WINNIPEG – "Our strong first quarter results reflect good execution and a solid start to the fiscal 2008 year,” said Canwest CEO Leonard Asper in the company’s first quarter press release today.
“In our Canadian television segment, Global TV made its best showing in five years during the fall season with respect to its share of the top 10 shows in the three major markets of Toronto, Vancouver and Calgary, with more top shows in the 18-49 demographic than any other broadcaster.”
However, the Hollywood writers’ strike looks to impact that momentum.
Consolidated revenues were $868 million, an increase of 8% from the same quarter one year ago. Consolidated EBITDA was $222 million, compared to consolidated EBITDA of $209 million for the same period in 2007, a 6% increase. Included in first quarter 2008 results are non-recurring restructuring expenses in the amount of $12 million. Excluding these costs, EBITDA would have totaled $234 million, an increase of 12% from the same quarter last year.
Net earnings were $41 million or $0.23 per share, compared to $66 million or $0.37 per share for the same period last year. Net earnings in the quarter were impacted by a number of items including foreign currency swap losses, restructuring expenses and increased interest expense.
Revenues for the company’s publishing operations for the year were $362 million, 5% higher than revenues of $344 million for the same period in fiscal 2007. Publishing EBITDA of $102 million for the year was up 16% from $88 million in fiscal 2007.
Canadian television operations, including CW Media (formerly Alliance Atlantis broadcast segment) specialty television operations in the first quarter of 2008, reported revenues of $308 million up from $208 million the previous year, an increase of 48%. EBITDA increased 84% to $69 million from $38 million the previous year. On a pro forma basis, including revenue and EBITDA of the specialty operations of CW Media for the three months ended November 30, 2006, revenue and EBITDA would have increased 4% from $295 and 4% from $67 million.
Canadian television operations, excluding the CW Media specialty television operations reported a slight increase in revenues to $211 million up from $208 million the previous year and a 14% decrease in EBITDA to $32 million from $38 million the previous year. The lower EBITDA is primarily related to higher marketing expenses associated with the launch of E!, and timing of program expense, says the press release.
The newly acquired specialty television assets reported revenues of $97 million and EBITDA of $37 million for the quarter, an increase of 12% on revenue and 29% on EBITDA compared to the same period last year.
In Australia, Network TEN’s revenue of $242 million is a 12% increase from the $216 million during the same quarter in the previous year. TEN’s EBITDA of $104 million was a 19% increase over the $87 million from the same quarter in fiscal 2007.
“As we move into 2008 we anticipate a continuing improvement in overall operating results,” continues the release. “Our operations in Australia have just completed their best ever television ratings year in terms of audience share and will continue to be a major contributor to our EBITDA growth. Eye Corp. continues to grow its share of out-of-home advertising in the markets in which it operates by adding to its product offering.”
“At Canadian broadcasting in the remainder of fiscal 2008 and beyond the company will focus on integrating the recently acquired specialty broadcasting assets and ensuring these premier brands deliver on the promise of re-balancing the revenue streams of our broadcasting group in order to spur renewed growth,” reads the release.
“Our conventional channels, while showing good early returns on the primetime line-up will be affected by the ongoing Hollywood writers’ strike, the impact of which should be reduced by the launch of new reality based shows in the new year including the next installment of Survivor, The Celebrity Apprentice, Big Brother (three episodes per week), the launch of mid-season program Cashmere Mafia, the highly anticipated launch of a new Canadian show called The Guard, and the airing of new episodes of House, Prison Break, The Simpsons, Las Vegas and Bones."
