TEN reports growth in revenue and EBITDA for Q2 2007
WINNIPEG, March 27 /CNW/ - CanWest Global Communications Corp. announced
today that The Ten Group pty Limited (TEN), the company that owns CanWest's
Australian television and out-of-home advertising operations, reported second
quarter revenue and EBITDA growth. TEN reported consolidated revenues of
A$198.6 million and consolidated EBITDA of A$49.5 million in its second
quarter. These results represent a 17% increase in revenues and a 14% increase
in EBITDA over the second quarter of last year.
"With the momentum achieved in the second quarter of fiscal 2007, TEN's
outlook for the year remains strong for both its television and out-of-home
operations," commented Tom Strike, President of CanWest MediaWorks
Consolidated revenues of A$492.4 million and EBITDA of A$156.8 million
were reported for the first six months of fiscal 2007, which ended on
February 28, 2007. These results represent a 6% increase in revenues and an 8%
decline in EBITDA as compared to the first half of F2006. TEN's Australian
television operation recorded revenues of A$402.9 million, a 1% increase over
the same period last year, and EBITDA of A$142.4 million, a 9% decrease
compared to the same period last year. Eye Corp. (EYE), TEN's out-of-home
advertising operation, recorded revenues of A$89.5 million, up 40% over the
same period last year, and EBITDA of A$14.4 million, which decreased slightly
compared to the same period last year.
TEN's Australian television operation recorded revenues and EBITDA of
A$151.1 million and A$41.5 million in the quarter. TEN achieved a metropolitan
television advertising market share of 30.3% in the six months ended
December 31, 2006.
"TEN has capitalised on its record 2006 audience ratings and a
strengthening advertising market for this improved television result,"
commented TEN's Executive Chairman, Nick Falloon. "TEN secured both rate and
volume increases in annual renewal negotiations with its major advertisers and
will strive to maintain its 30% ad revenue share in calendar 2007."
"With all of TEN's 2006 hits returning, plus a strengthening
international program line-up, TEN is confident in its competitive position,"
added Mr. Falloon. "We're also excited about the opportunities that TEN is
creating for viewers and advertisers through its new digital media business."
EYE recorded revenues and EBITDA of A$47.5 million and A$8.0 million,
respectively, in the quarter.
"While EYE's revenue rose 40% in the half, earnings were impacted, as
expected, by investment in our new USA shopping mall and European airport
operations, which are already demonstrating their potential," said Mr.
Falloon. He added that EYE had booked an A$8.9 million non-recurring gain on
the sale of its Malaysian investment in Big Tree Outdoor, which was partly
offset by start-up losses in the US and UK of A$6.5 million and an
A$1.6 million non-cash expense arising from the straight-lining of
newly-contracted lease arrangements.
During the second quarter, TEN paid an interim dividend which resulted in
CanWest receiving dividends and interest on its subordinated debentures in the
aggregate amount of A$47.8 million or 43.1 million Canadian dollars. Ten
expects to declare its second dividend in June 2007, which will be payable in
These results are recorded in accordance with Australian Equivalents to
International Financial Reporting Standards and will be subject to foreign
currency translation and adjustment to Canadian GAAP upon consolidation with
CanWest's other operations.
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
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assumptions. The results or events predicted in these forward-looking
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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
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CanWest Global Communications Corp. (www.canwestglobal.com), (TSX: CGS
and CGS.A, NYSE: CWG) an international media company, is Canada's largest
media company. CanWest is Canada's largest publisher of daily newspapers and
also owns, operates and/or holds substantial interests in conventional
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For further information:
For further information: Deb Hutton, Senior Vice President, Corporate
Communications, CanWest Global Communications Corp., (416) 383-2442,