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TORONTO, Canada - CanWest Global Communications, Canada's biggest media company, reported a higher fourth-quarter profit today as gains on the sale of the company's New Zealand and Canadian radio assets boosted results.
CanWest, which owns Canada's Global television network and a national chain of daily newspapers, said it earned C$197.5 ($277.62 million), or C$1.11 a share, in the three months ended Aug. 31. That was up from a profit of C$154.9 million, or 87 Canadian cents a share, in the same period a year earlier.
However, CanWest said that losses from continuing operations rose to 30 Canadian cents per share in the quarter from 7 Canadian cents a year earlier.
CanWest booked C$252 million in asset-sale gains in the quarter. A year earlier, it gained C$164 million after selling TV3 Ireland.
Revenue rose 11 per cent to C$679 million, ahead of analyst expectations of C$648.3 million, according to Reuters Estimates.
Chief executive Leonard Asper told analysts in a conference call that the months since the end of the company's fourth quarter have been promising.
"I think we're off to a good start in the quarter," Asper said. "September and October revenues are exceeding expectations... and are certainly supporting the statement that we're going to be showing growth this year in the company overall."
In August, CanWest and a private-equity affiliate of US investment bank Goldman Sachs closed their C$2.3 billion takeover of the broadcasting assets of specialty-TV group Alliance Atlantis Communications Inc.
CanWest said on Friday the deal is now awaiting a regulatory hearing to determine whether an application for the change of control will be approved.
"We are currently in a dead heat with our major conventional competitor in Canada with respect to audience share," the company said of its domestic TV operations. "As we look ahead for the year, the successful acquisition and integration of Alliance Atlantis ... remains a priority."
Canadian TV revenue inched down to C$127 million from C$130 million a year earlier. In Australia, TV revenue rose to C$205.4 million from C$156.6 million.
CanWest's publishing revenue, which encompasses its newspaper operations, rose to C$305.3 million from C$294 million.
The company's shares finished 15 Canadian cents lower at C$7.67 on the Toronto Stock Exchange on Friday.
- REUTERS
