CanWest results slide
Company claims 2003 looks better
Winnipeg-based CanWest posted net earnings of C$13 million ($8.5 million) on the year, compared with $30.4 million in 2001. If a series of writedowns on investments were removed from the balance sheet, however, the company would have posted a net profit of $24.2 million.
Revenues for the fiscal year, ended Aug. 31, 2002, were $1.69 billion, up 2% from fiscal 2001. Of that, revenues at the Canadian TV division were $449.3 million, up from $413.9 million last year. At Fireworks Entertainment, the company's film and TV production/distribution division, revenues were $102.5 million, down from the $118.8 million posted a year ago.
Challenging year
"This past year was a challenge by any measure, but on balance, our results for 2002 reflected good progress on the fundamentals," said CanWest prexy-CEO Leonard Asper, who pointed to improved operating results at CanWest's international broadcasting operations, including Network Ten in Australia, whose revs were $183 million for the year, up from $152.8 million.
For the fourth quarter, revenues were $375 million, down 4% from the $389.2 million posted in the year-ago quarter. Decline was attributed to lower revenues from the company's newspaper operations and to Fireworks Entertainment; newspaper revs were down 6% to $186.8 million, and at Fireworks they fell dramatically, to $17.6 million from $49.6 million in the same quarter a year ago. Lack of major motion picture releases this year was to blame for the drop; last year, "Rat Race" contributed substantially to Fireworks' fourth quarter.
CanWest Global's results on the year are preliminary pending an ongoing audit at Fireworks, the outcome of which CanWest predicts will not substantially affect the books.
Non-core divestiture
During the year, the company sold its community newspapers in Atlantic Canada and Saskatchewan for $166.5 million. "We have made significant progress in the divestiture of non-core newspaper and TV assets over the past year," noted Asper, "bringing in approximately C$500 million ($326 million) in proceeds that were applied to reduce our senior debt." CanWest is continuing to look for buyers of its non-core assets, he added.
"We see encouraging signs of improved ad markets as we move into fiscal 2003," said Asper, pointing to an upswing in upfront TV ad sales.
