- TEN TV RECLAIMS INDUSTRY BEST EBITDA MARGIN -
WINNIPEG, March 26 /CNW/ - Canwest Global Communications Corp.
("Canwest") announced today that Ten Network Holdings Limited ("Ten
Holdings"), which owns and operates the TEN Television Network ("TEN") in
Australia and EYE Corp.'s ("EYE") growing multi-national out-of-home
advertising business, reported its first half year results for fiscal 2008,
for the six months ended February 29, 2008. Canwest owns approximately 56% of
Ten Network Holdings Limited
Ten Holdings reported second quarter fiscal 2008 consolidated revenues of
A$199.5 million and consolidated EBITDA of A$41.2 million. These second
quarter fiscal results represent increases in consolidated revenues of 5.2%
and consolidated EBITDA of 2.5% compared to normalized second quarter results
last year. For the first six months of fiscal 2008 Ten Holdings reported
consolidated revenues of A$526.5 million and consolidated EBITDA of
A$163.7 million. These first half year fiscal results represent increases in
consolidated revenues of 8.9% and consolidated EBITDA of 11.0% compared to
normalized first half results of the last fiscal year. Normalized results for
2007 exclude the A$8.9 million one time gain from EYE's sale of Big Tree
Outdoor Malaysia reported last year in revenue and EBITDA results. (Under
Canadian GAAP, this one time sale gain was not included in revenue and
TEN Television Network
For the first half of fiscal 2008, TEN reported revenues of
A$433.8 million, a 7.7% increase over the same period last year, and EBITDA of
A$158.7 million, an 11.4% increase compared to the same period last year. TEN
achieved an aggregate metropolitan television advertising market share of
30.8% in the six months ended December 31, 2007, which exceeded the prior
comparable period. TEN also achieved a 36.6% EBITDA margin for the six month
period in fiscal 2008, an improvement from 35.4% achieved over the same period
"Our strategy to expand TEN's pipeline of international programming and
enhance its domestic production slate is positively affecting both ratings and
earnings. TEN is enjoying its strongest start to a ratings year in key
advertiser buying demographics since OzTAM ratings began in 2001. For the six
weeks of survey 2008 to date, we're number one in 18-49, enjoying significant
audience growth in all major demographics and gaining revenue market share.
All of this has been achieved while returning TEN's EBITDA margin to its
customary industry leading status, now nearly 37%," commented Nick Falloon,
Ten Holdings' Executive Chairman.
"To this point, TEN is already ahead of last year in revenue pacing in
the March/April period and tracking well in other months. As we predicted, TEN
is gaining market share, and we expect to further improve on our record start
in key buying demographics," added Mr Falloon.
For the first six months of fiscal 2008, EYE reported out-of-home
advertising revenues of A$92.7 million, up 15% from the normalized comparable
period last year, and EBITDA of A$5.5 million which increased marginally from
the normalized EBITDA for the same period last year.
"EYE's start-up businesses in the United States and United Kingdom are
tracking well as it invests for the long term. We remain confident in EYE's
business model and the potential for its international operations to
ultimately mirror the financial performance of their established Australasian
counterparts," commented Nick Falloon.
During the second quarter, Ten Holdings paid an interim dividend which
resulted in Canwest receiving dividends in the amount of approximately A$52
million (approximately C$46 million). Ten Holdings expects to declare its
second dividend in June 2008, which will be payable in July 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 three months ended
November 30, 2007, dated January 10, 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: Dervla Kelly, Vice President,
Corporate Communications, Tel: (416) 442-3807, email@example.com; Investor
Contact: Hugh Harley, Director, Investor Relations, Tel: (204) 956-2025,