TV3 and TV4 produce a $9m loss for CanWest

By SIMON HENDERY

TV3 and TV4 notched up an operating loss of more than $9 million in the 9 months to May - a result the channels' owners blame on soft advertising and the weak kiwi dollar.

The poor performance of its New Zealand television operations was a black spot on a positive third-quarter result for Canada-based CanWest Global Communications.

The company, Canada's largest publisher of daily newspapers, with media interests in New Zealand, Australia and Ireland, posted a three-month profit of $C32.2 million ($51 million) - down from $C120.4 million in the same quarter a year ago but better than analysts expected.

CanWest said its New Zealand television revenue for the nine months was down 9.8 per cent to $NZ67.9 million.

It said New Zealand earnings before interest, tax, depreciation and amortisation, excluding foreign-exchange fluctuations, were a loss of $9.1 million compared to a profit of $4.6 million for the same period last year.

The company's New Zealand chief executive, Brent Impey, said the business had been hit by soft advertising conditions "which are occurring in virtually all international markets" and the low value of the New Zealand dollar.

Competitor TVNZ is also a victim of advertising malaise last month it said advertising revenue was down 5 per cent on the same time last year, a result that would cut $11 million from its balance sheet.

Meanwhile, revenue for the nine months from CanWest's local radio business - including the More FM, Rock, Edge, Solid Gold and Pacific networks - was up 8.8 per cent to $NZ67.8 million.

The company said radio earnings before interest, tax, depreciation and amortisation were up 7 per cent to $16.8 million.