WINNIPEG – CanWest MediaWorks New Zealand reported consolidated earnings of NZ$68 million for the year ended August 31, 2005, an 11% improvement compared with pro forma combined EBITDA for the same period last year.
Consolidated revenues increased by 9% to NZ$250 million compared to pro forma combined revenue of NZ$229 million during the same period last year for the radio and television broadcasting company. CanWest Global owns 70% of the New Zealand operations.
“Based upon these results, CanWest MediaWorks NZ declared a dividend of NZ 2.3 cents per share payable on November 10, 2005 to shareholders of record on October 28, 2005. CanWest will receive aggregate dividends of NZ$3.6 million,” says Sunday’s press release (Monday, in New Zealand).
For the fourth quarter of fiscal 2005, consolidated EBITDA increased 8% to NZ$17 million from pro forma combined EBITDA of NZ$15 million for the corresponding period the previous year. Consolidated revenue for the quarter was up 9% to NZ$65 million from the pro forma combined revenue of NZ$60 million for the corresponding period the previous year.
TVWorks (the Kiwi ops’ television division) recorded EBITDA of NZ$37 million for the year ended August 31, 2005, an increase of 26% from the pro forma EBITDA of NZ$29 million recorded for the previous year. TVWorks’ revenues for the year were NZ$142 million, up 12% from one year ago. For the fourth quarter of 2005, TVWorks generated EBITDA of NZ$10 million, an increase of 18% from pro forma result for the same period last year. TVWorks’ revenues for the quarter were NZ$39 million up 13% from pro forma revenues for the fourth quarter of 2004.
RadioWorks recorded 6% revenue growth in fiscal 2005 to NZ$108 million compared to a pro forma result of NZ$102 million in the prior year. RadioWorks’ EBITDA of NZ$34 million for the year was 4% higher than the pro forma result for the prior year. For the fourth quarter, RadioWorks recorded a 5% growth in revenues to NZ$26 million compared to the pro forma result for 2004. RadioWorks’ EBITDA of NZ$8 million was essentially flat to the fourth quarter result one year ago. RadioWorks’ EBITDA in 2005 was affected by costs associated with significant investments during the year, including the launch of a new radio network, Radio Live, and the re-branding a number of local radio stations under the More FM brand, all of which should contribute to added revenues and EBITDA in future years.
“These are excellent financial results for both our radio and television operations. The company is performing well on all fronts," said CanWest MediaWorks NZ’s board chairman, Tom Strike. "It is particularly gratifying that these results were achieved while bearing costs associated with the launch of TV3’s flagship current affairs program Campbell Live, which enjoyed a very strong launch into the market in terms of audience response and revenue generation, and a number of significant re-branding initiatives at RadioWorks including the launch of a new nationwide network, Radio Live, all of which are important long term strategies for the company.”
