CanWest MediaWorks Income Fund Reports Second Quarter 2007 Results



    TORONTO, April 12 /CNW/ - CanWest MediaWorks Income Fund announced today
financial results for the second quarter of its 2007 fiscal year, which ended
February 28, 2007.
    Revenue for the second quarter was $278.0 million, down slightly compared
to $279.5 million in the prior year. Interactive revenue increased 5% as
compared to the prior year. Online classified revenue, which is reported
within the Newspaper segment, increased 30% as compared to the prior year.
Newspaper revenues were essentially flat with the prior year as declines in
print classifieds revenue were largely offset by increases in insert, retail
and circulation revenue.
    EBITDA for the Limited Partnership was $56.2 million, representing an
increase of 7% over $52.3 million reported in the same period in 2006. Growth
in EBITDA is attributed to the continued positive impact of cost containment
initiatives undertaken during fiscal 2006. Expenses decreased 2% as reduced
severance payments and lower operating losses resulting from the closure of
the print edition of Dose in May 2006 were offset by inflationary increases in
payroll and higher distribution costs.
    "Results for the quarter were reasonable within the current advertising
market. Revenue growth in our online properties combined with the positive
impact of expense reduction initiatives has resulted in EBITDA growth for the
second quarter," said Peter Viner, President and CEO of CanWest MediaWorks
Income Fund.
    Net earnings for the quarter were $39.8 million, an increase of 8% as
compared to the prior year. The increase in net earnings primarily reflects
the improvement in gross margins as a result of cost containment initiatives
and reduced severance expenses.
    Distributable cash for the quarter was $43.5 million or $0.20 per unit.
Cash distributions for the quarter were $0.23 per unit. Due to the seasonal
nature of newspaper advertising revenue, we expect distributable cash in the
first and third quarters to exceed actual distributions and to be more than
sufficient to offset anticipated shortfalls in the second and fourth quarters.

    Six Months Ended February 28, 2007

    For the six month period ending February 28, 2007, revenues totaled
$594.4 million, an increase of 0.2% over the same period last year. The
comparative period presented includes the combined consolidated financial
results for the six months ended February 28, 2006, the first half of the
fiscal 2006 year including the period from September 1, 2005 to October 12,
2005 which predated formation of the Fund.
    Newspaper advertising revenue increased slightly over the same period in
the prior year with growth focused primarily in national advertising,
advertising inserts and online classified advertising offset by decreased
print classified advertising. Interactive revenues have increased 7% over the
prior year due to increased online advertising on the canada.com network.
    EBITDA for the first six months of fiscal 2007 was $145.7 million, an
increase of 8% compared to $134.6 million for the same period last year.
EBITDA growth is attributed to modest revenue growth combined with significant
expense reductions, down 2% as compared to the prior year as a result of cost
reductions initiatives undertaken in fiscal 2006 and lower severance expenses.
    "Our focus for the remainder of fiscal 2007 is to maintain positive
momentum in year-over-year EBITDA growth. We expect challenges in the
advertising market to continue and will focus on obtaining revenue growth from
the expansion of national supplements and themed special sections," said Peter
Viner, President and CEO of CanWest MediaWorks Income Fund. Mr. Viner added
that he remains cautiously optimistic about the outlook for the remainder of
the fiscal year.
    Net earnings for the same period were $100.3 million compared to
$67.5 million for the same period last year. The increase in net earnings
primarily reflects reduced interest expense following to the change in
structure to a Limited Partnership in October 2005.
    Distributable cash for the first half of the year was $120.8 million, or
$0.57 per unit. This compares with $86.0 million, or $0.40 per unit, for the
period from October 13, 2005 to February 28, 2006. Distributions declared for
the first six months of F2007 were $0.46 per unit compared with $0.37 per unit
for the period from October 13, 2005 to February 28, 2006. On a trailing
12 month basis, distributions totaled 88% of distributable cash.

    Basis of Presentation
    ---------------------
    The Publications Group, formerly owned by CanWest MediaWorks Inc., was
acquired by CanWest MediaWorks Limited Partnership (the "Limited
Partnership"), in which, effective October 13, 2005, the Fund acquired an
approximate 26% interest.
    The financial statements released today include the presentation of
combined consolidated financial performance of the Publications Group for the
period from September 1, 2005 to October 12, 2005, the time pre-dating the
formation of the Limited Partnership, and the consolidated financial results
of the Limited Partnership for the period from October 13, 2005 to
February 28, 2006. The comparative period for the six months ended of fiscal
2005 covers the combined consolidated financial results of the Publications
Group.

    Caution Concerning Forward-Looking Statements
    ---------------------------------------------
    This news release contains certain comments or forward-looking statements
about the objectives, strategies, financial conditions, and 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 29, 2006
filed by CanWest Global Communications Corp. with the Canadian securities
commissions (available on SEDAR at www.sedar.com) and with the U.S. Securities
and Exchange Commission under Form 40-F (available on EDGAR at www.sec.gov).
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 will hold its regular quarterly conference call with analysts
on April 12, 2007 at 4:30 PM Eastern Standard Time. The call-in numbers are
416-644-3414 or 800-733-7560. Replays are also available for five days
following the call at 416-640-1917 or 877-289-8525 using the pass-code
21223686 followed by the number sign.

    About CanWest MediaWorks Income Fund
    ------------------------------------
    CanWest MediaWorks Income Fund (TSX: CWM.UN; www.cwmincomefund.com) is an
unincorporated, open-ended trust that holds an approximate 26% equity interest
in CanWest MediaWorks Limited Partnership, which is the largest publisher of
newspapers in Canada, as measured by paid circulation, readership and revenue.
    The assets within the Limited Partnership comprise ten major metropolitan
daily newspapers serving nine Canadian cities; Vancouver Sun, The Province
(Vancouver), Ottawa Citizen, The Gazette (Montreal), The Edmonton Journal,
Calgary Herald, The Windsor Star, Times-Colonist (Victoria), Leader Post
(Regina), Star Phoenix (Saskatoon), and a one-third interest in Metro Ottawa
and Metro Vancouver, free commuter dailies, together with 23 smaller community
daily, weekly and bi-weekly publications. The assets also include online
properties canada.com, dose.ca, working.com, driving.ca and related websites.
    CanWest MediaWorks Limited Partnership is 74% owned by CanWest Global
Communications Corp. (www.canwestglobal.com), an international media company
listed on the TSX (trading symbols: CGS and CGS.A) and NYSE (trading
symbol: CWG), and Canada's largest media company. CanWest is Canada's largest
publisher of daily newspapers, and owns, operates and/or holds substantial
interests in free-to-air and subscription-based television networks,
out-of-home advertising, web sites, and radio stations and networks in Canada,
New Zealand, Australia, Singapore, Turkey, the United States and the United
Kingdom.



    
    CANWEST MEDIAWORKS LIMITED PARTNERSHIP
    Consolidated Segmented Results
    (In thousands of Canadian dollars)

                                   For the
                             three months ended
                                 February 28,
                          -------------------------
                              2007         2006
    Revenue
    Newspapers                270,538      272,534
    Interactive                 8,201        7,808
    Intersegment elimination     (766)        (865)
                          -------------------------
                              277,973      279,477
    Segment Operating
     Expenses
    Newspapers                213,565      220,430
    Interactive                 7,793        6,234
    Intersegment elimination     (766)        (865)
                          -------------------------
                              220,592      225,799
    Segment Operating Profit
    Newspapers                 56,973       52,104
    Interactive                   408        1,574
                          -------------------------
                               57,381       53,678

    Corporate costs
     allocated(2)              (1,196)      (1,342)
                          -------------------------
    EBITDA(1)                  56,185       52,336
                          -------------------------
                          -------------------------



                                        For the six month period
                          ---------------------------------------------------
                                Sep 1,      Oct 13,       Sep 1,       Sep 1,
                              2006 to      2005 to      2005 to      2005 to
                               Feb 28,      Feb 28,      Oct 12,      Feb 28,
                                 2007         2006         2005         2006
                                                   Publications
                                                          Group
                                                           (for         (for
                                                    comparative  comparative
                                                       purposes     purposes
                                                           only)        only)
    Revenue
    Newspapers                579,833      443,787      135,835      579,622
    Interactive                16,114       11,855        3,275       15,130
    Intersegment
     elimination               (1,523)      (1,302)        (391)      (1,693)
                          ---------------------------------------------------
                              594,424      454,340      138,719      593,059
    Segment Operating
     Expenses
    Newspapers                433,946      340,285      104,007      444,292
    Interactive                13,938        9,628        2,950       12,578
    Intersegment elimination   (1,523)      (1,302)        (391)      (1,693)
                          ---------------------------------------------------
                              446,361      348,611      106,566      455,177
    Segment Operating Profit
    Newspapers                145,887      103,502       31,828      135,330
    Interactive                 2,176        2,227          325        2,552
                          ---------------------------------------------------
                              148,063      105,729       32,153      137,882

    Corporate costs
     allocated(2)              (2,392)      (2,071)      (1,201)      (3,272)
                          ---------------------------------------------------
    EBITDA(1)                 145,671      103,658       30,952      134,610
                          ---------------------------------------------------
                          ---------------------------------------------------
    (1)  EBITDA is not an earnings measure recognized by GAAP and does not
         have a standardized meaning prescribed by GAAP and may not be
         comparable to measures presented by other issuers. EBITDA is equal
         to net earnings adjusted to exclude amortization of property and
         equipment, other amortization, interest expense, amortization of
         deferred financing costs, foreign currency exchange gains and
         losses, gains and losses on disposal of property and equipment,
         other income and income taxes.
    (2)  For the periods prior to October 13, 2005 the corporate costs
         represent the general costs of CanWest allocated to the Publications
         Group. For periods subsequent to October 13, 2005 this is equal to
         the charges made by CanWest to the Limited Partnership for services
         provided under the Partnership Services Agreement.



    Consolidated Statements of Earnings
    (in thousands of Canadian dollars)

                                   For the
                             three months ended
                                 February 28,
                          -------------------------
                              2007         2006

    Revenue                   277,973      279,477
    Operating expenses
     excluding
     amortization             221,788      227,141
                          -------------------------
    EBITDA                     56,185       52,336
    Amortization of
     property and equipment    12,628       12,928
    Other amortization             40          173
                          -------------------------
    Operating income           43,517       39,235
    Interest expense          (10,081)     (10,732)
    Amortization of
     deferred financing
     costs                       (413)        (417)
    Other income                  762          986
    Gain on disposal of
     property and equipment       701            -
    Foreign currency
     exchange gains (losses)      285          (58)
                          -------------------------
    Earnings (loss)
     before taxes              34,771       29,014
    Provision for
     (recovery of) current
     income taxes                 (97)         (56)
    Provision for
     (recovery of) future
     income taxes              (4,900)      (7,649)
                          -------------------------
    Net earnings (loss)
     for the period            39,768       36,719
                          -------------------------
                          -------------------------



                                        For the six month period
                          ---------------------------------------------------
                                Sep 1,      Oct 13,       Sep 1,       Sep 1,
                              2006 to      2005 to      2005 to      2005 to
                               Feb 28,      Feb 28,      Oct 12,      Feb 26,
                                 2007         2006         2005         2005
                                                   Publications
                                                          Group
                                                           (for         (for
                                                    comparative  comparative
                                                       purposes     purposes
                                                           only)        only)

    Revenue                   594,424      454,340      138,719      593,059
    Operating expenses
     excluding
     amortization             448,753      350,682      107,767      458,449
                          ---------------------------------------------------
    EBITDA                    145,671      103,658       30,952      134,610
    Amortization of
     property and
     equipment                 25,122       19,585        5,422       25,007
    Other amortization             80          262           84          346
                          ---------------------------------------------------
    Operating income          120,469       83,811       25,446      109,257
    Interest expense          (20,878)     (16,604)     (33,858)     (50,462)
    Amortization of
     deferred financing
     costs                       (826)        (634)           -         (634)
    Other income                1,525        1,523            -        1,523
    Gain on disposal
     of property and
     equipment                    713            -          328          328
    Foreign currency
     exchange gains
     (losses)                      24          148         (217)         (69)
                          ---------------------------------------------------
    Earnings (loss)
     before taxes             101,027       68,244       (8,301)      59,943
    Provision for
     (recovery of) current
     income taxes                 (97)         118       (1,452)      (1,334)
    Provision for
     (recovery of) future
     income taxes                 812       (3,337)      (2,849)      (6,186)
                          ---------------------------------------------------
    Net earnings (loss)
     for the period           100,312       71,463       (4,000)      67,463
                          ---------------------------------------------------
                          ---------------------------------------------------



    Schedule of Distributable Cash(1)
    (in thousands of Canadian dollar)

                                                                   For the
                            For the      For the      For the    period from
                          three months three months  six months   October 13,
                             ended        ended        ended       2005 to
                          February 28, February 28, February 28, February 28,
                              2007         2006         2007         2006

    EBITDA(2)                  56,185       52,336      145,671      103,658
    Management believes
     that the following
     adjustments are
     required to determine
     distributable cash:
    Add:
    Dose and Metro losses
     to be funded through
     a reserve(3)                 599        3,204        1,296        5,043
    Capital recovery from
     CanWest(4)                   762          986        1,525        1,523
    Performance unit plan
     expenses(5)                  521          286          844          393
    Deduct:                                                   -
    Priority distribution
     for Fund expenses(6)        (110)        (110)        (550)        (154)
    Maintenance capital
     expenditures(7)           (4,362)      (6,968)      (7,109)      (7,831)
    Interest(8)               (10,076)     (10,732)     (20,868)     (16,604)
                          ---------------------------------------------------
    Distributable cash
     for the period(1)         43,519       39,002      120,809       86,028
                          ---------------------------------------------------
                          ---------------------------------------------------
    Distributable cash
     per unit                   $0.20        $0.18        $0.57        $0.40

    (1)  Distributable cash is not an earnings measure recognized by GAAP and
         does not have a standardized meaning prescribed by GAAP and may not
         be comparable to measures presented by other issuers. This measure
         is commonly used by investors, management and other stakeholders to
         evaluate the ongoing performance of the Fund. For a reconciliation
         with GAAP, please refer to the reconciliation contained in CanWest
         MediaWorks Income Fund Management Discussion and Analysis for the
         three and six months ended February 28, 2007.
    (2)  EBITDA is not an earnings measure recognized by GAAP and does not
         have standardized meanings prescribed by GAAP. EBITDA may not be
         comparable to similar measures presented by other issuers.
    (3)  Start-up losses incurred with respect to Dose and Metro have been
         added back in calculating Distributable Cash because losses with
         respect to those publications are intended to be funded through
         available amounts reserved under the Revolving Bank Loan.
         Specifically, $14 million of the Partnership's availability under
         the Revolving Bank Loan has been reserved to fund losses related to
         Dose and Metro.
    (4)  The Partnership has made charges to CanWest and its affiliates
         related to certain shared capital assets. This income is not
         included in EBITDA of the Partnership. Management believes that it
         should be added in computing distributable cash as it is cash
         available for distributions.
    (5)  The Partnership has established a performance unit plan as an
         incentive plan for its employees, trustees, directors and other
         service providers. This plan is described in note 8 of the interim
         consolidated financial statements for the three and six months ended
         February 28, 2007. The operating expenses related to this plan are
         non-cash; obligations under the plan will be fully satisfied through
         the issuance of Fund Units and, accordingly, management believes
         that this expense should be added back in computing distributable
         cash.
    (6)  The Partnership makes priority distributions to cover the costs of
         the Fund. Management believes that these priority distributions
         should be deducted in computing distributable cash.
    (7)  Management believes that capital expenditures required to maintain
         the capacity of the operations should be deducted in computing
         distributable cash.
    (8)  The Partnerships financing expenses excluding non-cash amortization
         of deferred financing charges have been deducted in computing
         distributable cash.
    





For further information:

For further information: Deb Hutton, Senior Vice President, Corporate
Communications, CanWest Global Communications Corp., (416) 383-2442,
dhutton@canwest.com; Doug Lamb, Executive Vice President and CFO, CanWest
MediaWorks Limited Partnership, (416) 383-2325, dlamb@canwest.com

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