TEN reports growth in consolidated revenue and TV segment EBITDA for
WINNIPEG, June 19 /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 growth
in its third quarter consolidated revenue and television segment EBITDA. TEN
reported consolidated revenues of A$237 million and consolidated EBITDA of
A$30 million in its third quarter. These results represent a 14% increase in
consolidated revenues and a 2% decrease in consolidated EBITDA over the third
quarter of last year. The Ten Television Network recorded revenue growth of
10% and EBITDA jumped 20% over the comparable quarter last year. EYE Corp.,
TEN's multi-national out-of-home advertising operation, booked approximately
A$4 million in start-up costs for its North American and UK businesses during
"TEN's television segment achieved very strong third quarter results,
placing the company in a good position towards achieving its year end
targets," commented Tom Strike, President of CanWest MediaWorks International.
"The Ten Television Network's ability to translate its ratings success into
revenue growth and the recovering advertising market have delivered a solid
third quarter result. EYE's EBITDA declined in the quarter as it continues to
absorb anticipated operating losses associated with its start up operations in
the U.K. and U.S."
Consolidated revenues of A$729 million and consolidated EBITDA of
A$187 million were reported for the first nine months of its 2007 financial
year, which ended on May 31, 2007. These results represent an 8% increase in
consolidated revenues and a 7% decline in consolidated EBITDA as compared to
the first nine months of F2006. The Ten Television Network recorded revenues
of A$598 million, a 4% increase over the same period last year. EYE recorded
revenues of A$131 million, up 38% over the same period last year.
"We remain confident that TEN will better last year's TV segment EBITDA
in the 2007 financial year," commented TEN's Executive Chairman, Nick Falloon.
"We have largely held the record prime time audience share gains in our target
18-49 demographic achieved a year ago, and we expect to maintain the network's
competitive, consistent performance."
"EYE continues to focus on returns from its established businesses, while
replicating the profitable EYE Shop and EYE Fly models in the US and UK," Mr.
Falloon continued. Mr. Falloon noted that start-up losses for the new
businesses would be approximately A$15 million for the full year.
TEN declared a final dividend for the January - June 2007 period which
will result in CanWest receiving dividends and interest on its subordinated
debentures in the aggregate amount of approximately A$21 million
(approximately C$19 million at current foreign currency exchange rates) later
this month. Together with distributions received in December 2006, CanWest
will have received aggregate distributions from TEN in the amount of
A$69 million (approximately C$62 million at current foreign currency exchange
rates) in respect of its 2007 financial year.
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.
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.
About CanWest Global Communications Corp.
CanWest Global Communications Corp. (www.canwestglobal.com), (TSX: CGS
and CGS.A) 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 television,
out-of-home advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey, Singapore,
Indonesia, the United Kingdom and the United States.
For further information:
For further information: Deb Hutton, Senior Vice President, Corporate
Communications, CanWest Global Communications Corp., (416) 383-2442,