TV3 parent enjoying bumper profits

John Campbell

Profits at CanWest MediaWorks are running ahead of its forecasts, lifted by the successful launch of Campbell Live on its TV3 network and of its new Radio Live news station.

Despite the start up costs of the new programmes, trading profits for third quarter to May rose from $11.9 million to $13.4 million. Sales rose from $54 million to $60.4 million.

Chairman Tom Strike said: "This is an excellent third-quarter result ... and we remain confident the business is on track to exceed previously stated [trading profit] objectives for the financial year."

Ahead of its float in July last year the company said it would make a trading profit of $61 million for the year to August, up from $60 million the year before.

CanWest shares yesterday rose 5c to $1.90.

Strike said Campbell Live, launched in March against TVNZ's Close Up and Prime's Holmes, was attracting 19 per cent of the key 18- to 49-year-old audience. This compares with forecasts of 15 per cent and 16 per cent.

The new 6pm news line-up of Hilary Barry and Mike McRoberts, who replaced Carol Hirschfeld and John Campbell, was also performing ahead of forecasts.

Meanwhile, Radio Live, the network launched in April in a direct attack on Newstalk ZB, is profitable already.

CanWest Mediaworks chief executive Brent Impey said: "It is unprecedented. We had budgeted for [Radio Live] to break even for the balance of the financial year, but it is already in profit."

Trading profits at TV Works, which includes TV3 and the C4 music channel, rose from $5.2 million to $6.9 million, and trading profits at RadioWorks rose from $6.7 million to $7.1 million.

Impey, however, warned investors against too much enthusiasm. He expects the company to begin to feel the effects of the slowdown over the next six months.

In the last quarter of the calender year, revenue growth will be around 4 per cent at the bottom end and 6 per cent at the upper end.

"The market is slowing down from some of the growth it has shown," Impey said.

He was unwilling to forecast beyond that period.

- Additional reporting: NZPA