WINNIPEG – Despite an improving advertising market and lower operating costs, CanWest Global Communications saw a net loss of $46.1 million for its second quarter.
This compares to a net loss of $1.44 billion for the same period last year, after the company recorded charges to goodwill and intangible assets totalling $895 million and a $185 million, respectively. Consolidated revenue for the quarter ended February 28, 2010 was $479 million, down 3% from $493 million year-over-year.
Operating profit was $94 million, up 36% after excluding results of CanWest’s now defunct E! network stations which were sold or closed as of August 31, 2009, and restructuring and broadcast rights impairments.
“For the quarter, on a comparable basis, the company reported marginal top line growth which reflects improvement in the advertising environment in both television broadcasting and publishing businesses,” said CFO John Maguire, in a statement. “The growth in operating profit also reflects the success of steps taken by the company over the last year to improve the competitive position of both businesses through the reduction of operating expenses.”
CanWest’s television operations earned $225 million in revenue, down 5% from the previous year, while revenue for its publishing operations for the quarter were $254 million, down 1% from $258 million a year ago.
In other news, the company’s insolvent newspaper division won an extension of bankruptcy protection until June 30 to allow it time to complete an auction for the publications. The bankruptcy protection, first granted on January 8, was due to expire April 14.
Canwest has agreed to sell its newspaper division to a group of banks in exchange for $828 million of debt unless it gets a higher cash bid or an offer acceptable to its lenders.
