motion International’s activities over a two-and-a-half-month period. Revenues from marketing are $13.2 million in 2000.

tva’s net income is $40.2 million, or $1.31 per share, up 32% over last year. Net income for 2000 includes net gains on dilution of $16.7 million, or $0.54 per share. *