WINNIPEG – Slow ad sales caused partly by the writers’ strike south of the border led Canwest Global Communications Corp. to post a $33.9 million loss in the second quarter ended February 29, according to financial results released Friday. The Winnipeg-based broadcasting and newspaper conglomerate recorded net income of $7.06 million in the same period a year earlier.
“Overall our second quarter results were solid, despite overall softening market conditions in Canada, and the impact of the Writers’ strike on Canadian television. At the half way mark of our fiscal year, our publishing, specialty television and Australian operations produced strong results,” said Canwest president and CEO Leonard Asper. “Global and E! continued to face a challenging advertising and competitive environment compounded by the impact of the Writers’ strike.”
Consolidated revenues for the second quarter increased 9% to $701.9 million from $644 million in the same quarter last year due mostly to an acquisition.
Revenues generated by the company’s Canadian television assets, including CW Media – formerly the Alliance Atlantis specialty TV channels – increased 41% in the quarter to $234 million from $166 million in the same period a year earlier. EBITDA increased significantly to $20 million from $3 million the previous year.
“The strong increases year over year primarily reflect the acquisition of Alliance Atlantis,” noted Canwest in the financial results.
The Canadian television operations, excluding the CW Media, saw revenues in the second quarter decline to $150 million from $166 million. EBITDA dove to minus $7 million from $3 million in the corresponding quarter a year earlier.
On their own, revenues for the newly acquired Alliance Atlantis specialty TV channels rose 12% to $84 millio, while EBITDA was up 43% to $27 million.
Revenues for the company’s publishing operations for the second quarter rose 1% to $306 million from $303 million a year earlier. The EBITDA for this divison was up 13% to $59 million from $52 million. “The strong improvements in EBITDA reflect [a] continued strong focus on cost containment,” stated the financial results.
Canwest is predicting improved results, but said factors like the state of the ad market during the Summer Olympic Games could have an impact.
