WINNIPEG – The Ten Group, the company that owns CanWest’s Australian television and out-of-home advertising operations, this week reported consolidated revenues of A$294 million and EBITDA of A$107 million for the first quarter of its 2007 fiscal year, ended November 2006.
Revenues were essentially the same as those reported in the same period one year ago, "representing a significant recovery from revenue declines in each of the previous four fiscal quarters," says the press release.
Consolidated EBITDA declined by 15.6% compared to the same period one year ago, reflecting increased programming costs incurred during the quarter. "Notwithstanding the decline in quarterly consolidated EBITDA, TEN television network’s EBITDA margin in the first quarter topped 40% and TEN continues to dominate Australia’s 16-39 demographic and is building a leadership position in the 18-49 demographic as well," says the release.
CanWest holds a 56.4% economic interest in TEN.
TEN declared an interim dividend for the July-December period, which will result in CanWest receiving dividends and interest on its subordinated debentures in the aggregate amount of approximately A$47.8 million (about C$43 million).
"TEN is expected to steadily gain traction through the remainder of the current fiscal year. We are confident that TEN’s television network will garner a 30% revenue share of the Australian television ad market over the course of the coming year," said Tom Strike, president of CanWest MediaWorks International.
This is good news for the Winnipeg-based broadcaster, which is currently "exploring opportunities" for its South Pacific operations.
