Ratings, sales revive CanWest faith in TV3

By SIMON HENDERY

A strong quarterly result for broadcaster CanWest's New Zealand television operations has provided further evidence that the once-struggling TV3 has turned the financial corner.

Canada-based CanWest said yesterday that combined operating profit for TV3 and TV4 for the three months to November 30 was C$7.2 million ($8.6 million), up from C$700,000 for the same period the previous year.

Revenue from the New Zealand television businesses was also up strongly, from C$18.4 million to C$26.2 million.

The chief executive of CanWest in New Zealand, Brent Impey, said TV3 had capitalised on improved ratings and market share, and a market-wide increase in television revenue over the past 12 months.

TV3's ratings had been steadily improving over the past year, he said.

Two of the channel's top-rating shows are US dramas Special Victims Unit and CSI.

In November last year TV3 reported a full-year operating profit of $3.2 million, compared with an $8.5 million loss the previous year.

But TV4 remained a problem - its full-year operating loss last year was $6.3 million.

Yesterday's first-quarter results show CanWest's New Zealand radio businesses, which include the More FM, Edge, Solid Gold, Rock and Radio Pacific networks, also performed strongly over the three months.

Radio operating profit was up 25 per cent to C$5.4 million from revenue of C$17.8 million (up 17 per cent).

Impey said the local radio advertising market had continued to grow, although CanWest's market share had been fairly stable over the quarter.

The New Zealand contribution to CanWest's result had been boosted by the strengthening New Zealand dollar.

Internationally, CanWest reported total operating profit of C$214 million for the quarter, up from C$200 million a year earlier.

Total quarterly revenue from its media businesses in Canada, New Zealand, Australia, Ireland and the UK was C$740 million, up from C$728 million.

Last year CanWest called for expressions of interest in its New Zealand operations as it looked for ways to cut group debt.

But chief executive Leonard Asper said in November the company had pulled back its efforts to sell the New Zealand business.

Asper said yesterday that CanWest was still looking at selling assets in order to pay down debt, but would not sell them below "their full and fair value just to gain some short-term favour".