By: E&P Staff Taking a big asset write down on its money-losing National Post, Canada's biggest media company, CanWest Global Communications Corp., Wednesday reported a loss of C$106 million (U.S.$89.9 million), or 60 Canadian cents per share, during its fourth-quarter ended Aug. 31.
The company reported a profit of C$62 million (U.S.$52.6 million), or 35 Canadian cents per share, in the same quarter of 2004. Revenues were up 5% in the quarter to C$702 million (U.S.$596 million).
CanWest said its losses included a C$51 million (U.S.$43.3 million) noncash write down of goodwill at the National Post, as well as a C$12 million (U.S.$10.2 million) charge related to the termination of its management agreement with Conrad Black's former holding company, Ravelston.
The biggest loss, CanWest said, came from C$109 million (U.S. 92.5 million) in losses related to interest rate and currency swaps, which were partly offset by C$47 million (U.S. $39.9 million) in gains in foreign currency exchange related to settlement of debt.
Winnipeg-based CanWest said fourth-quarter revenues from Canadian newspaper and online operations increased by 3% to C$290 million (U.S.$246 million). It said cash-flow fell 27% in the quarter to C$39 million (U.S.$33.1 million), chiefly because of start-up costs associated with new businesses, and increased payroll, and distribution costs.
For fiscal 2005, CanWest reported net earnings of C$10 million (U.S.$8.5 million), or 6 Canadian cents per share, compared to a loss of C$13 million (U.S.$11 million), or 8 Canadian cents per share, in fiscal 2004.
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