Canwest posts fall in first quarter profit

TORONTO - CanWest Global Communications Corp, Canada's No 1 media group, reported a weaker first-quarter profit on Tuesday after taking noncash charges related to a debt refinancing and losses on currency swaps.

The broadcaster and newspaper publisher said net income fell to $C35.4 million ($42 million) or 20 Canadian cents a share, in the quarter ended November 30, from $C81.5 million, or 46 Canadian cents a share, a year earlier.

CanWest said its results were hit by the noncash charges stemming from the refinancing of its fixed-rate subordinated debentures and losses on certain cross currency swaps.

"Excluding these charges, earnings after tax would have been approximately $C100 million," it said in a statement.

Consolidated revenues at CanWest rose to $C873 million from $C801 million. Starting this quarter, CanWest has consolidated its stake in Australia's Ten Network Holdings Ltd.

Revenues at the Australian broadcaster rose 16 per cent to $C247 million. Sales at CanWest's Canadian television arm, owner of the Global Television Network, rose 5 per cent to $C200 million.

Overall television revenues rose to $C494 million from $C444 million when other foreign operations were included. In addition to its Network Ten stake, CanWest owns stakes in Ireland's TV3 and New Zealand radio and television group CanWest MediaWorks Ltd.

Revenues at its newspaper and online operations, which include Canada's National Post, the Montreal Gazette, Ottawa Citizen and Vancouver Sun, rose 3 per cent to $C326 million.

- REUTERS