CanWest rates ahead of its profit forecasts

CanWest MediaWorks' comedy Bro' Town and hit shows such as CSI: Miami are putting it on a course to exceed profit forecasts set out for its public float in July.

The owner of TV3 and C4 gave the upbeat assessment as it disclosed trading profits in the three months to November had risen more than a fifth from $20.9 million to $26.4 million.

Chief executive Brent Impey said: "Looking forward, our projections for the year remain solid, and provided the economy remains strong we are tracking to exceed our projected total trading profit of $61.1 million."

In the year to August, the company made a trading profit of $58.7 million.

Impey said that the first quarter was traditionally a key driver for the business, so performance was unlikely to be matched throughout the rest of the financial year. CanWest shares rose 4c to a fresh high of $1.95 on the news.

Sales over the quarter rose from $63.8 million to $70.2 million.

Chairman Tom Strike said: "This is a very pleasing trend in the right direction, and is a reflection of a strong economy and our television and radio businesses achieving excellent continued efficiencies."

The standout performer was the television arm, where trading profits rose more than two-fifths from $12.2 million to $17.5 million.

"A $5 million [trading profit] improvement in a single quarter, off an already strengthened economy, is an excellent result and is a reflection of a consistent audience share for TV3 and the continued improved financial performance of C4," Impey said.

He said in the TV3 target audience of people aged 18 years to 49 years, the three main free-to-air channels in New Zealand were running close, each taking a consistent audience share in the mid-20 per cent.

"The trend looks even more positive for TV3, with our own share holding very stable and the two main competing channels trending downward."

He said shows such as Bro' Town, CSI: Miami, Monday night movies and the final season of Sex and the City had been ratings highlights.

"The excellent performance of Bro' Town is a credit to the production team and is the most successful local entertainment show in TV3's 15-year history."

C4 continued to make progress with a modest $285,000 trading profit for the quarter - which compares well with a loss in the same quarter last year.

The radio division, RadioWorks, lifted its trading profits for the quarter from $8.7 million to $9.5 million.

Media working

* CanWest MediaWorks First quarter trading profits rise from $20.9 million to $26.4 million

* Part of the gains are credited to the success of shows such as the comedy Bro' Town and crime drama CSI: Miami

* Forecasts annual trading profits will exceed the forecast of $61 million set out in the prospectus for its July float.