 |
|
Category Investors Date 4/12/2007 |
|
CanWest MediaWorks Income Fund Reports Second Quarter 2007 Results
|
|
TORONTO CanWest MediaWorks Income Fund announced today financial results for the second quarter of its 2007 fiscal year, which ended February 28, 2007.
Revenue for the second quarter was $278.0 million, down slightly compared to $279.5 million in the prior year. Interactive revenue increased 5% as compared to the prior year. Online classified revenue, which is reported within the Newspaper segment, increased 30% as compared to the prior year. Newspaper revenues were essentially flat with the prior year as declines in print classifieds revenue were largely offset by increases in insert, retail and circulation revenue.
EBITDA for the Limited Partnership was $56.2 million, representing an increase of 7% over $52.3 million reported in the same period in 2006. Growth in EBITDA is attributed to the continued positive impact of cost containment initiatives undertaken during fiscal 2006. Expenses decreased 2% as reduced severance payments and lower operating losses resulting from the closure of the print edition of Dose in May 2006 were offset by inflationary increases in payroll and higher distribution costs.
“Results for the quarter were reasonable within the current advertising market. Revenue growth in our online properties combined with the positive impact of expense reduction initiatives has resulted in EBITDA growth for the second quarter,” said Peter Viner, President and CEO of CanWest MediaWorks Income Fund.
Net earnings for the quarter were $39.8 million, an increase of 8% as compared to the prior year. The increase in net earnings primarily reflects the improvement in gross margins as a result of cost containment initiatives and reduced severance expenses.
Distributable cash for the quarter was $43.5 million or $0.20 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.
Six Months Ended February 28, 2007
For the six month period ending February 28, 2007, revenues totaled $594.4 million, an increase of 0.2% over the same period last year. The comparative period presented includes the combined consolidated financial results for the six months ended February 28, 2006, the first half of the fiscal 2006 year including the period from September 1, 2005 to October 12, 2005 which predated formation of the Fund.
Newspaper advertising revenue increased slightly over the same period in the prior year with growth focused primarily in national advertising, advertising inserts and online classified advertising offset by decreased print classified advertising. Interactive revenues have increased 7% over the prior year due to increased online advertising on the canada.com network.
EBITDA for the first six months of fiscal 2007 was $145.7 million, an increase of 8% compared to $134.6 million for the same period last year. EBITDA growth is attributed to modest revenue growth combined with significant expense reductions, down 2% as compared to the prior year as a result of cost reductions initiatives undertaken in fiscal 2006 and lower severance expenses.
“Our focus for the remainder of fiscal 2007 is to maintain positive momentum in year-over-year EBITDA growth. We expect challenges in the advertising market to continue and will focus on obtaining revenue growth from the expansion of national supplements and themed special sections,” said Peter Viner, President and CEO of CanWest MediaWorks Income Fund. Mr. Viner added that he remains cautiously optimistic about the outlook for the remainder of the fiscal year.
Net earnings for the same period were $100.3 million compared to $67.5 million for the same period last year. The increase in net earnings primarily reflects reduced interest expense following to the change in structure to a Limited Partnership in October 2005.
Distributable cash for the first half of the year was $120.8 million, or $0.57 per unit. This compares with $86.0 million, or $0.40 per unit, for the period from October 13, 2005 to February 28, 2006. Distributions declared for the first six months of F2007 were $0.46 per unit compared with $0.37 per unit for the period from October 13, 2005 to February 28, 2006. On a trailing 12 month basis, distributions totaled 88% 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, effective October 13, 2005, the Fund acquired an approximate 26% interest.
The financial statements released today include the presentation of combined consolidated financial performance of the Publications Group for the period from September 1, 2005 to October 12, 2005, the time pre-dating the formation of the Limited Partnership, and the consolidated financial results of the Limited Partnership for the period from October 13, 2005 to February 28, 2006. The comparative period for the six months ended of fiscal 2005 covers the combined consolidated financial results of the Publications Group.
Caution Concerning Forward-Looking Statements
This news release contains certain comments or forward-looking statements about the objectives, strategies, financial conditions, and results of operations and businesses of CanWest. 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 for the year ended August 31, 2006 dated November 29, 2006 filed by CanWest Global Communications Corp. with the Canadian securities commissions (available on SEDAR at www.sedar.com) and with the U.S. Securities and Exchange Commission under Form 40-F (available on EDGAR at www.sec.gov). 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 April 12, 2007 at 4:30 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 21223686 followed by the number sign.
About CanWest MediaWorks Income Fund
CanWest MediaWorks Income Fund (TSX: CWM.UN; www.cwmincomefund.com) is an unincorporated, open-ended trust that holds an approximate 26% 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, dose.ca, working.com, driving.ca and related websites.
CanWest MediaWorks Limited Partnership is 74% owned by CanWest Global Communications Corp. (www.canwestglobal.com), an international media company listed on the TSX (trading symbols: CGS and CGS.A) and NYSE (trading symbol: CWG), and Canada’s largest media company. CanWest is Canada’s largest publisher of daily newspapers, and owns, operates and/or holds substantial interests in free-to-air and subscription-based television networks, out-of-home advertising, web sites, and radio stations and networks in Canada, New Zealand, Australia, Singapore, Turkey, the United States and the United Kingdom.
- 30 -
For full details click here
For further information:
Deb Hutton
Senior Vice President, Corporate Communications
CanWest Global Communications Corp.
,
Doug Lamb
Executive Vice President and CFO
CanWest MediaWorks Limited Partnership
,
|
|
| Back to previous page |
|
 |
 |
 |
|
 Original Press Release Displaying Revenue Gains (120k) |
|
