WINNIPEG--(Business Wire)--
Canwest Global Communications Corp. ("Canwest") announced today that Ten Network
Holdings Limited ("Ten Holdings") reported second quarter fiscal 2009
consolidated revenues of A$175.3 million and consolidated EBITDA of A$27.3
million. Canwest owns approximately 57% of Ten Holdings.
Ten Holdings, which owns and operates the TEN Television Network ("TEN
Television") in Australia and EYE Corp.`s ("EYE") multi-national out-of-home
advertising business, reported first half consolidated revenues of A$467.6
million and consolidated EBITDA of A$118.9 million for fiscal 2009. Results for
the first six months of fiscal 2009 represent decreases in consolidated revenues
of 11.2% and consolidated EBITDA of 27.4% compared to first half results of the
last fiscal year. These results are in line with the guidance that Ten Holdings
provided to the Australian market on February 17, 2009.
For the six months ending February 28, 2009, TEN Television reported revenues of
A$380.9 million, down 12.2% compared to the same period last year. The results
reflect the absence of the Rugby World Cup and AFL Grand Final and the residual
impact of the Beijing Olympics. TEN Television reported EBITDA of A$114.1
million compared to A$158.7 million for the same period last year. EYE reported
EBITDA of A$5.3 million compared to A$5.5 million for the same period last year.
Cost containment initiatives helped TEN Television offset declines in revenue.
Television costs were 3.0% lower than the prior half year. Consistent with
previous guidance, TEN Television expects its costs to be lower for the full
year even with the launch and operation of its 24-hour all-sport digital channel
ONE, which launched last month, as well as its ongoing investment in
international and domestic program initiatives.
The cost of ONE will be less than A$20 million per year and the channel is
expected to break even in its first full year of operation. ONE, which currently
has an audience reach of more than 60% of TEN Television mainland metropolitan
markets, and this is accelerating rapidly with the take-up of digital
Television.
As previously disclosed on February 17, 2009, a review of assets and contracts
in EYE and TEN Television resulted in non-recurring expense items being
recognised, representing asset write downs and losses on onerous contracts
(A$123 million) and a non-recurring tax expense from the write-off of tax losses
(A$10 million) in EYE as well as asset write downs in TEN Television (A$15
million). These first half fiscal 2009 results also include an income tax
recovery of A$12 million associated with the non-recurring expense items.
"Ten Holdings is responding to the continued short and challenging advertising
market through exercising all operational levers, including rigorous cost
control which is an ongoing focus of management across the group," said Ten
Holdings` executive chairman Nick Falloon.
Mr. Falloon added: "All areas of our business have been comprehensively
reviewed, achieving considerable cost reductions in non income-generating areas
of expenditure. As a result, full year costs will be lower than in 2008."
TEN Television has had a healthy start to the 2009 ratings year. In primetime,
TEN Television remains the number one network in the 16-39 demographic and is
highly competitive in the tightly contested 18-49 demographic.
During the second quarter, Ten Holdings paid an interim dividend which resulted
in Canwest receiving dividends in the amount of approximately A$10 million.
Currently, Ten Holdings does not expect a further dividend payment in the 2009
fiscal year reflecting the impact on earnings from certain non-recurring items
recognised in its financial results in the second quarter.
Ten Holdings` financial results are recorded in accordance with Australian
Equivalents to International Financial Reporting Standards and will be subject
to foreign currency translation and adjustment to Canadian GAAP upon
consolidation with Canwest's other operations.
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Canwest. Statements that are not historical facts are
forward-looking and are subject to important risks, uncertainties and
assumptions.These statements are based on our current expectations about our
business and the markets in which we operate, and upon various estimates and
assumptions.The results or events predicted in these forward-looking statements
may differ materially from actual results or events if known or unknown risks,
trends or uncertainties affect our business, or if our estimates or assumptions
turn out to be inaccurate.As a result, there is no assurance that the
circumstances described in any forward-looking statement will
materialize.Significant and reasonably foreseeable factors that could cause our
results to differ materially from our current expectations are discussed in the
section entitled "Risk Factors" contained in our Annual Information Form for the
year ended August 31, 2008 dated November 24, 2008 filed by Canwest Global
Communications Corp. with the Canadian securities commissions (available on
SEDAR atwww.sedar.com ), as updated in our most recent Management's Discussion
and Analysis for the three months ended November 30, 2008. Unless required by
law, we disclaim any intention or obligation to update any forward-looking
statement even if new information becomes available, as a result of future
events or for any other reason.
About Canwest Global Communications Corp.
Canwest Global Communications Corp. (www.canwest.com), (TSX: CGS and CGS.A,) is
an international media company, is Canada`s largest media company. In addition
to owning the Global Television Network, Canwest is Canada`s largest publisher
of English language daily newspapers and owns, operates and/or holds substantial
interests in conventional television, out-of-home advertising, specialty cable
channels, web sites and radio stations and networks in Canada, New Zealand,
Australia, Turkey, Indonesia, Singapore, the United Kingdom and the United
States.
Canwest Global Communications Corp.
Media:
John Douglas, Vice President, Public Affairs, (204) 953-7737
jdouglas@canwest.com
or
Investors:
Hugh Harley, Director, Investor Relations, (204) 953-7731
hharley@canwest.com
Copyright Business Wire 2009
