CanWest's First Quarter Operating Profit Up 21 Percent; Revenue Increases 12 Percent.

WINNIPEG, Mb--(BUSINESS WIRE)--Jan. 15, 1996--CANWEST GLOBAL (TSE, WINNIPEG STOCK EXCHANGE: CWW )

Performance Highlights for the First Quarter Ended November 30, 1995 Compared With 1994 Results:

    - Revenue up 12 percent to $102.6 million
    - Operating profit before amortization up 21 percent to $37.3
      million
    - Interest in earnings of Network Ten up 11 percent to $17.7
      million
    - Earnings from continuing operations up 6 percent to $31.2
      million
    - Consolidated net earnings up 10 percent to $32.1 million
    - Earnings per share from continuing operations up 6 percent to
      $0.76 per share
    - Earnings per share up 8 percent to $0.78 per share
    - Cash flow from continuing operations up 6 percent to $45.3
      million
    - Cash flow per share from continuing operations up 6 percent to
      $1.11 per share
    - Combined CanWest Global and Network Ten revenue up 14 percent
      to $220.1 million
    - Combined CanWest Global and Net work Ten operating profit
      before amortization up 29 percent to $85.9 million.

                           Three Months
                         Ended November 30

                                 1995       1994    Increase
                                 $000       $000     Percent

CANWEST GLOBAL
Revenue                         102,600    91,843    11.7

Operating profit
 before amortization             37,338    30,893    20.9

Interest in earnings of
 Network Ten (1)                 17,686    15,942     0.9

Earnings from continuing
 operations (net of income
 taxes)                          31,191    29,355     6.3

Gain from discontinued
 operations (2)                     957       -        -

Net earnings                     32,148    29,355     9.5

Cash flow from continuing
 operations                      45,339    42,911     5.7

Earnings per share
 from continuing operations (3)
 Basic                           $ 0.76    $ 0.72     5.6
 Fully diluted                   $ 0.75    $ 0.71     5.6

Cash flow per share
 from continuing operations (3)
 Basic                           $ 1.11    $ 1.05     5.7
 Fully diluted                   $ 1.09    $ 1.03     5.8

NETWORK TEN (1)
 Revenue                        117,544   100,909    16.5

 Operating profit before
   amortization                  48,515    35,526    36.6

 Interest in earnings of
  Capital Television                838     3,823     N/A

Earnings (4)                     33,004    31,197     5.8

Cash Flow (4)                    35,705    30,971    15.3

NOTES:

(1) CanWest Global has a 57.5 percent economic interest in Network Ten in Australia, which is recorded on the equity basis of accounting. Network Ten's results have been translated to Canadian dollars and prepared in accordance with accounting principles generally accepted in Canada.

(2) Gain from discontinued operations includes the company's gain on the sale of its interest in Talk Radio, less its proportionate share of losses for the period from September 1, 1995 until disposition.

(3) Per share amounts have been adjusted to reflect the February 1995 two-for-one stock split.

(4) Before interest on subordinate debentures held by CanWest Global.

Results for the first quarter of fiscal 1996 continue CanWest Global's trend of setting record levels of revenue and earnings. Net earnings for the three month period ended November 30, 1995 increased to $32,148,000 or $0.78 per share from $29,355,000 or $0.72 per share in the prior year.

CanWest Global reported consolidated revenue for the three month period ended November 30, 1995 totalling $102,600,000, an increase of $10,757,000 or 11.7 percent over revenue of $91,843,000 in the first quarter last year. Operating profit before amortization increased 20.9 percent from $30,893,000 last year to $37,338,000 in the quarter ended November 30, 1995.

The CanWest Global System, the Company's Canadian television operation, reported revenue for the three month period ended November 30, 1995 of $91,876,000, up 11.4 percent from revenue of $82,488,000 last year. Operating profit from Canadian operations at $37,188,000 increased $8,780,000 over the previous year.

Included in the consolidated results are the Company's proportionate share of the accounts of TV3 New Zealand. In the first quarter of fiscal 1996. TV3 reported revenue 14.6 percent ahead of the prior year. This growth is attributed to increased market share. The results include CanWest Global's share of the net earnings of Network Ten in Australia, in which the Company holds a 57.5 percent economic interest. In the first quarter, results at Network Ten continued to improve as it again reported record levels of revenue and net earnings. Network Ten contributed earnings of $17,686,000 in 1995 compared to $15,942,000 in the prior year. Capital Television's operating results have been consolidated from October 21, 1995, the effective date Network Ten acquired the remaining 50 percent interest in this affiliate, which was formerly accounted using the equity method. As a result, although the "Interest in earnings of Capital Television" reflects a reduction in earnings for the quarter, Capital Television contributed a total of $3.9 million to Network Ten's earnings in the first quarter of 1996, compared to $3.8 million a year earlier.

Commenting upon the strong start to the 1996 fiscal year, CanWest Chairman and Chief Executive Officer I.H. Asper, O.C., Q.C., said: "Obviously we are delighted to see such impressive growth in all of our major financial components. We are particularly pleased that our Canadian operations, which rebounded last year after withstanding a difficult economic period in the latter half of fiscal 1994, continue to flourish in the first quarter, and are on pace for yet another record-breaking year."

Executive Vice-President, Business Development and Chief Financial Officer Tom Strike expressed optimism that 1996 could well be yet another record-breaking year for the company: "With the first quarter off to such a strong start, we are confident that revenue and operating profit will continue this outstanding growth pattern through the remainder of 1996."

"We are also extremely pleased with the ongoing growth in earnings being contributed from our interests in Network Ten and TV3," he added. "These earnings are very significant to us when tabulating our financial results."

Cash flow from continuing operations in the first quarter totalled $45.3 million, up significantly from cash flow of $42.9 million in the prior year. Cash flow in the first quarter includes distributions to security holders of Network Ten of $26.4 million in the first quarter this year and $27 million in the same period last year. Cash Flow from continuing operations per share was $1.11 in 1996 compared to $1.05 in the prior year.

CanWest Global operates the CanWest Global System in Canada and has significant broadcast interests internationally.

CONTACT: CanWest Global Communications Corp., Winnipeg

Thomas C. Strike, 204/956-2025