WINNIPEG – CanWest Global’s New Zealand division had a strong quarter.
CanWest MediaWorks (NZ) Limited, recorded revenue and EBITDA growth for the three month period ending May 31, 2006. Consolidated revenue for the quarter was up slightly to NZ$60.7 million from NZ$60.4 million from the same quarter in the previous year. Consolidated EBITDA increased 1% to NZ$13.4 million from NZ$13.2 million in the same quarter in fiscal 2005. For the nine months to date, consolidated revenue was up 3% from the comparable prior period, while consolidated EBITDA was down 7% from the same period in fiscal 2005.
During the quarter, TVWorks performed strongly by maintaining tight control over its operating costs, said the company, and recorded an 8% increase in EBITDA for the quarter to NZ$7.5 million, up from NZ$6.9 million the year before, despite its revenues staying at the same level as the previous comparable period.
Also during the quarter, RadioWorks recorded revenues of NZ$26.1 million, a slight increase from the NZ$25.8 million from the same quarter the year earlier. EBITDA was down slightly to NZ$6.9 million from NZ$7.1 million the previous year.
"CanWest MediaWorks International President Tom Strike said that the relatively flat results were expected after three fiscal years of very strong revenue and EBITDA growth," says the release.
"It was inevitable that those previous years’ levels of growth would moderate, but our television and radio businesses in New Zealand, are both performing well and we are much better positioned for a softening of the economic environment than we would have been a couple of years ago," said Strike.
New Zealand CEO Brent Impey added that while EBITDA was down relative to last year, the company’s performance continues to improve through fiscal 2006. "At the halfway point of the fiscal year, we reported a 10% decrease in EBITDA relative to the same period the previous year. We have now closed that gap to 7% and while we are hoping to come close to matching last year’s performance for the full year, this target could be a challenge in the rapidly tightening economic environment that we are now experiencing," said Impey.
Impey also pointed out that the company’s flagship TV3 television network is attracting record audience shares for key shows such as 3 News, House, Boston Legal, America’s Top Model and CSI. "Radio is also performing very solidly, and in the most recent nationwide audience survey, The Edge took the top spot among music stations with the most number of listeners, and The Rock became the top music network by audience share," he said.
