CanWest's Australian Operations Report Record Results for Fiscal 2004
13 Ottobre 2004 - 8:00AM
PR Newswire (US)
CanWest's Australian Operations Report Record Results for Fiscal
2004 TEN's EBITDA up 33% on 14% revenue increase; Television's ad
market share tops 30% WINNIPEG, Oct. 13 /PRNewswire-FirstCall/ --
CanWest Global Communications Corp. announced today that The TEN
Group pty Limited (TEN), the company which owns its Australian
television and out-of-home advertising operations, reported
consolidated revenues of A$836.3 million for the year ended August
31, 2004, an increase of 14% from the A$732.7 million recorded for
the previous fiscal year. TEN's consolidated EBITDA of A$287.2
million was up 33% compared to the A$215.5 million for previous
fiscal year. CanWest holds a 56.6% economic interest in TEN. In
Canadian dollar terms, TEN's consolidated revenues increased
approximately 23% from $651 million in fiscal 2003 to approximately
$800 million in the current period. Consolidated EBITDA increased
43% from $191 million last year to approximately $274 million in
fiscal 2004. Nick Falloon, TEN's Executive Chairman, said that TEN
produced its most outstanding results yet by focussing on its core
television business and receiving much improved returns from Eye
Corp., its out-of-home advertising operation. "This was a very
competitive year in Australian television, particularly given that
Seven Network carried the Olympics," said Falloon. "But TEN's
strong program schedule delivered on its target and the sales team
delivered on the revenue." TEN's rising ad market share, now more
than 30%, is the result of the ongoing ratings lead among the
network's target demographic of 16 to 39 year old viewers, and
securing the number two spot among 25-54 year old viewers and all
viewers. Television's revenue increased by 14% to A$756.1 million
and television's EBITDA to A$272.1 million, an increase of 29% over
last year. Our major series such as Australian Idol, Big Brother,
plus big event programs such as Australian Football League clearly
led the way, but TEN now has unprecedented strength across the
breadth of its schedule," added Falloon. "TEN will maintain that
strength through fiscal 2005 as the programming line-up will be
boosted by exciting new shows such as The X Factor, the latest
instalment in the Law and Order franchise and the Australian
version of Queer Eye for the Straight Guy." Eye Corp., TEN's
out-of-home advertising operation, also made significant
improvements over the previous fiscal year. Eye Corp.'s revenue
increased by 11% over the previous year to A$80.2 million, and its
EBITDA was up more than 200% to A$15.1 million from A$5.0 million
the year before. Leonard Asper, CanWest's President and CEO,
commented that the excellent ratings and financial results from the
Company's Australian operations in fiscal 2004, bodes well for
future growth in the South Pacific. "TEN's outstanding results, and
its confirmation as Australia's number two commercial network
overall, coupled with significantly improved results from Eye
Corp., demonstrates our Australian operations outstanding shape,"
said Asper. "The recent re-election of the government of Prime
Minister John Howard, whose policies support liberalization of
media ownership laws, will hopefully re-invigorate the debate over
these regulations in Australia, creating substantial growth
opportunities for TEN, given its strong balance sheet and cash
flow." Asper pointed to the positive moves made by TEN to expand
its out-of-home business throughout the South Pacific. "Eye Corp's
move into New Zealand with both its Eye Fly airport advertising
business and Eye Shop, its shopping mall company, are small but
important moves," said Asper. "Eye Corp. is limited only by the
imagination of its operators in terms of where it can grow." TEN
has made an encouraging start to fiscal 2005, recording a 15%
increase in television revenue for the first quarter and there are
also positive signs for Eye Corp. CanWest has already received
distributions in interest and dividends of A$109.5 million from
Network TEN over the course of fiscal 2004, including a dividend
payment of A$5.9 million in July 2004. CanWest will also receive
interest on its outstanding subordinated debentures of
approximately A$39.2 million in December 2004. The first
distribution of interest and dividends for fiscal 2005, derived
from earnings for the period from July 1, 2004 to December 31, 2004
is expected to be paid in January 2005. This news release contains
comments or forward-looking statements that are based largely upon
the Company's current expectations and are subject to certain
risks, trends and uncertainties. These factors could cause actual
future performance to vary materially from current expectations.
The Company may not update or revise any forward-looking statements
or comments, whether as a result of new information, future events
or otherwise. CanWest Global Communications Corp. (NYSE: CWG; SX:
CGS.S and CGS.A, http://www.canwestglobal.com/), an international
media company. CanWest is Canada's largest media company. In
addition to owning the Global Television Network, CanWest is
Canada's largest publisher of daily newspapers, and also owns,
operates and/or holds substantial interests in conventional
television, out-of-home advertising, specialty cable channels, Web
sites and radio networks in Canada, New Zealand, Australia and
Ireland. DATASOURCE: CanWest Global Communications Corp. CONTACT:
Geoffrey Elliot, Vice President, Corporate Affairs, Tel: (204)
956-2025, Fax: (204) 947-9841
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