Top shows help TV3 hold line

CSI is one of the shows that has helped TV3 gain more viewers. The company says record audience shares have been a key factor in TV3's success.

Top-rating dramas such as House and CSI have boosted TV3's share of younger viewers and helped save parent company CanWest MediaWorks from the worst effects of a downturn in the advertising market.

The owner of TV3, C4 and RadioWorks yesterday reported revenue of $60.7 million for the three months to May 31 - a 0.5 per cent increase on the same period last year.

The company's trading profit was $13.4 million, up 1 per cent from last year.

The trading profit for TVWorks - the company's TV business - rose 8 per cent to $7.5 million, while RadioWorks' trading profit fell from $7.1 million to $6.9 million.

TVWorks increased its share of its prime-time demographic of viewers aged 18 to 49 by 6 per cent, compared with the third quarter in 2005, AGB Nielsen Media Research figures show.

However investors were unimpressed and shares in MediaWorks fell 10c to $1.43.

CanWest MediaWorks was largely on track to meet its full year forecasts, said Forsyth Barr analyst Rob Mercer.

But it was "hard to see its profitability over the next year being anything but subdued", he said.

"We were probably expecting the performance from TVWorks to be better than what came through."

RadioWorks performed in line with expectations, he said.

CanWest MediaWorks' chief executive Brent Impey said the company had felt the impact of the flattening advertising market but the network's TV offerings were rating well.

"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.

Impey said strong levels of advertising growth seen during the last three years could not be sustained and this country was following a trend that occurred in Australia last year.

"We are finding that double digit growth of the past couple of years is now flat," he said.

"We think that, similarly to Australia for the next period - up to 12 months - the market will be relatively flat."

The next year (due to begin on September 1) would be competitive and challenging.

"However, we believe the business is strongly positioned to do well in the medium term."

The company completed changes to its radio offerings, which saw all its stations become available in Auckland.

Impey said the digital television announcement this month was positive but there were transmission and spectrum issues.