WINNIPEG--(Business Wire)--
Canwest Global Communications Corp. ("Canwest") announced today that Ten Network
Holdings Limited ("Ten Holdings") reported for the first nine months of fiscal
2009 consolidated revenues of A$678.6 million and consolidated EBITDA of A$128.0
million. These results represent decreases in consolidated revenues of 12.6% and
consolidated EBITDA of 36.6% compared to first nine months results of the last
fiscal year.
Ten Holdings owns and operates the TEN Television Network ("TEN Television") in
Australia and EYE Corp.`s ("EYE") multi-national out-of-home advertising
business. Canwest owns approximately 57% of Ten Holdings.
TEN Television`s revenue for the third quarter was A$174.1 million, down 15%
compared to same period last year. EYE revenues for the third quarter were
A$36.9 million, down 15% compared to the same period last year. Despite this
decline, EYE achieved positive EBITDA for the quarter. For the nine months ended
May 31, 2009, TEN Television reported revenues of A$555.0 million, down 13.3%
compared to the same period last year. For the nine months ended May 31, 2009,
EYE reported revenues of A$123.6 million, down 9.2% compared to the same period
last year.
"The continued negative impact of this challenging and difficult advertising
market was the key factor in on our third quarter revenue being 15% below the
prior corresponding period," stated Ten Holdings' executive chairman, Nick
Falloon. "As per previous guidance, full year TV costs (reported and ex-selling)
will be down on 2008. We remain focused on cash flow management and debt
reduction, and expect that drawn bank debt will be approximately A$600 million
at the end of the financial year on August 31, 2009."
Mr. Falloon added, "Based on forecast debt levels, our strict cost control and
our sales expectations for the final quarter, we remain of the view that Ten
Holdings will be within the requirements of its banking covenants at the end of
the financial year."
"TEN Television`s revenue was also affected by the market`s perception that
ratings would not improve over the prior year, despite the new program
initiatives including MasterChef Australia, Talkin` `bout Your Generation,
Recruits and Merlin," Mr. Falloon stated. These properties have now demonstrated
their ability to grow audiences and attract advertiser interest gaining status
as the new hit shows of the season.
"It is the number one network in primetime in both the key demographics of 18-49
and 16-39," Mr. Falloon said. "The new digital multi-channel ONE has also
successfully launched and continues to grow in terms of revenue and ratings."
Ten Holdings today confirmed the guidance provided in a release of the first
half 2009 results, that it expected that no further dividend would be paid in
the 2009 fiscal year. This decision reflects the impact on current year earnings
of non-recurring items recognized 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 six months ended February 28, 2009. 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,) 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 and web sites in Canada, New Zealand, Australia, Indonesia, Singapore,
the United Kingdom and the United States.
Canwest Global Communications Corp.
Media:
John Douglas, Vice President, Public Affairs
Tel: 204-953-7737
jdouglas@canwest.com
or
Investor:
Hugh Harley, Director, Investor Relations
Tel: 204-953-7731
hharley@canwest.com
Copyright Business Wire 2009
