WINNIPEG – CanWest Global’s New Zealand operations saw a 4% increase in consolidated revenues in the first quarter of this fiscal year, the company announced.
It has a 70% stake in CanWest MediaWorks, whose consolidated revenues rose to NZ$73 million in the three months ended Nov. 30, from NZ$70 in the same quarter last year.
Earnings before interest, taxes, depreciation, and amortization, however, fell 11% to NZ$24 million, mainly because of increased spending on television programming.
The company anticipated decreased EBITDA when it reported annual results in October. The broadcaster decided to air more local programming on its flagship TV3 television network, and increase investments in the Campbell Live and the Radio Live radio network.
"We fully expect, over the balance of the fiscal year, that the increased costs associated with the airing of these local programming will be more than offset by lower programming costs in the next three quarters, resulting in an overall EBITDA improvement as the year progresses,” said Tom Strike, Chairman of CanWest MediaWorks NZ and President of CanWest MediaWorks International.
CanWest MediaWorks NZ’s TV and radio continue to gain recognition. TV3’s flagship news program 3 News recently won the Qantas Television Award for the best news program in New Zealand. TV3’s programming also won Qantas Television Awards for best current affairs program, investigative journalism program, best drama, and best comedy. On the radio side, The Edge was the most-listened to music station in the latest New Zealand radio audience survey and The Rock has become the number one station among its target demographic of 20- to 44-year-old males, the company said.
