The publications of Section Rouge Média regain profitability, but cinema division faces delays in production of revenues

                                December 31st, 2006     December 31 st, 2005
                                           (audited)                (audited)

    GROSS SALES                         $ 3,634,252              $ 3,733,139
    DIRECT EXPENSES                     $ 1,890,944              $ 2,181,869
    GAIN/(LOSS) BEFORE TAXES            $  (100,192)             $    84,500
    NET LOSS                            $   344,778              $  (126,902)
    NET LOSS PER SHARE                  $     0.011              $     0.006

    LONGUEUIL, QC, April 27 /CNW Telbec/ - SECTION ROUGE MEDIA inc  (TSX-V :
SRO) today published its financial results for 2006 and announced that it had
regained profitability in its publications division, but that its development
expenditures in its cinema division caused a consolidated loss.
    The Company's gross sales of $3,634,252 for the 2006 calendar year
represents a decrease of 2% in comparison to the gross sales of $3,733,139 for
the previous calendar year (2005). The restructuring measures implemented in
the Company's publications division resulted in a pre-tax gain of $194,266.
However, as envisioned within the planned development of the new cinema
division acquired in July of 2006, the Company reports a
divisional/departmental loss of $312,444. The consolidated loss of all
operations is thus $118,178.
    The Company's net loss is $344,778, compared to $126,902 for the period
ending December 31 st, 2005. The net loss per share is $0.011 as compared to a
net loss per share of $0.006 in 2005.
    Company revenues are can be credited solely to its publications division,
the 2% decrease being attributed essentially to a decrease in circulation for
the newspaper Photo Police. The management is pleased to note that all the
Company's publications are now profitable, including its family oriented
magazine publications: Bébé, Junior and Grossesse.
    In the cinema sector, revenues are slightly later in realization than
originally anticipated. The Company therefore must absorb the administration
costs generated by this sector since its acquisition in July of 2006, namely
$312,444. Meanwhile, the independent appraisal of this acquisition establishes
its value higher than the purchase price.
    The financial results are equally affected by the transmission and
financing costs incurred during the past year.
    Because of the Company's positive cash flow and the financing obtained
within the framework of the acquisition of the cinema division, the Company
repaid its long-term debt, in full, as well as the balance ($399,799) of the
purchase price.
    The President and Chairman of the Board of Section Rouge Média inc., Mr.
Richard Desmarais, is said to be particularly satisfied with the financial
results, when considering that 2006 generated investments to diversify the
expansion of the Company in the media field. Moreover,
    "We are always searching for new products which will increase our
revenues and our operating profits and we believe that we are now in a
position to effectuate one or more important transactions in our field",
stated Mr. Desmarais.

    The administration report and the financial statements for the period
ending December 31 st, 2006 are available on the SEDAR site and
on the Company's website at

    Section Rouge Média inc. is a company registered with the growth stock
exchange TSX and the publisher of approximately 30 publications.

    The growth stock exchange TSX has neither approved nor disapproved the
    contents of this communiqué.

For further information:

For further information: Richard Desmarais, President and Chairman of
the Board, Section Rouge Média inc., (450) 677-2556, (514) 999-0003;;

Organization Profile

Section Rouge Média Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890