CanWest reports slight rise in revenue

CanWest MediaWorks (NZ) today reported a 0.5 per cent rise in revenues for the third quarter to May compared to the same period in 2005.

The owner of the TV3 and C4 television networks, and several national radio brands including The Edge and Radio Live, said revenue for the quarter was $60.7 million, compared with $60.4 million for the same period last year.

Group earnings before interest, income tax, depreciation and amortisation (ebitda) were $13.4 million, an increase of 1 per cent from the corresponding period in 2005, CanWest said.

Subsidiary CanWest TVWorks had an 8 per cent lift in its ebitda for the quarter to $7.5 million, up from $6.9 million.

For subsidiary CanWest RadioWorks, revenues were up slightly to $26.1 million from $25.8 million. Ebitda was down slightly to $6.9 million from $7.1 million.

CanWest MediaWorks CEO Brent Impey said the company, along with other broadcasters, was experiencing a flattening of revenue growth levels across both television and radio, although the advertising market was holding.

"This is not surprising because after three years of very strong growth, it was inevitable those growth levels could not be sustained," Mr Impey said.

The company -- a majority-owned subsidiary of CanWest Global Communications Corp based in Canada -- was better positioned to deal with a softening economy than it would have been several years ago.

"Record audience shares on TV3 for key shows such as 3 News, House, Boston Legal, America's Next Top Model and CSI have been key factors in TV3's sustained success," he said.

The company was hoping to get close to matching the 2005 group ebitda, but that target could be a challenge in the rapidly tightening economic environment, Mr Impey said.

"The next fiscal, due to commence on 1 September 2006, will be a very competitive and challenging year. However, we believe the business is strongly positioned to do well in the medium term."

- NZPA