CanWest reports growth spurt at Network TEN
WINNIPEG - CanWest Global Communications reported today that Network TEN, its television and out-of-home advertising operation in Australia, recorded a 24% growth in EBITDA to A$42.5 million and a record 12% growth in group revenues to A$186.5 million for the third quarter ended May 31, 2003.
Television revenues for the quarter increased by 14% to A$168 million, generating EBITDA of A$41 million, a 21% improvement compared to the same quarter one year ago.
Eye Corp, TEN's out-of-home advertising business, reported EBITDA of A$1.5 million for the quarter, a continuation of the positive trend, and a reasonable performance given the difficult market conditions for this sector and the substantial restructuring of Eye Corp during the past year.
TEN's executive chairman, Nick Falloon, called the third quarter results "outstanding" and reflected the gains TEN has achieved in Australian television revenue share, as well as growth in the overall advertising market in Australia in April and May.
"TEN's revenue grew strongly across the three months, as it had in the first half of 2003. TEN has deserved a bigger slice of the advertising pie because of our ratings growth over the past two years, and clearly that is being achieved," he added. "TEN has the best margins in our sector, and this quarterly performance again highlights how we maintain our focus on costs while building revenue."
"TEN's increased revenue share, combined with a growing overall television advertising market, should contribute to further earnings growth in the fourth quarter and beyond," said Leonard Asper, CanWest's president and CEO. "TEN has clearly developed a winning programming strategy, with prudent investment in a combination of Australian sports, Formula One racing, Australian drama and popular imported programming that should enable the network to remain number one in its core 16-39 demographic for the third consecutive year."
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