Canwest sets new standards for first quarter (Part 2 of 2 - Financial Tables).

WINNIPEG, Manitoba--(BUSINESS WIRE)--Jan. 16, 1997-- CANWEST GLOBAL COMMU (NYSE CWG, TSE CGS.S CGS.A )

ATTACHMENTS: Background Information and Financial Statements

BACKGROUND INFORMATION

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, CanWest's Vice-President, Finance and Chief Financial Officer. "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 reported results reflect strong internal growth at each of the Canadian operations, TV3 in New Zealand, and Network Ten in Australia, and an increase in the Company's economic interests in TV3 and Network Ten. On October 31, 1996, CanWest entered into an agreement to acquire Westpac's interest in TV3, effective April 1, 1997. Because payment of the purchase price due September 1997 has been established at a fixed amount and has been secured by a letter of credit, generally accepted accounting rules in Canada require consolidation of TV3 results from the date of the agreement, notwithstanding that the transaction will not be completed until April 1997. Consolidation of the TV3 results provides the opportunity for the Company to correct an historical two-month lag in the recording of the results of TV3. Historically, CanWest had recorded its share of TV3 results based upon TV3's reporting of its quarterly results. Accordingly, the first quarter results include the Company's share of TV3's results for an additional two months in fiscal 1997.

In November, CanWest financed the acquisition by an unrelated Australian company, of approximately 17 percent of the issued and outstanding ordinary shares of Network Ten (representing an approximate 8.5 percent economic interest in the network). This transaction effectively increased CanWest's economic interest in Network Ten to approximately 66 percent.

THREE MONTHS ENDED NOVEMBER 30, 1996

Combined revenue for the first quarter ended November 30, 1996 was $219,815,000 compared to $170,188,000 for the 3 months ended November 30, 1995. This represented a 29.2 percent gain, reflecting strong performance in all sectors of the Company's broadcast operations.

In Canada, CanWest Global System's revenue for the first quarter rose to $100,978,000, a 9.9 percent increase over the $91,876,000 reported last year. This revenue growth was attributable to CanWest's continued strong program schedule - and the continuation of its top rated positions in the major market areas of Southern Ontario and the Lower Mainland of British Columbia.

In Australia, Network Ten reported a significant gain in revenue for the first quarter. CanWest's share of Ten's revenue for the first three months of fiscal 1997 rose to $91,792,000, up 35.8 percent over the $67,588,000 reported last year. This increase reflects the contribution in 1996 of the Perth and Adelaide stations which were acquired on November 1, 1995 and, the increase in November 1996 of CanWest's share of Network Ten revenue to 66 percent. As well, improved audience share in target demographics contributed to revenue growth. On a same station basis, Network Ten revenues were approximately 9 percent ahead of last year. CanWest's share of Network Ten revenues will increase to 76 percent in the second quarter of fiscal 1997.

In New Zealand, CanWest's share of TV3's revenue was up an impressive 152.2 percent during the first quarter, rising to $27,045,000 compared to $10,724,000 reported during the same period a year ago. This increase reflects inclusion of CanWest's share of TV3 results for an additional two months in the current period, as well as full consolidation of TV3's results effective November 1, 1996. TV3 revenues on a comparable basis were $12,447,000, up 16.1 percent over last year, reflecting continuing growth in audience share.

Combined broadcast operating profit before amortization and corporate and development costs (broadcast operating profit) for the quarter ended November 30, 1996, rose 31.3 percent to $92,274,000 from the $70,253,000 recorded last year. Broadcast operating profit growth across each of the Company's three operations reflected the robust revenue increases described above, coupled with ongoing strict attention to operating cost control.

In Canada, broadcast operating profit totaled $43,461,000 for the first quarter, an 11.4 percent increase over last year's total of $39,005,000. This increase was directly related to strong revenue growth.

In Australia, CanWest's share of Network Ten's broadcast operating profit rose to $37,204,000 for the first three months, an increase of 33.4 percent over the 1995 total of $27,896,000. This increase reflects the addition of the Perth and Adelaide stations, the increase in our economic stake to 66 percent, and strong advertorial and program sales during this period.

In New Zealand, CanWest's share of TV3's broadcast operating profit was up significantly - 246.3 percent - at $11,609,000 for the first quarter of 1997. This compares with $3,352,000 in the prior year. In addition to the inclusion of TV3 revenue for an additional two months and full consolidation of TV3 from November 1, growth at TV3 reflected revenue gains combined with minimal increases in operating costs. On a basis comparable with that reported last year, TV3's broadcast operating profit was $4,542,000, up 35.5 percent.

Combined operating profit before amortization, but after corporate and development expenses (EBITDA), rose 37.7 percent to $89,796,000 during the first three months from $65,234,000 in 1996.

Earnings from continuing operations rose 71.3 percent to $53,440,000 in the first quarter from $31,191,000 in 1996. Excluding the impact of the additional two months in respect of TV3, earnings from continuing operations were $48,119,000 in the first quarter, an increase of 54.3 percent over last year. Cash flow from continuing operations rose 54.4 percent to $60,909,000 from $39,445,000 last year. Growth in cash flow reflects the increased profitability of the Company in fiscal 1997.

RESULTS DETERMINED IN ACCORDANCE WITH U.S. GAAP

Net earnings determined in accordance with U.S. GAAP were $47,383,000 for the first three months compared to $32,244,000 in fiscal 1996. Primary and fully diluted earnings per share from continuing operations were $0.32 in the first quarter of 1997 compared to $0.23 in 1996.

The following financial statements have been prepared on a combined basis to proportionately consolidate the company's 66.22 percent (57.5 percent to October 31, 1996) interest in Network Ten. These financial statements are supplementary information for shareholders, designed to provide more meaningful and fullsome dislosure of the company's operations. -0-

CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENT OF EARNINGS
(UNAUDITED)
(in thousands of Canadian dollars)


                                 For the three months ended
                                          November 30
                                       1996          1995
                                       $000          $000

Revenue                              219,815       170,188
Broadcast operating expenses         127,541        99,935
                                    --------      --------
Broadcast operating profit
 before amortization                  92,274        70,253
Corporate and development expenses     2,478         5,019
                                    --------      --------
Operating profit before amortization  89,796        65,234
Investment income                       (315)         (315)
Financing expenses                     2,308         6,833
Amortization of broadcast licences     3,069         2,164
Other amortization                     4,620         3,705
                                    --------      --------
                                      80,114        52,847
Provision for income taxes            29,449        21,015
                                    --------      --------

Earnings before the following         50,665        31,832
Minority interest                     (1,325)       (1,123)
Realization of cumulative
 translation adjustments               4,100             -
Interest in earnings of equity
 accounted affiliates                      -           482
                                    --------      --------
Earnings from continuing operations   53,440        31,191
Gain (Loss) from
 discontinued operations                   -           957
                                    --------      --------
Net earnings                          53,440        32,148
                                    --------      --------
                                    --------      --------

Earnings per share: (1) (2)

Earnings from continuing operations
    Basic                            $  0.36       $  0.23
    Fully diluted                    $  0.36       $  0.22

Net earnings
    Basic                            $  0.36       $  0.23
    Fully diluted                    $  0.36       $  0.23


Notes:
1.) Earnings and cash flow per share have been calculated on the
basis of the weighted average number of shares outstanding during
the three months of 147,808,697 (1995 - 138,034,410) .

2.) Per share amounts have been restated to reflect the effect of
the 12.267 percent stock dividend paid in May 1996, and the
three-for-one stock split in July 1996.


CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
(in thousands of Canadian dollars)

                                 For the three months ended
                                          November 30
                                       1996          1995
Cash generated (utilized) by           $000          $000


Operating Activities
  Earnings from continuing
   operations for the period         53,440        31,191
  Items not affecting cash            7,469         8,254
                                    --------      --------
                                     60,909        39,445
  Changes in non-cash
   operating accounts               (50,867)        6,640
  Discontinued operations                 0          (464)
                                    --------      --------
                                     10,042        45,621
                                    --------      --------

Investing Activities
  Proceeds from disposition of
   (Investments in) discontinued
    operations                        1,367         3,221
  Financing of investment in
   Network Ten                     (111,572)            0
  Acquisition and construction of
   broadcast facilities and licences   (446)      (69,759)
  Other                               8,051             0
                                   ---------      --------
                                   (102,600)      (66,538)
                                   ---------      --------

Financing activities
  Issuance of share capital              49            96
  Issuance (Repayment) of
   long term debt                    57,234        68,428
  Net change in bank loans
   and advances                      10,137        10,523
  Dividends paid                     (7,383)       (6,147)
                                    --------      --------
                                     60,037        72,900
                                    --------      --------

Net change in cash                  (32,521)       51,983

Cash - beginning of period          182,180        10,286
                                    --------      --------

Cash - end of period                149,659        62,269
                                   ---------      --------
                                   ---------      --------

Cash flow per share from
 continuing operations (1) (2)     $   0.41      $   0.29
   Basic                           $   0.41      $   0.28
   Fully diluted

Notes:
1.) Earnings and cash flow per share have been calculated on the
basis of the weighted average number of shares outstanding during
the three months of 147,808,697 (1995 - 138,034,410) .

2.) Per share amounts have been restated to reflect the effect of
the 12.267 perfect stock dividend paid in May 1996, and the
three-for-one stock split in July 1996.

CONTACT: CanWest Global Communications Corp

John E. Maguire, 204/ 956-2025

204/ 947-9841 (FAX)