Canwest Posts Q3 Loss

WINNIPEG, July 11: Despite a 15-percent rise in revenues to
C$851.8 million for the third quarter, Canwest Global Communications has posted
a loss of C$28.4 million, versus the C$8.4 million profit in the year-ago
period, as a result of a one-time impairment charge.

The company reported an operating income of C$177 million
and posted gains across its divisions. "These solid results demonstrate
that we continue to experience growth even in the face of a softening
market," said Leonard Asper, Canwest's president and CEO. "Given the
diversity and strength of our properties we believe that Canwest's stock is
undervalued. All major operations experienced profit growth in the quarter. Our
specialty channels continue to grow both in terms of popularity and revenue
generation and our publishing assets are also performing ahead of any other
similar assets in North America. We continue to focus on taking advantage of
our size and scope by generating increasing and identifiable audiences, from
which to monetize content, while rationalizing our cost structure, to deliver
better value to our shareholders."

Canadian television operations reported third-quarter
revenues of C$183 million, a slight gain on last year, with a 25-percent
increase in EBITDA to C$31 million. CW Media, constituting the channels
acquired from Alliance Atlantis, reported revenues of C$99 million, a
16-percent increase, with EBITDA that was 60 percent higher at C$60 million.
Canwest’s Australian operations, with Network TEN, delivered revenue of C$194
million, an 8-percent gain. TEN's EBITDA of C$35 million was up 21 percent.

—By Mansha Daswani