Canada's CanWest yet to decide on future of Australia/NZealand assets

Canada's CanWest yet to decide on future of Australia/NZealand assets

	Published : Wed, 10 Jan 2007 23:55 By : Agencies Print this Story

SYDNEY (XFN-ASIA) - Canadian media company CanWest Global Communications Corp said it has yet to make a decision on its strategy relating to its interests in Australia and New Zealand.

The group has a 56.5 pct economic interest in Australia's TEN Network Holdings Ltd as well New Zealand broadcasting assets.

Last month, TEN said its parent is looking to sell its stake following the passing of laws which will relax media ownership restrictions in Australia, including limits on foreign ownership when they come into effect this year.

Analysts believe the sale of the Australian and New Zealand assets could deliver 1.7-2.0 bln cad at a time when CanWest, along with Goldman Sachs, is seeking to buy Canadian specialty-TV group Alliance Atlantis Communications Inc, said to be worth as much as 2.2 bln cad.

The Canadian company last October appointed Citigroup Global Markets to advise it on strategy relating to its Australian and New Zealand assets

In its first quarter report for the three months to December, CanWest said the review remains an ongoing process.

It said a higher exchange rate for the Canadian dollar as well as challenging advertising markets continued to affect results in Australia in the the three months to December compared with the same quarter a year earlier although the trend line has improved compared to earlier quarters.

'At Network TEN although ratings continued to be very strong, revenues decreased by three pct from last year in local currency terms, a significant improvement from the revenue declines of the previous four quarters,' CanWest said.

In Canadian currency, revenues of 216 mln cad for the quarter were down by six pct from the previous first quarter.

CanWest said a 17 pct decline in EBITDA at TEN was attributable to higher investment in programming to sustain TEN's ratings leadership in its target 16-49 year old audience .

It said the CanWest's New Zealand broadcasting operations registered a two pct rise in revenue for the quarter in local currency terms from a year earlier.

But as a result of currency translation, first quarter revenue fell seven pct to 56 mln cad and EBITDA fell six pct to to 18 mln cad.

(1 usd = 1.17 cad)

bruce.hextall@xfn.com