CanWest Global Communications Corp. Reports Fourth Quarter 2007 Results



    Significant increases in Revenue, EBITDA and Net Earnings

    WINNIPEG, Nov. 2 /CNW/ - CanWest Global Communications Corp. today
reported financial results for its fourth quarter and for its fiscal year
ended August 31, 2007. For the three months ended August 31, 2007, CanWest
reported the following:

    
    -  Consolidated revenues were $679 million, an increase of 11% from
       $610 million for the same quarter one year ago.

    -  Consolidated EBITDA(1) was $77 million, compared to consolidated
       EBITDA of $65 million for the same period in 2006, an 18% increase
       from the previous year.

    -  Gains on sale of the Company's New Zealand and Canadian Radio
       operations amounted to $252 million. The Company recorded a gain of
       $164 million last year on the sale of TV3 Ireland.

    -  Net earnings were $197 million or $1.11 per share, compared to
       $155 million or $0.87 per share for the same period.
    

    Commenting on the results, Leonard Asper, CanWest's President and Chief
Executive Officer, said, "All our operations showed marked improvement over
the previous year, with Canadian television maintaining its momentum vis-à-vis
its audience share versus its competitors in Canada. EBITDA improvements
during the quarter show that cost control measures undertaken at both Canadian
broadcasting and publishing are paying off and being maintained." Overall,
EBTIDA was up 18% over last year, a result which included approximately
$10 million of non-recurring costs arising on the privatization of the Income
Fund and the strategic review in the South Pacific. Excluding these costs,
EBITDA would have totalled $87 million, an increase of 33% from the same
quarter of the previous year.
    During the quarter, the acquisition of the broadcasting assets of
Alliance Atlantis Communications Inc. was completed and now awaits a hearing
by the Canadian Radio-television and Telecommunications Commission (CRTC) to
determine whether the application for the change of control of Alliance
Atlantis broadcasting assets will be approved. The transaction closed on
August 15, 2007. Other notable events during the quarter were the sale of
CanWest's share of CanWest MediaWorks New Zealand and the purchase of the
outstanding shares of CanWest MediaWorks Income Fund.

    For the twelve months ended August 31, 2007 CanWest reported the
following:

    
    -  Consolidated revenues were $2,865 million, an increase of 7% from
       $2,686 million for fiscal 2006.

    -  Consolidated EBITDA(1) was $487 million, a 6% increase compared to
       consolidated EBITDA of $459 million for fiscal 2006.

    -  Net earnings for the year were $279 million, or $1.57 per share
       compared to net earnings of $179 million, or $1.01 per share, for
       fiscal 2006.
    

    Segmented Results for Fiscal 2007

    Revenues for the Company's publishing operations for the year were $1,285
 million, 2% higher than revenues of $1,262 million for the same period in
fiscal 2006. Publishing EBITDA of $269 million for the year was up 8% from
$248 million in fiscal 2006.
    Canadian television operations experienced a 4% increase in revenues for
fiscal 2007 to $683 million from $658 million in fiscal 2006. EBITDA of
$61 million for the year increased almost 100% from the $31 million for the
prior year due to aggressive cost control measures and revenue gains as a
result of ratings momentum. Global maintained several programs in the top ten
including Survivor, House, Prison Break and last season's bona fide new hit
Heroes. Global's ET Canada solidified its hold on the number one position
among Canadian entertainment magazine programs and Global National maintained
its position as the most watched national news program in 2007.
    Network TEN's $205 million contribution to CanWest's consolidated EBITDA
represented an increase of 4% from $197 million for fiscal 2006, primarily due
to a firming of the television advertising market in Australia, particularly
in the back half of the year. Network TEN continued to post strong ratings
performance, again leading in its target 16-39 young adult demographic while
also growing its audience among the wider 18-49 demographic.
    Eye Corp, TEN's wholly-owned out-of-home advertising business experienced
revenue increases for the year of 34% to $146 million from $109 million the
previous year, while EBITDA declined to $0.4 million from $20 million the
previous year. This decline reflects non-capitalized start up costs. In the
past year Eye Corp has invested significantly in international expansion and
completed a major move into the US market through acquisitions that have given
Eye Shop exposure in 249 shopping malls throughout the US. The decline in
EBITDA, in large part reflects non-capitalized start-up costs related to this
expansion.
    In mid-August, CanWest completed the acquisition of Alliance Atlantis
specialty television operations. In the interim period from closing to the
CRTC decision CanWest will account for the regulated assets on an equity
basis.
    While not included in CanWest results reported today, unaudited revenue
for the Alliance Atlantis specialty television operations now owned by CW
Media Holdings was $322 million for the twelve months ended August 31, 2007,
an increase of 9%, compared to the twelve month period ended August 31, 2006.
Unaudited segmented operating profit for the twelve months ended August 31,
2007, before corporate cost allocations and non-recurring items totaled
$101 million, an increase of 7% from the prior year.

    
    Highlights of the fourth quarter and subsequent

    -  In August 2007 the Company and its partner Goldman Sachs Capital
       Partners completed the acquisition of the Alliance Atlantis specialty
       television operations ("CW Media"). The specialty television assets
       are being held in trust pending a hearing at the CRTC and a review of
       CanWest's application for a change of control of the broadcast
       licenses.

    -  In June, CanWest closed the sale of its New Zealand operations for
       proceeds of $310 million and realized a net gain of $246 million.

    -  In July, CanWest completed the acquisition of CanWest MediaWorks
       Income Fund's interest in the CanWest MediaWorks Limited Partnership.
       The units were purchased at $9.00 a unit or an aggregate purchase
       price of $495 million. In connection with the purchase of the
       outstanding units of the Income Fund, CanWest MediaWorks LP issued
       $1.4 billion in debt, proceeds of which were used to refinance
       $825 million in existing debt, $495 million to purchase the units and
       the payment of a $105 million distribution to CanWest.

    -  In August CanWest received final approval from Australian authorities
       and converted its holdings in The TEN Group Pty Limited into
       approximately a 57% equity position in TEN Network Holdings Ltd., the
       public parent of Network TEN and Eye Corp.

    -  In July following CRTC approval, CanWest completed the sale of two
       Canadian radio stations, 99.1 Cool FM in Winnipeg and 91.5 The Beat FM
       located in Kitchener Ontario to Corus Entertainment. CanWest received
       proceeds of $15 million and realized a gain of $5 million on the
       transaction.

    -  The Company received the following in distributions from the CanWest
       MediaWorks LP and Network TEN: CanWest MediaWorks LP fourth quarter -
       $127 million, fiscal 2007 $237 million (including a $105 million
       special distribution); Network TEN, $19 million for the fourth
       quarter, and $62 million for the year.

    -  During the quarter, CanWest launched a new directories business with a
       unique business model. Go!Local community pages, first launched in
       Ottawa, combines online and print directories in such a way that
       advertisers only pay for results. Go!Local community pages are also
       planned for Saskatoon and Regina in fiscal 2008.

    -  In early September, the CanWest owned CH stations across Canada were
       rebranded as E! channels, Canada's home for everything entertainment,
       and followed up the launch with strong ratings performance.

    -  The October 2007 CanWest Raise A Reader campaign completed its most
       successful campaign yet, raising $2.7 million to support literacy
       programs in cities across Canada, an increase of 13% over 2006 thanks
       to the hard work and generosity of 4,000 volunteers and national and
       local sponsors. CanWest Raise-a-Reader has raised $10 million since
       the first national campaign in 2002.

    -  CanWest announced a restructuring of its Global and E! stations to
       take advantage of digital technology and prepare both networks for a
       transformation to high definition television by consolidating into
       four state-of-art broadcast centres in Vancouver, Calgary, Edmonton
       and Toronto but maintaining national and local news gathering capacity
       in all markets in which the company operates in Canada.
    

    Outlook:

    As we move into fiscal 2008 we anticipate a continued improvement in
overall operating results. Our operations in Australia have been performing
well and we anticipate continued growth in the broadcasting assets as the
television advertising market stabilizes in that market. The positive earnings
trend in the publishing group should continue with a renewed vigor in using
our premier brand position in most Canadian markets to enhance our online
properties and capture the continued migration of classified advertising
online. To that end we are optimistic the business model of our Go!Local
community directories will address some of that erosion and open a new retail
level advertising sector for our publishing group. At Canadian television, an
aggressive approach to improving and refreshing the primetime schedule on both
Global Television and the newly launched E! channels appears to be paying off
as the new schedules on both networks have captured a larger share of audience
and a larger number of the top ten programs across the country. We are
currently in a dead heat with our major conventional competitor in Canada with
respect to audience share. As we look ahead for the year, the successful
acquisition and integration of the Alliance Atlantis specialty broadcasting
remains a priority.

    Forward Looking Statements:

    This news release contains certain comments or forward-looking statements
about the objectives, strategies, financial conditions, results of operations
and businesses of CanWest. Statements that are not historical facts are
forward-looking and are subject to important risks, uncertainties and
assumptions. These statements are based on our current expectations about our
business and the markets in which we operate, and upon various estimates and
assumptions. The results or events predicted in these forward-looking
statements may differ materially from actual results or events if known or
unknown risks, trends or uncertainties affect our business, or if our
estimates or assumptions turn out to be inaccurate. As a result, there is no
assurance that the circumstances described in any forward-looking statement
will materialize. Significant and reasonably foreseeable factors that could
cause our results to differ materially from our current expectations are
discussed in the section entitled "Risk Factors" contained in our Annual
Information Form for the year ended August 31, 2006 dated November 28, 2006
filed by CanWest Global Communications Corp. with the Canadian securities
commissions (available on SEDAR at www.sedar.com), as updated in our most
recent Management's Discussion and Analysis for the three months and nine
months ended May 31, 2007, dated July 12, 2007. We disclaim any intention or
obligation to update any forward-looking statement even if new information
becomes available, as a result of future events or for any other reason.

    The Company's financial statements are available on the Company's
website: www.canwestglobal.com. Financial statements for CanWest Newspaper
Limited Partnership can be found at www.canwestglobal.com. Financial
statements for Ten Network Holdings Limited can be found at
www.tencorporate.com.au.

    The Company will hold its regular quarterly conference call with analysts
on November 2, 2007 at 4:00 p.m. Eastern Time. The call-in numbers are
416-644-3427 or 800-587-1893. Replays are also available for five days
following the call at 303-590-3065 or 416-640-1917 (using the pass-code
21251940 followed by the pound sign).

    CanWest Global Communications Corp. (www.canwestglobal.com), (TSX: CGS
and CGS.A,) an international media company, is Canada's largest media company.
In addition to owning the Global Television Network, CanWest is Canada's
largest publisher of English language daily newspapers and owns, operates
and/or holds substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio stations and
networks in Canada, New Zealand, Australia, Turkey, Indonesia, Singapore, the
United Kingdom and the United States.



    
    CANWEST GLOBAL COMMUNICATIONS CORP.
    BUSINESS SEGMENT INFORMATION
    (unaudited)
    (in thousands of Canadian dollars)


                                 For the three months   For the twelve months
                                 --------------------   ---------------------
                                    ended August 31,       ended August 31,
                                    ----------------       ----------------

                                     2007       2006       2007       2006

    REVENUE

    Publishing                      305,258    294,040  1,285,298  1,261,753
                                  ---------- ---------- ---------- ----------

    Television
      Canada                        127,028    129,985    683,035    657,876
      Australia                     205,366    156,580    738,475    656,306
                                  ---------- ---------- ---------- ----------
                                    332,394    286,565  1,421,510  1,314,182
    Radio
      Turkey                          3,927      3,480     14,920      5,726
      United Kingdom                    285          -      1,124          -
                                  ---------- ---------- ---------- ----------
                                      4,212      3,480     16,044      5,726

    Outdoor - Australia              37,178     27,693    146,226    109,051
    Intersegment revenues              (393)    (1,370)    (3,796)    (4,899)
                                  ---------- ---------- ---------- ----------

    CONSOLIDATED REVENUE            678,649    610,408  2,865,282  2,685,813
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    SEGMENT OPERATING PROFIT

    Publications and Interactive     57,324     52,877    269,096    248,429
                                  ---------- ---------- ---------- ----------

    Television
      Canada                        (10,163)   (22,049)    61,266     31,487
      Australia                      52,493     38,662    205,251    197,229
                                  ---------- ---------- ---------- ----------
                                     42,330     16,613    266,517    228,716
    Radio
      Turkey                          1,974      1,234      5,832      2,610
      United Kingdom                 (2,038)         -     (5,026)         -
                                  ---------- ---------- ---------- ----------
                                        (64)     1,234        806      2,610
    Outdoor - Australia                (839)     3,935        416     19,593
                                  ---------- ---------- ---------- ----------
                                     98,751     74,659    536,835    499,348
    Corporate and other              (8,346)    (9,177)   (32,958)   (33,205)
    Corporate development
     expenses                       (13,462)      (351)   (16,910)    (6,723)
                                  ---------- ---------- ---------- ----------

    OPERATING PROFIT (EBITDA)(1)     76,943     65,131    486,967    459,420
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    (1) EBITDA is defined as earnings before interest, income taxes,
        amortization of intangibles, amortization of property, plant and
        equipment, other amortization, interest rate and foreign currency
        swap gains (losses), accretion of long term liabilities, foreign
        exchange gains (losses), investment gains and write-downs, loss on
        debt extinguishment, minority interest, interest in earnings of
        equity accounted affiliates, realized currency translation
        adjustments, gain on sale of discontinued operations, and earnings
        from discontinued operations. This supplementary earnings measure
        does not have a standardized meaning prescribed by Canadian generally
        accepted accounting principles and may not be comparable to similar
        measures presented by other companies nor should it be viewed as an
        alternative to net earnings. The reconciliation of EBITDA to net
        earnings is evident on the face of the following consolidated
        statements of earnings.



                     CANWEST GLOBAL COMMUNICATIONS CORP.
                 CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
                                 (UNAUDITED)
        (In thousands of Canadian dollars except as otherwise noted)


                                      For the three        For the twelve
                                      -------------        --------------
                                       months ended         months ended
                                       ------------         ------------

                                  August 31, August 31, August 31, August 31,
                                     2007       2006       2007       2006


    Revenue                         678,649    610,408  2,865,282  2,685,813
    Operating expenses              392,844    360,571  1,565,035  1,464,116
    Selling, general and
     administrative expenses        208,862    184,706    813,280    762,277
                                  ---------- ---------- ---------- ----------
                                     76,943     65,131    486,967    459,420
    Amortization of intangibles       2,361        947      6,395     10,947
    Amortization of property,
     plant and equipment             24,099     19,866     93,411     86,782
    Other amortization                  274      1,275      1,597      7,383
                                  ---------- ---------- ---------- ----------
    Operating income                 50,209     43,043    385,564    354,308
    Interest expense                (59,178)   (46,844)  (190,227)  (183,879)
    Interest income                   2,783        873      5,977      2,384
    Amortization of deferred
     financing costs                 (7,413)    (1,540)   (12,794)    (6,494)
    Interest rate and foreign
     currency swap gains (losses)    16,886     (6,194)    15,955   (138,639)
    Accretion of long
     term liabilities                (3,603)         -     (3,603)
    Foreign exchange gains (losses)   5,121      4,526      9,690     (7,941)
    Investment gains and
     write-downs                     (1,207)      (769)     8,448    102,490
    Loss on debt extinguishment           -       (521)         -   (117,401)
                                  ---------- ---------- ---------- ----------
                                      3,598     (7,426)   219,010      4,828
    Provision for (recovery of)
     income taxes                    25,469    (19,262)    94,013    (86,648)
                                  ---------- ---------- ---------- ----------
    Earnings before the following   (21,871)    11,836    124,997     91,476
    Minority interests              (26,390)   (21,566)  (105,490)   (95,998)
    Interest in earnings of
     equity accounted affiliates        986      1,219      2,422      2,612
    Realized currency translation
     adjustments                     (5,916)    (4,086)    (5,351)    (6,883)
                                  ---------- ---------- ---------- ----------
    Net earnings (loss) from
     continuing operations          (53,191)   (12,597)    16,578     (8,793)
    Gain on sale of discontinued
     operations                     251,998    163,547    251,998    163,547
    Earnings (loss) from
     discontinued operations         (1,351)     3,915     10,751     23,918
                                  ---------- ---------- ---------- ----------
    Net earnings for the period     197,456    154,865    279,327    178,672
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Earnings per share from
     continuing operations:
      Basic                          ($0.30)    ($0.07)     $0.09     ($0.05)
      Diluted                        ($0.30)    ($0.07)     $0.09     ($0.05)

    Earnings per share:
      Basic                           $1.11      $0.87      $1.57      $1.01
      Diluted                         $1.11      $0.87      $1.57      $1.01
    




For further information:

For further information: Dervla Kelly, Director, Communications, Tel:
(416) 442-3807, dekelly@canwest.com; John Maguire, Chief Financial Officer,
Tel: (204) 956-2025, jmaguire@canwest.com

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