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Canwest NZ Delivers 60% Ebitda Improvement

Published: Fri 16 Jul 2004 09:57 AM
Canwest New Zealand Delivers 60% Ebitda Improvement For First Nine Months
CanWest New Zealand’s first nine months of the financial year has seen its EBITDA (earnings before interest, taxation, depreciation and amortisation) improve 60% to NZ$45.7 million for the nine months to 31 May 2004, on total revenue of NZ$170.6 million.
The improvement in performance sees TVWorks’ EBITDA up 124% from NZ$9.4 million to NZ$21.1 million for the first nine months. RadioWorks continues its steady strengthening with a 28% EBITDA improvement up from NZ$19.2 million to NZ$24.6 million.
“One of the big success stories in these numbers is the turnaround of C4. From a NZ$5.1 million loss in the first nine months of the 2003 financial year to EBITDA of NZ$240,000 for the first nine months of this financial year, it is a very pleasing result,” said CanWest NZ CEO, Brent Impey. “This turnaround from the old TV4 through the launch of C4 is ahead of schedule, and the encouraging thing is that there is positive growth potential for the music network. The partnering with our key radio brands is an important aspect of C4’s on-going success, and this in turn generates good profile for the radio stations on television.”
“RadioWorks’ consistent and solid growth, combined with good growth for TV3, round out this satisfying nine month result,” said Mr Impey.
Revenue streams also point to good growth for the company, with combined revenue up to NZ$170.6 million for the nine months, a 9% improvement on the first nine months of the previous year.
Combined radio and television revenues increased NZ$3.1 million or 6% for the third quarter (March, April and May 2004) and EBITDA increased NZ$6.6 million or 18% for the corresponding period.
“Demand for advertising time across both radio and television continues to be firm, as is reflected in our improving revenue streams,” Mr Impey said. “We expect the current positive trend in advertising demand to continue in the short to medium term, and our forecast EBITDA of NZ$60 million for the current financial year is well on track.”
This news release contains comments or forward-looking statements that are based largely upon the company's current expectations and are subject to certain risks, trends and uncertainties. These factors could cause actual future performance to vary materially from current expectations. The company may not update or revise any forward-looking statements or comments, whether as a result of new information, future events or otherwise.
CanWest NZ is wholly owned by CanWest Global Communications Corp. (NYSE: CWG; TSX: CGS.S and CGS.A; www.canwestglobal.com), an international media company. CanWest owns, operates and/or holds substantial interests in newspapers, conventional television networks, out-of-home advertising, specialty cable channels, radio networks and web sites in Canada, New Zealand, Australia, and the Republic of Ireland.

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