CanWest Profits Sink, Hit by Weak Economy and Acquisition Charges

15 November 2001

Canada-headquartered media group CanWest Global Communications revealed profits had tumbled from C$177.6 million to C$46.6m in its full fiscal year.

However, the group – owner of TV stations in Canada, New Zealand, Australia and Ireland, plus newspapers in Canada and radio operations in New Zealand – said revenues had doubled from C$1.1 billion to C$2.2bn, mostly due to the acquisition of newspaper group Southam last year.

The fall in profits was blamed on the weak economy and charges associated with recent acquisitions.

Operating profit was over $220m both at its Canadian TV and newspaper arms, almost the same as pro forma results twelve months earlier. However, its Network TEN unit in Australia saw operating income tumble over C$30m to nearly C$70m, while the group’s New Zealand TV interests booked an C$8.9m loss, compared with C$832,000 of profit last year.

Profits at its radio assets in New Zealand sank marginally to C$14.3m, but its TV3 station in Ireland turned an C$8.7m loss twelve months ago into a gain of C$2.7m.

News source: Financial Times