CW Media Holdings posts steep loss
Broadcaster hurt by weakened Canadian dollarTORONTO -- Despite higher ad and subscriber fee revenue, foreign exchange losses led Canadian cable channel broadcaster CW Media Holdings, which is partly owned by Goldman Sachs and Co., to post a steep first-quarter loss Tuesday.
Toronto-based CW Media, a subsidiary of domestic broadcaster CanWest Global Communications Corp., posted revenue of CAN$106.1 million ($86.2 million) for the three months ending Nov. 30, up 9.3% from a year-earlier CAN$97.1 million.
The cable channels, which include Food Network Canada, History Television and Showcase, saw ad sales rise 10.6% to CAN$66.7 million ($54.2 million), despite an industry-wide advertising slump.
But CW Media posted an overall first-quarter loss of CAN$53.3 million ($43.3 million) after recording foreign exchange losses of CAN$57.1 million ($46.3 million) related to the affect of the weakening Canadian dollar on unhedged U.S. denominated senior unsecured notes.
Last year, CanWest Global acquired control of the 13 cable channels that comprises CW Media Holdings from Alliance Atlantis Communications as part of a CAN$1.5 billion deal largely financed by Goldman Sachs and Co.