Canwest Posts Significant Loss Following Write-Down

November 14, 2008 World Screen

WINNIPEG, November 14:
After a C$1.01 billion impairment charge on goodwill and broadcast licenses in
its Canadian conventional TV operations, Canwest Global Communications Corp.
posted a full-year loss of C$1.04 billion.

The company said the
write-down reflected "a deterioration in the near-term profit
expectations" for its conventional TV business in Canada, a result of a
downturn in the ad market as well as "structural and regulatory
challenges" facing the industry. This time last year, the company reported
a net profit of C$279 million. Consolidated revenues for the year were up 10
percent to C$3.1 billion.

The results come a day
after the company reported plans to eliminate more than 500 positions in a move
to cut costs.

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Announcing the results, Leonard Asper, the company's president and CEO, noted: "We have seen
impairment charges such as these in other large media companies throughout
North America. The sooner we recognize the new reality, the faster we can
recalibrate our business and move it forward."

He added: "We believe
investors should focus on the more important fundamentals of our business. Our
publishing operations and specialty channels continue to produce strong
operating profit and cash flows and continue to out-perform the industry. Our
digital media continues to produce strong growth overall and we continue to
transform our business by exacting better, more efficient, performance from our
core assets while investing in growth media in response to the evolving habits
and expectations of consumers, advertisers and distributors. Throughout 2008 we
have invested in products and programs that have the potential to have a
meaningful impact on our future and we have made significant progress in
aligning our expenses with the economic times in which we operate. Earlier this
week, we took steps to address the negative impact of current market conditions
while continuing to provide the quality products and services that our
customers expect."

—By Mansha Daswani