- TEN HOLDINGS REPORTS SOLID REVENUE AND EBITDA GROWTH IN THE THIRD
- UPDATES TELEVISION OUTLOOK FOR REMAINDER OF THE YEAR -
WINNIPEG, June 12 /CNW/ - Canwest Global Communications Corp. ("Canwest")
announced today that Ten Network Holdings Limited ("Ten Holdings"), which owns
and operates the TEN Television Network ("TEN Television") in Australia and
EYE Corp.'s ("EYE") growing multi-national out-of-home advertising business,
reported its third quarter results for fiscal 2008, and for the nine months
ended May 31, 2008. Canwest owns approximately 56% of Ten Holdings.
Ten Network Holdings Limited
Ten Holdings reported third quarter fiscal 2008 consolidated revenues of
A$250.2 million and consolidated EBITDA of A$38.2 million. These third quarter
fiscal results represent increases in consolidated revenues of 6% and
consolidated EBITDA of 29% compared to normalized third quarter results last
For the first nine months of fiscal 2008 Ten Holdings reported
consolidated revenues of A$776.7 million and consolidated EBITDA of
A$201.9 million. These nine month fiscal results represent increases in
consolidated revenues of 8% and consolidated EBITDA of 14% compared to
normalized first nine month results of the last fiscal year.
Normalized results for 2007 exclude an A$8.9 million one-time gain from
EYE's sale of its investment in Big Tree Outdoor Malaysia reported last year
in its revenue and EBITDA results. (In accordance with Canadian GAAP, this
one-time gain was not included in Canwest's previously reported revenue and
TEN Television achieved revenue growth of 6% and EBITDA increased 20% in
the third fiscal quarter 2008 compared to the third fiscal quarter 2007. For
the first nine months of fiscal 2008, TEN Television reported revenues of
A$640.5 million, a 7% increase over the same period last year.
"Our television costs remain firmly under control and TEN Television
continues to track in line with our previous guidance of television cost
growth (ex selling) within 5% for the full financial year," Nick Falloon, Ten
Holdings' Executive Chairman said. "We remain confident that TEN Television
will increase its share of revenue during the current half calendar year
period to June 30, 2008 and we are pleased with the Network's improved ratings
performance," Mr Falloon added.
EYE achieved strong revenue growth in media sales and was profitable with
modest EBITDA growth in the third fiscal quarter compared to the prior
corresponding period. For the first nine months of fiscal 2008, EYE reported
revenues of A$136.2 million, an 11% increase over the same normalized period
TEN Television Outlook Update
TEN Television updated its outlook for the remainder of the 2008 fiscal
year. Mr Falloon said that the television advertising market was remarkably
resilient in the first half of the fiscal year and revenue was tracking well
despite the prevailing economic conditions. However, recent further
deterioration in external economic conditions is now adversely impacting the
free-to-air television advertising market in Australia.
"Given these influences, combined with the already anticipated impact of
the Beijing Olympic Games in the fourth quarter, management forecasts now
indicate that TEN Television's fiscal 2008 EBITDA will be down by
approximately 10% when compared with the A$237 million achieved in the 2007
financial year," stated Mr Falloon.
Ten Holdings expects to declare its second dividend of A$0.035 per share
on June 25, 2008, for payment on July 16, 2008.
Ten Holdings' financial 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, 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, 2007 dated November 20, 2007
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 six months ended
February 29, 2008. 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.canwest.com), (TSX: CGS and
CGS.A,) is 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.
For further information:
For further information: Media Contact: John Douglas, Vice President,
Public Affairs, Tel: (204) 953-7737, email@example.com; Investor Contact:
Hugh Harley, Director, Investor Relations, Tel: (204) 953-7731,