Canwest NZ reports 12 per cent earnings increase

Broadcaster CanWest Mediaworks NZ Ltd today posted a 12 per cent earnings improvement for the first quarter.

The company said earnings before income tax, depreciation, and amortisation (ebitda) totalled $13.4 million for the three months to May 31, a big improvement on the same period a year earlier.

Revenue also increased by 12 per cent to $60.4 million compared with pro forma revenue of $54.0 million in the same period last year.

For the first nine months of fiscal 2005, consolidated ebitda increased 12 per cent to $51.3 million from pro forma ebitda of $45.7 million the previous year.

Revenue for the year to date was up 9 per cent to $185.0 million from the pro forma revenue of $169.1 million the previous year.

Shares in the company, which listed on the NZSX in July last year after parent company CanWest Global Communications Corp floated 30 per cent of the company, closed yesterday at $1.85, against a year high of $2.44 and a low of $1.53.

The pro forma results for the previous financial year reflect the combined results of CanWest TVWorks Ltd and CanWest RadioWorks Ltd, prior to the sharemarket listing.

CanWest International president Tom Strike described the results as "excellent" , adding that the company remains on track to exceed its profit objectives for the financial year.

Ebitda at TVWorks for the quarter was up 34 per cent to $6.9 million.

Brent Impey, CanWest MediaWorks' New Zealand chief executive, pointed to the solid ratings for Campbell Live and the revamped 3 News as major contributors to continued revenue growth.

"3 News and Campbell Live ratings, especially in urban centres, have exceeded our expectations and these programmes continue to strengthen our prime time performance," he said.

RadioWorks recorded an ebitda increase of 6 per cent to $7.1 million.

Mr Impey said RadioWorks experienced significant start-up costs during the period for Radio Live, its recently-launched news and all-talk radio network.

Radio Live has had a "very positive start," he said, as has the re-branding and launch of Kiwi FM, New Zealand's only all domestic music channel.

- NZPA