Canwest , the global communications group which owns 45 per cent of TV3, has reported higher earnings from its Irish interest in the three months to the end of November 2001.
According to figures for the first quarter of its financial year TV3 contributed operating profits of $3.98 million Canadian dollars (€2.42 million) to CanWest. The group refused to comment on the overall profitability of TV3 but given the reported figures, which represent its 45 per cent interest in the station, this could suggest the station made a total operating profit of €8.84 million in those three months.
The other TV3 shareholders include Granada Media, which also holds a 45 per cent stake, and three Irish founder investors, Mr James Morris of Windmill Lane Pictures; accountant Mr Osmond Kilkenny and U2 manager Mr Paul McGuinness. The station reported a net loss of €2.7 million for the 12 months to the end of August 2002 and says that it expects to break even this year.
TV3 is owned and operated through CanWest Granada Media Holdings Limited (CGMH), which said it does not publish its operating results. In a statement it said that Irish advertisers had continued to support the station and that the advertising spend had increased by 8 per cent in the last quarter. "TV3 exceeded the market average growth despite concerns over certain practices of RTÉ that we believe have distorted the market place," it said. The statement added that TV3 intended to lodge a complaint under competition law against the national broadcaster.
It also expressed grave concerns about the massive licence fee increase to RTÉ following recent discussions with the Government. It contends that this manner of funding perpetuates and exacerbates the preclusion of a meaningful private television sector based in Ireland and is essentially guaranteeing future dominance by UK-based private broadcasters.
"The current proposals made by RTÉ and accepted by the Government linked to the licence fee increase fail to improve the prospects for a meaningful increase in Irish-based television choice for Irish consumers" it said.
CanWest booked Can$10.1 million in revenues from the Irish television station during the three months, up from Can$8.5 million in the same quarter in 2001.
Overall the group recorded a 12 per cent increase in earnings for the three-month period to Can$219 million compared with Can$191 million in the same period in previous year. Revenues rose by 6 per cent to Can$740 million, up from Can$701 million. Commenting on the quarterly figures yesterday, CanWest president and chief executive officer, Mr Leonard Asper, said he was encouraged by the strength of the recovery in advertising markets first seen at its international operations and which is now evident at its Canadian television and newspaper operations.
