Canwest reports first half 42 percent profit increase - six month results indicate another record breaking year in 1997 (Part 1 of 3).

WINNIPEG, Manitoba--(BUSINESS WIRE)--April 18, 1997--CanWest Global Commu (TSE CGS.S. CGS.A., NYSE CWG) CanWest Global Communications Corp., Canada's leading multinational television broadcaster, today reported record-breaking financial results for the six months ended February 28, 1997:

- Combined revenue from broadcasting operations in Canada, Australia and New Zealand increased 28.1 percent, to $407.3 million;

- Combined broadcast operating profit was up $33.9 million, or 28.3 percent over the first six months of fiscal 1996;

- Earnings from continuing operations in the first half of fiscal 1997 increased $23.8 million or 41.8 percent over the comparable period last year;

- Net earnings up $22.9 million or 39.5 percent;

- Earnings per share from continuing operations were $0.55 per share for the first six months, up 34.1 percent over the first half of fiscal 1996;

- Combined cash flow from continuing operations rose $25.8 million or 35.1 percent.

"We stated at the end of the first quarter that we expected 1997 to be even better than last year, building upon the record-setting year we had in 1996. The results announced today have more than lived up to our expectations and they clearly support our optimism for the remainder of the year," said I.H. Asper, O.C., Q.C., Chairman and CEO. "What is even more satisfying is that earnings per share also increased in spite of the fact that this year we have more shares outstanding, as a result of last year's treasury issue."

"All stations in the CanWest Global System significantly outpaced last year's revenue performance in the first six months of the year," said Gerry Noble, CanWest's Vice-President, Operations. "January was a strong sales month for the entire Canadian television industry, and CanWest Global System led the way with increases that exceeded the industry average." -0-

COMBINED FINANCIAL RESULTS (1)
(in thousands of Canadian dollars)

                 Six Months Ended          Three Months Ended
              Feb.28   Feb.29  Percent  Feb.28   Feb.29  Percent
               1997     1996    Change   1997     1996    Change
Revenue
 Canada       190,404  171,496   11.0    89,426   79,620    12.3
 Australia    171,179  123,798   38.3    79,387   56,210    41.2
 New Zealand   45,699   22,753  100.8    18,654   12,029    55.1
              -------  -------          -------  -------
              407,282  318,047   28.1   187,467  147,859    26.8
              -------  -------          -------  -------
Broadcast
 operating
 profit
 before
 amortization
   Canada      78,105   66,548   17.4    34,644   27,543    25.8
   Australia   59,959   44,348   35.2    22,755   16,452    38.3
   New Zealand 16,459    9,506   73.1     4,850    6,154   (21.2)
              -------  -------          -------  -------
              154,523  120,402   28.3    62,249   50,149    24.1

Corporate &
 development
 expenses       7,570    5,921  (27.9)    5,092      902  (464.5)

EBITDA        146,953  114,481   28.4    57,157   49,247    16.1

Earnings from
 continuing
 operations    80,838   56,990   41.8    27,398   25,799     6.2

Net earnings   80,838   57,947   39.5    27,398   25,799     6.2

Cash flow from
 continuing
 operations    99,515   73,686   35.1    38,606   34,241    12.7

Earnings per
 share from
 continuing
 operations (2)
   Basic        $0.55    $0.41   34.1     $0.19    $0.19       -
   Fully
    diluted     $0.54    $0.41   31.7     $0.18    $0.18       -
Cash flow per
 share (2)
   Basic        $0.67    $0.53   26.4     $0.26    $0.25     4.0
   Fully
    diluted     $0.66    $0.53   24.5     $0.26    $0.25     4.0


NOTE:  (1) Includes the Company's proportionate direct and
indirect interests in Network TEN.

(2) Per share results are affected by the three million (nine
million after stock split) share issue in June 1996.

RECENT EVENTS

The strong results from each of the Company's Canadian operations, Network TEN in Australia and TV3 in New Zealand were further enhanced by corporate development initiatives undertaken during the first six months of fiscal 1997.

Australia

In November 1996, the Company increased its economic stake in Network TEN to 66 percent. This was followed in January 1997 by a further increase in economic interest to approximately 76 percent.

The Australian Broadcasting Authority (ABA) issued a report in early April which concluded that the financing arrangements CanWest had entered into (which allowed the Company to increase its economic stake in TEN) resulted, in the ABA's view, in a breach of the foreign ownership restrictions of the Australian Broadcasting Services Act (BSA). The ABA did not object to CanWest having increased its economic position in Network TEN, rather, it concluded that the transactions might, or could, allow CanWest to assume a position of control over TEN. The ABA, in its assessment of the transactions, concluded that nothing done by CanWest was either willful or flagrant as CanWest had acted on the advice of senior Australian legal counsel who structured the transactions to ensure that they were in compliance with the BSA.

The ABA has notified CanWest that it must take action to remedy the alleged breach within six months. The Company intends to explore with the ABA mutually acceptable ways in which to rectify the alleged breach, and also will explore other legal means of redressing the matter.

Canada

The corporate development highlight of the second quarter came on February 27, 1997 when CanWest was awarded a licence to broadcast English-language television in the Canadian province of Quebec. Global Television (Quebec), to be launched in September 1997, will operate as a province wide broadcaster, serving approximately one million anglophone viewers in Quebec City, Montreal and Sherbrooke.

On March 4, 1997 CanWest acquired an additional 1,350,400 Class B non-voting shares WIC Western International Communications Ltd., bringing CanWest's total holding in WIC to more than 15 percent of that company's outstanding Class B non-voting shares, making CanWest the largest single shareholder of WIC.

New Zealand

On April 1, 1997, CanWest acquired 48 percent of TV3's shares and a fixed price option to acquire a further 2 percent of TV3's shares at nominal cost. CanWest now owns 68 percent of TV3's shares and options for the remaining 32 percent.

Plans for the launch of TV4, New Zealand's new national, free-to-air television network are progressing on schedule, with the launch anticipated in June 1997. Bettina Hollings, TV3's Associate Director of Programming, has been appointed General Manager of TV4. Bettina is the first woman to head a New Zealand television network.

Programming

The outstanding results parallel the Company's ongoing dedication, in each of its markets, to the production of the highest quality domestic programming. In Canada, CanWest's flagship drama series, Traders, recently captured three Gemini Awards, including Best Actor in a Drama (David Cubitt) and Best Actor in a Guest Role (Bruce Gardner). Other CanWest Global System programs to be honored with Geminis were Captive Heart : The James Mink Story and The Outer Limits. The Geminis are the pre-eminent awards in Canadian television. Network TEN recently launched its much-anticipated domestic drama, Big Sky, to both critical and viewer acclaim. It debuted in February to strong ratings, winning its timeslot among women age 40 and over. At TV3, production has commenced on two new domestic series: In The Deep End and Destination Planet Earth. Both programs, which have been greeted with strong early reviews, are expected to debut this month.

LOOKING FORWARD

The outlook for the second half of fiscal 1997 continues to be very positive, especially in Canada, where the third quarter is already off to an exceptional start, pacing well ahead of the comparable period a year ago.

"We expect continued strong performance from the CanWest Global System in Canada. When combined with increased contributions from Network TEN in Australia and TV3 in New Zealand, we expect earnings for the year to be significantly ahead of last year," said John Maguire, CanWest's Vice-President, Finance and CFO.

"The outstanding results for the first six months have put us in excellent shape for the balance of the year in Australia and New Zealand, where traditionally their Autumn and Winter months (our Spring and Summer) have been quite robust," he added. "We expect to see those advertising markets pick up somewhat over the balance of our fiscal year."

Looking toward fiscal 1998, the Company is well positioned for yet another strong year in each of its operating units. In Canada, it is expected that Global Quebec will make a positive contribution to the Company's EBITDA in its first year of operation. "That contribution should grow significantly in subsequent years as the new station matures in the Quebec marketplace," said Mr. Asper.

In New Zealand, TV4 will be fully operational in fiscal 1998 and, thanks to operational efficiencies and promotional value provided by TV3, it is expected that start-up losses at TV4 will not be significant. The new network should contribute positively to EBITDA within a year of its launch.

As well, in fiscal 1998 the Company will report a full year's impact of the additional economic stakes that it acquired in TV3 in fiscal 1997. We also hope to resolve our differences with the ABA regarding our increased economic stake in Network TEN in a way which is acceptable to both the Australian government and the Company.

CanWest Global Communications Corp. (NYSE - CWG; 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 most profitable 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.

BACKGROUND INFORMATION TO CANWEST GLOBAL'S SIX MONTH REPORT, 1997 RESULTS OF OPERATIONS

The following discussion focuses upon financial results that have been prepared on a combined basis and are reported in Canadian dollars.

"Under Canadian GAAP, we are required to equity account our economic interest in Network TEN," said John Maguire, Vice-President, Finance and CFO. "We believe that by providing our shareholders with full financial disclosure, on a supplementary basis, of Network TEN's results proportionately consolidated into our financial statements, we more clearly reflect the true magnitude of our Company's broadcast operations."

It is important to note that earnings and earnings per share on a combined basis are the same as earnings and earnings per share reported on a Canadian GAAP basis.

The results being reported today reflect strong internal growth at each of the Canadian operations, Network TEN in Australia and TV3 in New Zealand, and the increased economic interests in both Network TEN and TV3.

CONTACT: CanWest Global Communications Corp.

John E. Maguire, 204/956-2025

204/947-9841 (FAX)