TV3 back in good books with CanWest

By SIMON HENDERY and AGENCIES

Canadian media giant CanWest appears to have gone cold on the idea of selling its New Zealand television and radio assets.

On the same day it announced TV3 had achieved a long-awaited full-year profit, debt-laden CanWest said it had "pulled back" its attempt to sell its New Zealand businesses.

CanWest Global Communications owns TV3, TV4, and several radio networks including More FM, the Edge, Solid Gold, the Rock and Radio Pacific.

CanWest New Zealand said yesterday that TV3's earnings before interest, tax depreciation and amortisation for the year to August 31 were $3.2 million - a turnaround from the previous year's $8.5 million loss. TV3 revenue rose from $86 million last year to $94 million.

TV4 remains the problem child, running up a $6.3 million loss.

The company's radio business earnings rose from $22.4 million to $23.7 million. Revenue was up from $86.9 million to $88.1 million.

The chief executive of CanWest New Zealand, Brent Impey, said TV3 had benefited from improved ratings, a new sales structure, increased operating efficiencies and improved foreign exchange rates.

Impey said the company's "next mission" was to turn around TV4, although it was premature to say what the strategy might be.

"We're still focusing on TV3, but we are now starting to look at options for TV4," he said.

Impey said the company's radio business was benefiting from a strong New Zealand economy and robust market.

Earlier this year CanWest Global - lumbered with debt after a C$3.5 billion ($4.5 billion) Canadian newspaper acquisition in 2000 - called for expressions of interest in its New Zealand operations.

But chief executive Leonard Asper said yesterday bidders had been unable to arrange financing.

The same parties later "were able to cobble together some financing", but CanWest has "pulled back from the ongoing marketing" of the businesses, he said.

However, CanWest's corporate affairs vice-president Geoffrey Elliot said yesterday: "At this point there is no change in what we have said before and that is we have included the New Zealand broadcasting in assets for which we are seeking buyers.

"There is no announcement to be made with respect to specific potential buyers."

CanWest Global yesterday reported a C$104 million loss for the three months to the end of August and a C$13 million full-year profit, down from C$117 million last year.