Improved ratings lead CanWest's profits up

CanWest MediaWorks' improved television ratings have contributed to the broadcaster today reporting an annual net profit of $13.1 million -- up 89 per cent on prospectus forecast.

The company, which operated television and radio networks, declared a fully imputed final dividend of 2.3c per share, bringing its total annual dividend to 6.3cps.

Group earnings before interest, tax, depreciation and amortisation (ebitda) was $67.8 million, up 11 per cent on over pro forma ebitda the previous year.

RadioWorks ebitda was up 4 per cent to $33.8 million, and TV Works ebitda was up 26 per cent to $36.6 million.

Comparisons with the previous year are pro forma, based on the combined results of RadioWorks and TVWorks which merged at the end of July last year to form CanWest MediaWorks.

Chief executive Brent Impey said the company's music channel C4 was now making a positive ebitda contribution. TV3's ratings have continued to improved as its nightly 6pm news and Campbell Live current affairs show have pulled in viewers.

Mr Impey said 3 News lifted its share of its target audience by 12 per cent in the fourth quarter, compared with the same period the previous year. He said it was now the most watched television news programme in the country among 18 to 49-year-olds in the five main urban centres.

He said other local programming, such as the cult comedy cartoon bro'Town and the drama Outrageous Fortune had also attracted strong audience numbers.

"In the last week of the 2005 financial year TV3 was the number one channel in the country for the key target audiences of all 18 to 49-year-olds, 25 to 54-year-olds and household shoppers with children," Mr Impey said.

The company's radio arm, RadioWorks, launched a new news and talkback network, called Radio Live, during the year.

"Radio Live is a key development strategy for the company, however we are looking towards long-term growth for this new brand, rather than only short term gains," he said.

Looking ahead, Mr Impey said the improved ratings at TV3 and C4 should offset any softening in the advertising market in the first quarter of the new financial year.

But the company's first quarter ebitda could be lower than the previous first quarter, as TV3 has decided to increase its programming spend for the period.

Shares in the company last traded Friday at $1.98, having ranged between $1.53 and $2.44 since it listed on the stock exchange in July last year.

- NZPA