Radio gains offset TV3 loss

By SIMON LOUISSON of NZPA

TV3 and TV4 kept bleeding for CanWest Global Communications in the August year but the Canadian owner's New Zealand radio stations performed strongly.

CanWest's New Zealand chief executive, Brent Impey, says he has staunched the bleeding at TV3.

TV revenue fell 9.5 per cent to $91.8 million in the year and the operating loss before foreign exchange fluctuations was $12.3 million compared with $15.9 million last year, which included a $20 million one-time writedown of old programme stock.

Rick Friesen, managing director of television operations, said he was optimistic that the bottom had been reached in the television market and financial results would improve next year.



CanWest's radio assets, the MoreFM, The Rock, The Edge, Solid Gold, Channel Z and Radio Pacific brands, made steady gains in profit.

Revenues rose 6 per cent to $86.9 million and operating profit rose 6.8 per cent to $22.1 million.

Overall, CanWest's New Zealand businesses posted an operating profit of $9.8 million before interest, tax, depreciation and amortisation.

Mr Impey said the television advertising market had been difficult, but radio had a positive year.

As well as the weak New Zealand dollar, he blamed an aggressive write-down of old programming stock for the poor TV result.

The company had invested heavily in local programming and marketing, and that was paying off.

TV3 had hit its financial targets in the quarter to October 31 and had achieved significant market share gains across all genres, including news and local programming.

"We are very confident it will reap benefits. TV3 is down the track on a turn-around strategy."

Mr Impey said thoughts entertained this year of backing TV3 into Australia's Channel Ten, also owned by CanWest, had been shelved.

Market share for CanWest's 92 radio stations had reversed a 39-43 per cent market share against The Radio Network from two years ago, Mr Impey said. CanWest fully took over the formerly listed RadioWorks during the year.

Mr Impey said the radio advertising market, which is primarily retail-driven, was in better shape than the brand-focused television market.

CanWest, Canada's biggest media company, said yesterday its fourth-quarter loss widened to $C37 million ($56 million) from $C16.2 million the previous year due to financing costs.

But revenue in the period ended August 31 more than doubled to $C576.1 million from $C269.9 million, CanWest said.