CanWest confident on profit forecasts

WELLINGTON - Broadcaster CanWest MediaWorks NZ Ltd today said it will meet or exceed full year profit forecasts after today reporting a 12 percent rise in first half earnings.

CanWest, which listed on the NZSX in July last year, said its earnings before interest, income tax, depreciation and amortisation (ebitda) for the six months to February 28 were $37.9 million, an increase of 12 percent on the same period a year earlier.

Group revenue for the half rose by 8 percent to $124.6 million.

"Our radio and television brands have continued to benefit from their excellent audience profiles in the market, and a sustained strong New Zealand economy," CanWest MediaWorks chief executive Brent Impey said.

The company's television business TVWorks' ebitda rose 27 percent to $20.2 million assisted by positive earnings from its C4 music channel. RadioWorks' ebitda rose by 7 percent to $19 million for the period.

Mr Impey said while the first half of the fiscal year was traditionally stronger the second half in the broadcasting industry, "the company was on track to meet or exceed previously stated projections".

CanWest listed in July last year at $1.65 a share after Canadian media giant CanWest Global Communications Corp floated off 30 percent of its New Zealand television and radio assets.

On Friday its shares last traded at $2.00. CanWest will pay a fully imputed 4c share dividend on May 16.

Mr Impey said Canwest had completed " a number of strategic initiatives" during the first half, including rebranding 15 local radio stations to More FM, the launch of New Zealand music broadcaster Kiwi FM in Auckland, Wellington and Christchurch and the re-branding of several local stations to The Breeze's easy listening format, and the acquisition of FM frequencies in Coromandel and Gisborne.

It launches its Radio Live network next week.

Mr Impey also said the launch of TV3's Campbell Live current affairs show had been "the most significant initiative".

"The show has exceeded expectations and has performed particularly strongly in metropolitan markets."

- NZPA