WINNIPEG – First quarter profits are up at debt-laden Canwest Global.
For the three months ended November 30, 2009, Canwest reported operating profits increased 29% from $137 million last year to $176 million, excluding the $29 million gain from the reversal of the CRTC Part II fees.
Revenue of $571 million was down 10% from $634 million for the same period in the previous year (revenue for the first quarter of fiscal 2009 included results of the defunct E! Network which it shuttered on August 31, 2009). Excluding these operations, revenue for first fiscal quarter of 2010 decreased by 6%.
The company reported net earnings of $653 million including the gain realized from the sale of its interest in Ten Network Holdings Limited of $570 million.
“These results reflect actions taken over the past year in all areas to strengthen our financial position,” said president and CEO Leonard Asper, in a statement. “Although the revenue environment continues to be difficult, it gradually improved from September through to November in both broadcasting and publishing, and we have taken steps to enhance our competitive position through the closure or sale of unprofitable operations and significant reduction in operating costs.”
Canadian television operations, including the CW Media specialty television operations, saw operating profit in the first quarter of $109 million, up 56% compared to $70 million for the same period in the previous year. Excluding E! Network from the prior year, first quarter operating profit was up 37%, which Canwest attributed “industry leading revenue performance in specialty and conventional television” combined with continued cost saving initiatives.
Operating profits in its publishing division were $70 million for the first quarter, down 5% when compared to the same period in fiscal 2009.
Canwest is undergoing two separate creditor protection filings, one for its holding company and broadcasting assets, and the other for its publishing business which controls the majority of its daily newspapers.
