Canwest Sets New Standards for First Quarter.WINNIPEG, Manitoba--(BUSINESS WIRE)--Jan. 16, 1997--CANWEST GLOBAL COMMU COMMU Communications Unit (NYSE NYSE See: New York Stock Exchange CWG CWG Conversations with God CWG Core Working Group CWG Certification Working Group (WiMAX Forum) CWG Collaboration Working Group CWG Commercial Working Group (TAT-14) , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). CGS CGS centimeter-gram-second system. CGS or cgs abbr. centimeter-gram-second system. CGS, c.g.s. .S CGS.A ) - Net earnings up 66 percent over prior year on 37 percent increase in combined EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ; - Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the up 71 percent over last year CanWest Global Communications CanWest Global Communications Corp. TSX: CGS TSX: CGS.A NYSE: CWG is one of Canada's largest international media companies. The company's head office is situated in Winnipeg, Manitoba, at the tallest building (CanWest Global Place) in the city and it is on the Corp., one of Canada's leading multinational television broadcasters, today reported first quarter financial results for the three months ended November 30, 1996. Combined revenue from broadcasting operations in Canada, Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. increased 29.2 percent, while combined operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before amortization (EBITDA) was up $24.6 million, or 37.7 percent over the first three months of fiscal 1996. Earnings from continuing operations in the first quarter increased $22.2 million or 71.3 percent over the comparable period last year, while net earnings were up $21.3 million or 66.2 percent. Earnings per share from continuing operations were $0.36 per share in quarter one, up 56.5 percent over the first quarter of fiscal 1996, while combined cash flow from continuing operations rose $21.5 million or 54.4 percent this year. Strong results from each of the Company's Canadian operations, TV3 in New Zealand, and Network Ten in Australia were further enhanced through development activities in the first quarter. Effective November 1996, results of TV3 have been fully consolidated in accordance with Canadian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . The Company also increased its economic interest in Network Ten to approximately 66 percent in November. Also, in order to correct an historical two-month lag in the inclusion of TV3 results, the first quarter results reflect an additional two months of the Company's share of the TV3 results. The Company is proud that its impressive financial results are being generated at the same time it is improving the quality of domestic programming in each of its markets. In Canada, CanWest's Canadian programming has just been nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. for an unprecedented 28 Gemini Awards The Gemini Awards are an annual awards ceremony in Canada. First awarded in 1986, the Geminis celebrate the achievements of TV members of the Academy of Canadian Cinema and Television. Essentially, it presents awards for the best television productions in Canada. , including Best Dramatic Series for its flagship drama, Traders. These nominations represent more than any other private broadcaster. The prestigious Geminis are the pre-eminant awards for excellence in Canadian television Canadian television may refer to:
Noun Austral an Australian name for a recent immigrant, esp. one from Europe dramatic series in the forthcoming months, while TV3 has built the domestic side of its program schedule to include 7 of its top 10 shows. -0-
COMBINED FINANCIAL RESULTS
(in thousands of Canadian dollars)
Three Months Ended November 30
------------------------------
1996 1995 percent Change
Revenue
Canada 100,978 91,876 9.9
Australia 91,792 67,588 35.8
New Zealand 27,045 10,724 152.2
-------- -------- -----
219,815 170,188 29.2
-------- -------- -----
Broadcast operating
profit before
amortization
Canada 43,461 39,005 11.4
Australia 37,204 27,896 33.4
New Zealand 11,609 3,352 246.3
-------- -------- -----
92,274 70,253 31.3
Corporate and
development
expenses 2,478 5,019 (50.6)
-------- -------- -----
EBITDA 89,796 65,234 37.7
Earnings from
continuing
operations 53,440 31,191 71.3
Net earnings 53,440 32,148 66.2
Cash flow from
continuing
operations 60,909 39,445 54.4
Earnings per share
from continuing
operations
- Basic $0.36 $0.23 56.5
- Fully diluted $0.36 $0.22 63.6
Cash flow per share
- Basic $0.41 $0.29 41.4
- Fully diluted $0.41 $0.28 46.4
Note: Per share results are affected by the three million (nine
million after stock split) share issue in June, 1996.
Commenting on the exceptional results, I.H. Asper, O.C., Q.C., Chairman and Chief Executive Officer said: "With the first quarter off to such a robust start, our confidence remains high that all of our broadcasting operations will continue to flourish as the year progresses, and we will once again be reporting record results at year-end." "We are especially pleased at the continued strengthening of results in the South Pacific which supports our decisions to increase our interests in those operations," said Tom Strike, CanWest Executive Vice-President. RECENT EVENTS In addition to the excellent first quarter results, CanWest has reported several other significant developments in recent months which enhance the continued positive outlook for 1997. CanWest announced in September that it would be entering the field of cable network broadcasting, starting up the Prime TV specialty cable channel in Canada. CanWest's new channel is expected to begin broadcasting in September 1997, or as soon thereafter as cable carriage can be negotiated. Also in September, the Company's application for a licence for new television services in Victoria and throughout Vancouver Island Vancouver Island (1991 pop. 579,921), 12,408 sq mi (32,137 sq km), SW British Columbia, Canada, in the Pacific Ocean; largest island off W North America. It is c.285 mi (460 km) long and c. was heard. A petition signed by over 64,000 islanders Islanders may refer to:
CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column at the hearing. A decision is expected in January 1997. In November, the Company learned that its application for new television services in the province of Alberta was denied. However, an appeal was filed with the federal cabinet asking that the matter be sent back to the CRTC for a new hearing. Cabinet is expected to render its decision in February 1997. In December, the Company's application to acquire CKMI CKMI CKM Instructor (trademark of Hudson Associates Consulting, Inc.; under license to eKnowledgeCenter) in Quebec, in partnership with Tele-Metropole Inc., was heard, with a decision expected by March 1997. Internationally, CanWest announced in early October that TV3 had been granted broadcast licences to operate a new urban-focused television network in New Zealand. The new service, TV4, will be launched in the Summer of 1997. During the first quarter CanWest increased its economic interests in both TV3 and Network Ten. CanWest entered into an agreement to acquire Westpac's interest in TV3. CanWest also financed the acquisition of approximately 17 percent of the issued and outstanding ordinary shares of Network Ten. This resulted in an increase in the Company's interest in Network Ten to approximately 66 percent from 57.5 percent. Further expansion of our financing activities in Australia in January, 1997, increased our interest in the Network to 76 percent. Our economic interest in Network Ten may ultimately be reduced if a proposed plan to offer shares to the public is approved by all relevant parties. LOOKING FORWARD "When one considers the impressive strides the Company took in 1996 (30 percent operating profit growth), people might think it unusual, or unrealistic to forecast appreciable ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. improvement again in 1997, yet, that is precisely what we are forecasting," said Mr. Asper. "The 1997 fiscal year is now well underway and the first quarter results clearly support our optimism for the remainder of the year." "Strengthening our financial base, of course serves our shareholders well. But, it also allows us to better serve our advertisers and our audience by allowing us to increase our investment in programming. Our goal is to continue to improve both our financial performance and the quality of our program offerings," Mr. Asper added. "TV3's new national network will be on the air by mid-year and we expect it to be profitable a year after start-up; our increased ownership position in TV3, will most assuredly strengthen our earnings for 1997; and our increased economic position in Network Ten will also enhance our bottom line this year," said Gerry Noble, CanWest Vice-President, Operations."And in Canada, we are optimistically op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op awaiting decisions on our applications for Victoria and Quebec, and the Cabinet appeal of the recent CRTC decision regarding Alberta." CanWest Global Communications Corp. (NYSE - CWG and TSE - CGS.S and CGS.A) is a leading international television broadcaster. In Canada, the Company owns and operates the CanWest Global System, Canada's largest private sector broadcaster. Internationally, the Company owns substantial economic interests in Australia's Network Ten and New Zealand's TV3. Through these broadcasting operations, CanWest reaches approximately 35.8 million English-speaking people in markets that are estimated to have generated approximately C$4.4 billion in advertising expenditures in 1995. CONTACT: CanWest Global Communications Corp John E. Maguire, 204/956-2025 204/947-9841 (FAX) |
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