TV3 returns to profit while bleeding continues at CanWest

CanWest New Zealand, which Canadian owner CanWest is attempting to sell, reported earnings before interest, tax, deprecriation and amortisation of $20.6 million, a 139 percent increase from the previous financial year's figure of $8.6 million.

"While our radio business continues to go from strength to strength, it is very pleasing to also see a significant improvement for TV3," CanWest New Zealand chief executive Brent Impey said.

TV3 moved from a $8.5 million ebitda loss last year to an ebitda profit of $3.2 million this year.

Revenue for TV3 climbed from $86 million last year to $94 million in the financial year ended August 31.

Improved ratings performance at TV3, combined with the flow-on benefits of a new sales structure, increased operating cost efficiencies, and improved foreign exchange rates have all made significant contributions to the channel's turnaround, Mr Impey said.

The channel's peak time audience share in its target market of 18-49 year olds has increased 3 percentage points to a 25 percent average over the fiscal year, up from a 22 percent share in the previous year.

"The outlook for the television market in New Zealand is currently buoyant, which augers well for the performance of TV3 in the current financial year," Mr Impey said.

Ebitda profits for CanWest New Zealand's radio business rose by 6 percent to $23.7 million, up from $22.4 in the previous financial year.

"The radio market in New Zealand continues to be robust and competitive, and benefits from a strong New Zealand economy," Mr Impey said.

Revenue for the radio business grew to $88.1 million, up from $86.9 million in the previous financial year.

"Strong performances by all of our radio brands, including More FM, The Edge, Solid Gold, The Rock, Radio Pacific, Local Works and Channel Z, has been reflected in strong audience support, as measured by industry research, and strong client support, as shown in revenue figures," Mr Impey said.

CanWest Global Communications, Canada's largest newspaper publisher, reported a wider fourth-quarter loss as sales fell from a year earlier.

CanWest reported a loss of $C104.1 million ($NZ136 million) or 59 Canadian cents per share, in the quarter ended August 31, compared with a loss of $C37 million, or 22 Canadian cents per share, in the corresponding period last year.

Revenues at the Winnipeg-based firm, which also owns the Global television network, fell to $C484.1 million from $C508.4 million.

Three analysts surveyed by Thomson First Call had expected, on average, a loss of 13 Canadian cents per share.

CanWest, laden with debt, was reported in April to be close to selling the New Zealand operations but today said it had nothing further to report.

"At this point there is no change in what we have said before and that is we have included the New Zealand broadcasting in assets for which we are seeking buyers. There is no announcement to be made with respect to specific potential buyers," said CanWest's Corporate Affairs Vice President, Geoffrey Elliot.

The company had no time-frame by which it wished to sell the assets.

"The New Zealand assets are good assets and the year-end results show a significant improvement compared with the year before. We are not under any pressure to sell anything in relation to our financial circumstances and therefore they would only go for what we would regard as fair value.

"Until someone comes up with a bid that reflects the value that we think the assets are worth then we won't be in any particular hurry to sell them."

Mr Elliot said CanWest was selling the assets as part of a debt reduction programme and the New Zealand assets were deemed non-core.

Chief executive Leonard Asper said reducing debt remained the company's top priority.

Australia's Ten network, 57.5 percent owned by CanWest, has been tipped as a potential buyer of TV3. Ten is not slated for sale and Mr Elliot said it was up to that company if it wanted to buy TV3.

Ten's ebitda earnings rose 18 percent to $C82 million.

In the August quarter, TV3/TV4 revenue rose to $C20.3 million from $C15.3 million a year earlier and operating profit rose to $C2.1 million from a loss of $C2.4 million.

The New Zealand radio revenue rose to $C15.8 million from $C13.6 million and operating profit rose to $C4.7 million from $3.6 million.

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