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Category Investors Date 1/9/2007 |
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CanWest MediaWorks Income Fund Reports Q1 Revenue and Solid EBITDA Gains
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Toronto , Ontario - CanWest MediaWorks Income Fund (the "Fund") announced financial results for the three months ended November 30, 2006, the first quarter of its 2007 fiscal year.
Revenue for the Limited Partnership for the three months ended November 30, 2006 was $316.5 million, an increase of 1% over the $313.6 million reported for the first quarter of fiscal 2006. The comparative period presents the combined consolidated financial results for the three months ended November 30, 2005, the first quarter of the 2006 fiscal year including the period from September 1, 2005 to October 12, 2005 which predated formation of the Fund.
EBITDA, for the first quarter was $89.5 million, an increase of 9% compared to $82.3 million for the first quarter of fiscal 2005. Growth in EBITDA is attributable to a combination of revenue growth and the positive impact of cost containment measures implemented in F2006. Aggregate net earnings were $60.5 million in the first quarter compared to $30.7 million in the same quarter last year. The increase in net earnings reflected increased gross margins and lower interest expense.
Newspaper advertising revenue increased 1% for the quarter with growth focused primarily in national advertising and advertising inserts. Retail advertising revenue was down slightly. Growth in online classifieds offset a portion of the decline in print classifieds. On a combined basis print and online classified revenue declined 2%. Circulation revenue increased 2% relative to the prior year, with price increases more than offsetting a slight decline in number of copies sold. Interactive revenue increased by 8% compared to prior year due to increased revenues from online advertising on the canada.com network.
Commenting on the results, Peter Viner, President and Chief Executive Officer of the Limited Partnership said, “The first quarter marks a continuation of the improved margins that became evident in the fourth quarter of the last fiscal year. Given the challenging advertising markets we are pleased that most segments of our business reported revenue growth in the quarter, which compares favourably with others in the newspaper industry. Our priority in the coming period is to maintain the positive momentum in the year-over-year EBITDA growth experienced over the past two quarters, through continued focus on cost containment along with modest revenue growth.”
Distributable cash for quarter ended November 30, 2006 was $77.3 million or $0.36 per unit. Cash distributions for the quarter were $0.23 per unit. Due to the seasonal nature of newspaper advertising revenue, we expect distributable cash in the first and third quarters to exceed actual distributions and to be more than sufficient to offset anticipated shortfalls in the second and fourth quarters. On a trailing 12 month basis, distributions totaled 92% of distributable cash.
Basis of Presentation
The Publications Group, formerly owned by CanWest MediaWorks Inc., was acquired by CanWest MediaWorks Limited Partnership (the “Limited Partnership”), in which, the Fund acquired a 25.8% interest, effective October 13, 2005.
Caution Concerning Forward-Looking Statements
This news release contains certain comments or forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Fund. 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 dated November 29, 2006 filed by CanWest MediaWorks Income Fund with the Canadian securities commissions (available on SEDAR at www.sedar.com), and our most recent Management's Discussion and Analysis for the three months ended November 30, 2006, dated January 9, 2007. 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.
The company will hold its regular quarterly conference call with analysts on January 9, 2007 at 5:00 PM. Eastern Standard Time. The call-in numbers are or . Replays are also available for five days following the call at or using the pass-code 21211047#.
About CanWest MediaWorks Income Fund and CanWest MediaWorks Limited Partnership
CanWest MediaWorks Income Fund (TSX: CWM.UN; www.cwmincomefund.com) is an unincorporated, open-ended trust that holds a 25.8% equity interest in CanWest MediaWorks Limited Partnership, which is the largest publisher of newspapers in Canada, as measured by paid circulation, readership and revenue.
The assets within the Limited Partnership comprise ten major metropolitan daily newspapers serving nine Canadian cities; Vancouver Sun, The Province (Vancouver), Ottawa Citizen, The Gazette (Montreal), The Edmonton Journal, Calgary Herald, The Windsor Star, Times-Colonist (Victoria), Leader Post (Regina), Star Phoenix (Saskatoon), and a one-third interest in Metro Ottawa and Metro Vancouver, free commuter dailies, together with 23 smaller community daily, weekly and bi-weekly publications. The assets also include online properties canada.com, working.com, driving.ca and renting.ca and related websites.
CanWest MediaWorks Limited Partnership is 74.2% owned by CanWest Global Communications Corp. ( www.canwestglobal.com), ( TSX: CGS and CGS.A, NYSE: CWG). CanWest, an international media company, is Canada’s largest publisher of daily newspapers and also owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, Web sites and radio stations and networks in Canada, New Zealand, Australia, Singapore, Indonesia, Malaysia, Turkey, the United Kingdom and the United States.
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For full details click here
For additional information, please contact:
Doug Lamb, Executive Vice President and CFO
CanWest MediaWorks Limited Partnership
Tel:
Email:
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 Original Press Release Displaying Revenue Gains (150k) |
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