Weaker kiwi slices TV3's profit

WELLINGTON - Operating profit at TV3 was trimmed in the first quarter of this financial year as the lower dollar pushed up the cost of foreign programmes.

The television company's profit dipped 8 per cent to $7.3 million in the November quarter, compared with $7.9 million in the first quarter last year.

Revenue was 8 per cent ahead to $28.1 million, from $26.0 million, reflecting an improved television advertising market and audience share.

"This growth, in part, is due to the agreement with Sky Television to broadcast New Zealand's major sporting events," said Leonard Asper, the chief of TV3's Canadian parent, CanWest Global Communications.

Mr Asper, CanWest's president and chief executive officer, said: "We are satisfied with the [group's] results from the first quarter, especially with the improvement in New Zealand with a significant sports broadcasting agreement and some key management changes."

Excluding the foreign exchange items, TV3's operating profit improved by $1.5 million to $7.2 million.

More FM's broadcast operating profit was flat at $1.9 million, reflecting the opening of two new stations, More FM Waikato and Channel Z Christchurch, in the fourth quarter of 1999. These brought the group's total number of radio stations in New Zealand to nine.

- NZPA