Media company posts $34 million loss
WINNIPEG–CanWest Global Communications Corp.’s revenues rose 9 per cent in the second quarter, thanks to a large acquisition, but the bottom line fell below break-even as one-time charges added to the impact of "tepid" advertising sales and the strike by Hollywood writers.
The Winnipeg-based broadcasting and newspaper conglomerate suffered a net loss of $34 million, or 19 cents per share, in the fiscal second quarter ended Feb. 29, compared with profit of $7 million, or four cents, a year earlier, the company said yesterday. Revenue rose to $702 million from $644 million.
Analysts surveyed by Thomson Financial were on average expecting a loss of seven cents per share on revenue of $718 million.
Excluding long-term liabilities, foreign-currency items and restructuring costs, CanWest said, it earned $4 million, or two cents per share, compared with a break-even ex-items result a year earlier guaranteed payday loan.
"Overall results are good, with most of our business units performing well despite a tepid advertising market and in spite of the impact of the writers’ strike, which did affect, of course, our conventional television business," chief executive officer Leonard Asper said during a conference call with analysts.
"We maintain our focus of strong cost containment, as is evidenced by our operating profit margins, which improved year to date from 22 per cent in 2007 to 24 per cent in 2008."
CanWest’s revenue from publishing operations, including many of Canada’s big-city daily newspapers, edged up 1 per cent to $306 million.
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