CanWest Revenue And Ebitda Both Increase
Canwest Mediaworks Revenue And Ebitda Both Increase For First Quarter
Auckland: CanWest MediaWorks (NZ) Limited today reported its financial results for the first quarter of its 2007 financial year. Consolidated revenue for the three months ended 30 November 2006 increased 2% to $74.5 million, compared with the corresponding period last year. Similarly, EBITDA (earnings before interest, income tax, depreciation and amortisation) rose 3% on the same quarter to $24.3 million.
“This is an excellent start to the new financial year, and reveals the extent to which the advertising market has recovered from a somewhat challenging winter in the New Zealand market,” said CanWest MediaWorks Chair of the Board, Tom Strike.
“Television and radio revenue combined is up $1.7 million for the quarter, compared with the same period one year ago, and we believe that this is due to a combination of strong audience levels for television, and a general improvement in economic confidence,” said Mr Strike.
Commenting on the results, CEO Brent Impey said: “We are delighted at the response of the market to the strengthened performance that TV3, C4 and our radio brands have enjoyed,” he said. “TV3’s prime time performance has seen record audience shares in October and November. We have not only been winning share in TV3’s target demographic, but we have also been winning our competitors’ target demographics,” he said.
“3 News’ continued success has seen it achieve a record margin lead ahead of One News amongst 18-49 year olds. In November, 3 News averaged a 40% share of this demographic against One News’ 28% share,” Mr Impey said.
This performance was backed up in the recent Qantas Television Awards with Mike McRoberts winning TV Journalist of the Year, and 3 News winning the team reporting award for Mike’s coverage from Gaza.
Campbell Live collected the best current affairs series award, along with best news or current affairs presenter for John Campbell.
Other successes in the Qantas Television Awards included consumer show Target, comedy Pulp Sport and Inside New Zealand. Mr Impey said that RadioWorks has also had a pleasing first quarter.
“The latest nationwide radio audience survey shows that RadioWorks collectively increased its total audience by more than 18,000 listeners per week, while our competitor shed a similar number of listeners,” he said.
“In the all important consumer demographic of 18-49 year olds, RadioWorks currently has the highest share of audience of any radio company,” he said.
“Combined with our winning performance in this demographic on TV3, CanWest MediaWorks is an increasingly significant force in the market,” he said.
“Following the positive start to the first quarter, we are cautiously optimistic about the remainder of the financial year. Analysis of forward advertising bookings to the end of March, across both radio and television, indicate that optimism is appropriate from a revenue perspective,” said Mr Impey.
Later in 2007 TV3 will undertake its biggest ever single event with the live and exclusive New Zealand hosting of the Rugby World Cup from France.
“It gives me great pleasure to confirm our broadcast partners for this significant event as: Bank of New Zealand, Harvey Norman, Heineken and Telecom.”
“These key brands will be integral to our broadcast coverage – it is through their support that we are able to bring the Rugby World Cup live and free-to-air to all New Zealand. We welcome them on-board as partners with us in this important event.” he said.
This news release contains certain 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 disclaims any intention or obligation to update any forward-looking statement even if new information becomes available as a result of future events or for any other reason.
CanWest MediaWorks (NZ) Limited (NZX: MWL) (website: www.mediaworks.co.nz) 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/Radio Trackside, Solid Gold and The Breeze, plus several local radio stations.
CanWest MediaWorks NZ is a majority owned subsidiary of CanWest Global Communications Corp. (www.canwestglobal.com), (TSX: CGS and CGS.A, NYSE: CWG), an international media company and Canada’s largest media company.
CanWest 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 stations and networks in Canada, New Zealand, Australia, Turkey, Singapore, Indonesia, Malaysia, the United Kingdom and the United States.
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