CanWest earnings up 55 per cent

11.30am

The success of music channel C4 and hit shows on TV3 helped broadcaster CanWest Media Works lift its full year earnings by 55 per cent it said today.

CanWest today posted ebitda (earnings before interest, tax, depreciation and amortisation) of $60.9 million for the 12 months to August 31, up from $39.1 million last year.

The result was achieved on revenue of $228.7 million.

CanWest chairman Tom Strike said the company was delighted with the result.

"It is pleasing to see the strong New Zealand economy benefiting both the radio and television sides of our business, with both media enjoying an excellent year in terms of improved revenue and ebitda performance," Mr Strike said in a statement to the NZX.

The company said its television operation TVWorks had "an "outstanding 12 months" with ebitda for the division rising 120 per cent to $29.2 million for the year on a 6 per cent rise in revenue to $127.1 million.

RadioWorks' ebitda improved 25 per cent to $32.4 million on a 10 per cent rise in revenue to $101.6 million.

CanWest chief executive Brent Impey said changing TV4 to C4 "has been a key part of the success story for TVWorks".

Meanwhile, TV3's ebitda had improved 45 per cent over the year to $28.7 million, a result improved by an increase in total audiences between March and August this year.

"This audience strength is a significant factor in driving financial performance," Mr Impey said.

That audience growth had been driven by hit shows like CSI: Crime Scene Investigation, and its spin-off CSI: Miami, he said.

TV3's news continued to be a leading programme for the network.

In addition to the TVWorks' programming strengths, the company improved results by "by focusing on excellent customer service, innovative advertising techniques and improving yields, aided by the implementation of new computer software," Mr Impey said.

RadioWorks' performance had been "rock solid" over the year, Mr Impey said.

CanWest MediaWorks was created in July this year when Canadian media giant CanWest Global Communications Corp floated off 30 per cent of its New Zealand television and radio assets including the flagship TV3 channel through the issue of 68 million shares at $1.53 each, raising $104 million.

The company acquired the parent group's six national New Zealand radio brands -- More FM, The Edge, The Rock, Channel Z, Radio Pacific, Solid Gold -- as well as 22 regional radio station, plus free-to-air channels TV3 and C4.

CanWest shares fell 4c shortly after opening this morning to $1.73. They have traded as high as $1.81 since listing.


- NZPA