Canwest Mediaworks Continues Momentum
Canwest Mediaworks Continues Momentum In Third Quarter With 12% Increase In EBITDA
Auckland – CanWest MediaWorks (NZ) today reported its unaudited financial results for the third quarter covering March, April and May 2005. Earnings before interest, income tax, depreciation and amortisation (EBITDA) were $13.4 million, an increase of 12% from the pro forma result for the corresponding period in the previous year.*
Group revenue for the period also increased 12% to $60.4 million, compared to pro forma revenue of $54.0 million in the same period last year.*
“This is an excellent third quarter result for both radio and television, and we remain confident the business is on track to exceed previously stated EBITDA objectives for the financial year,” said CanWest MediaWorks’ Chair, Tom Strike.
TVWorks’ performance has seen its EBITBA improve 34% for the quarter to $6.9 million, up from $5.2 million, with revenue for TV3 and C4 up 14% to $34.6 million, up from $30.3 million.
“The performance of our television business is particularly pleasing, and to have achieved these results in the same quarter as launching our new Campbell Live show, which had significant establishment costs, shows the core strength that exists in our TV business,” said CanWest MediaWorks CEO, Brent Impey.
“Our revenue improvement for TV supports our current strategies, backed with solid ratings and performance for both TV3 and C4.
“3 News and Campbell Live ratings, especially in urban centres, have exceeded our expectations and these programmes continue to strengthen our prime time performance. CSI and the Monday Night Movie have also been strong performers.
“On C4, programming highlights have included the new season of the animated show South Park, a live concert featuring New Zealand band Shihad, and local quiz show Pop goes the Weasel all of which have attracted strong audiences for the network,” Mr Impey said.
RadioWorks has also continued to perform exceptionally well with a 6% EBITDA improvement to $7.1 million, up from $6.7 million. Revenue has climbed 9% to $25.8 million, up from $23.7 million.
“RadioWorks has also achieved excellent results, while at the same time incurring the launch costs of our new radio network, Radio Live. The station has had a very positive start,” Mr Impey said.
“Both radio and television have seen significant initiatives this quarter with the launch of Campbell Live and Radio Live.
“To return an immediate positive EBITDA across both radio and television, while absorbing the establishment and launch costs of such major long term strategies, is unprecedented and is a credit to the strong management teams in both radio and television,” Mr Impey said.
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* CanWest MediaWorks acquired RadioWorks and TVWorks at the end of July 2004 as part of a corporate restructuring. Comparative pro forma information for the period 1 September 2003 to 28 February 2004 is based upon the combined financial results of CanWest RadioWorks Limited and CanWest TVWorks Limited.
CanWest MediaWorks (NZ) Limited (NZX: MWL) is New Zealand’s leading private sector broadcast media company. Through its wholly owned subsidiaries CanWest TVWorks Limited and CanWest RadioWorks Limited, it owns and operates the TV3 and C4 television networks, national radio brands The Edge, The Rock, More FM, Kiwi FM, Radio Live, Radio Pacific, Solid Gold and The Breeze, plus several local radio stations.
MediaWorks NZ is a majority owned subsidiary of CanWest
MediaWorks International, a division of CanWest Global
Communications Corp. (TSX: CGS.SV; CGS.NV, NYSE: CWG).
CanWest, an international media company, is Canada’s largest
publisher of daily newspapers, and also owns, operates
and/or holds substantial interests in conventional
television, out-of-home advertising, specialty cable
channels, Web sites and radio networks in Canada, New
Zealand, Australia and