CanWest earnings drop due to programme costs

CanWest MediaWorks said today its first quarter earnings fell 11 per cent on the same period a year ago, as it invested heavily in programming.

The media company, which owns key radio networks and TV3 and C4, reported earnings before interest and tax (ebit) of $23.5 million for the three months to November 30.

CanWest chairman Tom Strike said the decision to play more local programmes on TV3, along with investment in new initiatives Campbell Live and Radio Live, had led to an increase in programming costs.

In the full year, assuming current market conditions prevail, CanWest expected costs to reduce.

"The company will finish the financial year with an ebitda improvement over its 2005 financial year," Mr Strike said.

Revenue in the first quarter rose 4 per cent to $72.8 million.

TVWorks' revenue was up 4 per cent for the quarter to $44 million, while RadioWorks' revenue climbed 3 per cent to $28.8 million.

Shares in CanWest, which listed in July last year when its Canadian owner, CanWest Global Communications Corp, floated 30 per cent of the company on the local bourse, last traded yesterday at $1.75.

The company's annual meeting is in Auckland today.

- NZPA