TORONTO -- Boffo performance from its New Zealand and Australian operations and an improving advertising market have given media company CanWest Global a fiscal boost for the quarter.
Winnipeg-based CanWest posted net earnings for the first quarter of fiscal 2003 ended Nov. 30, of C$68 million ($44.4 million), up from last year's first quarter bottom line of $29.4 million, excluding the gain from the sale of CKVU TV. When the one time gains from the sale are included, 2001's net earnings were $70.5 million. Consolidated revenues were up by 6% to $482.9 million.
"I am encouraged by the strength of the recovery in advertising markets seen first in our international broadcasting assets and that is now increasingly evident in our Canadian television and newspaper operations," said CanWest prexy and CEO Leonard Asper. "Barring unforeseen events, we anticipate continued positive momentum as the year progresses."
One dark spot was Fireworks Entertainment, CanWest's feature film and TV production and distribution division, whose revenues were down 17% to $31.3 million. There were no major feature releases during the quarter, and it continues to be trounced by a weak international distribution market, particularly in Europe.
Analysts say that performance from the company's New Zealand and Australian assets was better than expected and currency changes there are benefiting the balance sheet. Network Ten Australia, of which CanWest holds a 58% interest, reported its highest ever quarterly TV revenues as well as continuing ratings improvements. In its target 16-39 year olds market, the network has the highest commercial share, at 38.6%.
CanWest also received a cash distribution from Network Ten of about $19.6 million in late December.
The newspaper advertising market is on the upswing, making for revenues of $204.9 million from that division, on par with the previous year despite a nine-week labor dispute at the Victoria Times-Colonist.
CanWest management said in a conference call that it intends to continue cutting corporate debt and to reign in costs to improve margins. While declining to provide specifics, Asper said that more asset sales are expected to take place before the end of February to maintain financial covenants. "You can safely assume that we're still active in the divestiture front."
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