Canwest
Canwest is Canada’s leading international media company. Representing a portfolio of world-class brands, the Company creates and distributes some of the most compelling and dynamic content across multiple media platforms.
In Canada, the company’s diversified holdings include conventional television networks Global Television and E!, which reach almost 100% of English-speaking Canadians. The broadcast brands are complemented by 26 specialty networks capturing a 30.1% share of commercial specialty network viewers in Canada.
Canwest operates one of Canada’s largest newspaper chains reaching 4.9 million engaged readers on a weekly basis. The publications are complemented by several online properties under the canada.com network which averages over 4.5 million unique visitors per month. The canada.com network also features the entertainment site Dose.ca and in-depth vertical sites such as the popular driving.ca and working.com.
In Australia, Canwest is indirectly (through a wholly owned subsidiary) the majority and controlling shareholder of the TEN Television Network and Eye Corp. Network Ten (TEN) is a national network of wholly owned commercial television stations in five key Australian markets. Eye Corp is one of Australia’s largest Out-of-Home media operators with businesses in Australia, New Zealand, Asia, Europe and North America.
Canwest’s international assets also include several radio stations in Turkey. Canwest has full interest in The New Republic magazine, a 93 year-old US-based political magazine that offers intelligent, stimulating and rigorous examination of American politics, foreign policy and culture.
Fact Sheet
| Business: | Canwest Global Communications Corp. (TSX: CGS and CGS.A, www.canwest.com) is an international media company. In addition to owning Global Television and E!, reaching almost 100% of consumers across Canada, Canwest owns, operates, and/or holds substantial interests in Canada’s largest publisher of paid English-language daily newspapers, as well as conventional television networks, out of home advertising, specialty cable channels, web sites and radio stations and networks in Canada, Australia, Turkey, Indonesia, Singapore, and the United States.
Operating income (EBITDA) for fiscal 2007 was $487 million with consolidated revenues of just over $2.86 billion. |
| Head office: | The company was founded and headquartered in Winnipeg, Manitoba, Canada.
3100 CanWest Global Place Tel. 204-956-2025 |
| Number of Employees: | Approx: 10,700 |
| Investor Information: | Canwest Global Communications Corp. is listed on the Toronto Stock Exchange (TSX) under the trading symbols CGS and CGS.A
Registrars and Transfer Agents Auditors |
| In the Community: | Canwest is designated “A Caring Company” by the Canadian Centre for Philanthropy. Canwest appropriates a minimum if 1% of pre-tax profits for cash donations to nonprofit organizations and projects that strengthen and enhance local communities.
In fiscal year 2007, Canwest and its operating units donated $68.2 million (cash and in-kind) across Canada and internationally. |
| Canadian Operations: | Canwest is one the largest single employers of journalists in Canada with approximately 7,000 staff and freelance contributors to our newspapers, television operations and online destinations. CanWest journalists reach more Canadians on a daily basis than any other media organization.
Canwest Publishing Inc. is one of Canada’s largest newspaper publishers reaching 4.9 million engaged readers on a weekly basis. Publications includes: • The National Post In addition to the daily newspapers, the company also publishes over 25 community papers, three commuter papers, and local search directories and operates three flyer distribution companies. Complimenting the print publications are several online properties under the canada.com network, which averages over 4.5 million unique visitors per month. The canada.com network also features the entertainment site Dose.ca and in-depth vertical sites such as the popular driving.ca and working.com. FP DataGroup provides businesses with electronic access to a comprehensive source of corporate and industry data and information going back over 20 years. Canwest’s two English conventional networks, Global and E!, reach almost 100% of consumers across Canada. The Gemini Award winning Global National with Kevin Newman is Canada’s most-watched weekday national news. The addition of Alliance Atlantis’ specialty channels brings the total number of specialty channels Canwest owns, in whole or in part, to 26. The combined specialty channels represent a 30.1% share of commercial specialty channel viewership. In the 25 to 54 age demographic, the Company owns 4 of the top 10 analog specialty channels and 9 of the top 10 digital specialty channels. |
| Australian Operations: | Indirectly, through a wholly owned subsidiary, Canwest is the majority and controlling shareholder of Ten Network Holdings Ltd., parent company the Ten Television Network and Eye.
Ten Television Network is a free-to-air television network with stations in five mainland capital cities aimed at viewers aged 18-49. Eye is Australia’s leading Out-of-Home media supplier with contracts and inventory in Australia, New Zealand, Indonesia, Malaysia, Singapore, the United Kingdom, and North America. |
| Turkey: | In September, 2005, Canwest and its Turkish partner, Turkcom Iletisim Hizmetleri A.S. (Turkcom) began the acquisition of several media properties during an auction conducted by The Turkish Savings and Deposit Insurance Fund. In February, 2006, Canwest and its Turkish partners completed the acquisition bringing a total of four FM radio operations; Super FM, Metro FM, Joy FM and Joy Turk FM, into the Canwest asset group. |
| The United States: | In February 2006 Canwest Global Communications Corp. acquired 100% interest in the U.S. political magazine The New Republic. The magazine was started in 1914 and has had many literary luminaries such as George Orwell, Virginia Wolfe, Philip Roth and Camille Paglia, as contributors. |
Canwest Time Line
1970’s
The Canwest Global story began in the early 1970’s when I.H. Asper - a prominent Canadian tax and corporate lawyer, author, businessman and former political leader, founded the Canwest Capital Corporation (the forerunner to today’s company) and responded to a call for applications for a new television station in Winnipeg, Manitoba.
In 1974 the Canadian Radio-Television and Telecommunications Commission (CRTC) approved the Company’s license application and a year later the independent station CKND-TV signed on, becoming Winnipeg’s third over-the-air television service.
With the first “building block” in place, the Company’s attention soon turned towards Toronto, where the newly licensed Global television was in financial difficulty. Global was providing programming for Canwest’s new Winnipeg station, so the Company had a significant interest in Global’s survival. Mr. Asper led an emergency rescue operation to save the near-bankrupt Global and, through sound management and solid operating strategies, it soon became a financial success.
1980’s
Throughout the 1980s, Canwest added a Vancouver station and secured new licenses for start-ups in Regina and Saskatoon. In the following years the cross-country expansion continued with the acquisition of a station in Halifax/Saint John and, in 1997, the addition of a Quebec station. By 1989, Canwest had acquired 100% of Global.
1990’s
In 1991, Canwest issued a successful initial public offering on the Toronto Stock Exchange. The Company then turned its focus to international opportunities. Canwest had made its initial foray into European television in September 1998 with the launch of TV3 in the Republic of Ireland and the securing of a 29.9% stake in Ulster Television in Northern Ireland. In 1991 the Company acquired an initial investment in TV3 New Zealand and a year later purchased a stake in Australia’s Network TEN. This was followed by an increased investment in TV3 New Zealand to 100% and the launch of TV4 New Zealand.
In June 1996, Canwest demonstrated its success and growth with the listing of its shares on the New York Stock Exchange.
The Company entered the radio business in June 1997 with the purchase of More FM, New Zealand’s top-rated commercial radio network that operates stations in each of the country’s major urban markets. In October 1997, Canwest made its initial foray into the world of specialty cable with the launch of Prime TV in Canada.
2000
Canwest Radio increased its foothold in New Zealand in May 2000, with a 70% investment in RadioWorks NZ, the second largest radio group on the. In January 2001 Canwest Radio increased its holdings in RadioWorks to 100%.
In July 2000, the Global Television System - which began in 1974 with the launch of CKND Winnipeg, and slowly expanded east and west - was completed with CRTC approval of Canwest’s purchase of the conventional television assets of WIC Western International Communications. The addition of three Alberta stations completed a new national Global Television Network stretching from Halifax to Vancouver. Under the terms of the deal with WIC, Canwest also acquired stations in Hamilton, Victoria, and Montreal, which have been relaunched under the CH Brand. Canwest also owns the CBC affiliates CHBC Kelowna and CKRD Red Deer.
In October 2000, Canwest entered the out-of-home advertising business when Network TEN acquired a 60% interest in Eye Corp., Australia’s second largest out-of-home advertising company. In August of 2002 Network TEN purchased the remaining interest in Eye Corp. Eye Corp has built one of the largest networks of outdoor signage, airport advertising, visual merchandising, and shopping centre advertising in that country. The investment in Eye Corp extends the market reach of Network Ten and Canwest into South East Asia, including Malaysia and Indonesia.
Also in 2000, Canwest entered the newspaper business with the acquisition from Hollinger Inc. of daily and weekly newspapers across Canada, as well as the national paper the National Post, and the Internet sites canada.com, plus newspaper Internet portals. Canwest owns 11 major metro daily papers across Canada, as well as 20 paid or free weeklies in smaller communities across the country.
2001
Canwest increased its specialty channel portfolio in fall 2001 with the launch of six new digital channels housed at a broadcast facility in Winnipeg. Prime TV’s operations have also moved to this Winnipeg playout centre. The Company further expanded its Winnipeg operations with the creation of a Shared Services Unit, located in the city’s downtown, to provide certain functions for Canwest’s print, television and interactive operations across the country. The Shared Services Units consist of a Customer Contact Centre that serves the circulation requirements of its newspaper operations; a Business Services Centre that provides payroll and accounts payable functions for Canwest’s television, newspaper and interactive operations; and an information technology and data group to manage IT systems across the company. Canwest has also made its first foray into the Canadian radio market when it won a license for a new jazz station in Winnipeg.
2003
Canwest establishes Canwest News Service and a national news centre in Winnipeg to provide national and international news to its newspapers and television operations in Canada.
The Company won a second license for a new Top 40 hit radio station in Kitchener, Ontario. The Beat 91.5 serving the Kitchener/Tri-City region went on air early 2004.
2004
In October 2004, Canwest launched the Canwest MediaWorks brand to unify and represent all its Canadian operations. With the strongest portfolio of media assets in Canada, the new brand symbolized the integrated approach the Company was taking to delivering content to consumers across multiple platforms, as well as the opportunity for advertisers to leverage this strong portfolio.
In 2004, Canwest MediaWorks’ interactive division announces the launch of working.com, Canada’s fastest growing job site. Over the next 12 months, the company also launched or expanded their online classified sites as part of the canada.com network, including driving.ca and connecting.com, remembering.com.
2005
In September 2005 Canwest became the first foreign non-European media company to be awarded an FM broadcast license in the United Kingdom. Original 106fm serving the Solent region of the U.K. officially went on air October 1st 2006.
In October 2005, the Company completed a successful IPO of the Canwest MediaWorks Income Fund, and in Canada, the company reorganized into 3 main legal entities under the Canwest MediaWorks brand; Canwest MediaWorks Inc., which is comprised of Television and Radio, the National Post and Sales and Marketing; Canwest MediaWorks Publications Inc., which is comprised of the newspapers and interactive properties; and; Canwest MediaWorks Limited Partnership, which is comprised of the various corporate services that supports its businesses.
2006
Canwest completes its investment in four Turkish radio stations, Super FM, Metro FM, Joy FM, Joy Turk FM. The investment allowed Canwest to tap into Turkey’s growing economy and its rapidly expanding advertising market.
In August 2006, the Company completed the sale of its interest in TV3 Ireland. TV3 is a profitable operation which Canwest had launched and nurtured for almost a decade.
Canwest is awarded a second radio license for the UK in September 2006. Original 106fm Bristol was launched and commenced broadcasting the following year in May 2007.
In October 2006, Canwest announces the sale of its radio stations in Winnipeg (99.1 Cool FM) and Kitchener (The Beat 91.5) to Corus Entertainment. The transaction was completed in July 2007.
2007 - Present
In January 2007, Canwest Global Communications Corp in partnership with Goldman, Sachs and Co. entered into an agreement to acquire Alliance Atlantis Communications Inc. Alliance Atlantis is Canada’s premier owner and operator of 13 specialty branded television channels. The company also co-produces and distributes the hit show CSI and has a motion picture distribution operation. The deal, which was approved by Alliance Atlantis’ shareholders in April, would see Canwest be the controlling shareholder of Alliance Atlantis’ specialty television business while controlling interest in Motion Picture Distribution and financial interest in the CSI franchise would go to Goldman, Sachs and Co. The deal was closed in August 2007; the transaction, however, is still pending final CRTC approval.
In February 2007, Canwest Global Communication Corp, through a wholly owned subsidiary, acquired 100% interest in The New Republic-a venerable 93 year-old US based political magazine.
Canwest News Service (CNS) expands its operations in February to become Canada’s leading news organization. The operation is headquartered in Ottawa and opens new bureaus in Canada and abroad. By year’s end CNS will have international bureaus in Washington, New York, Paris, Jerusalem and Shanghai.
In May 2007, Canwest MediaWorks Inc. entered into a privatization agreement with Canwest MediaWorks Income Fund and Canwest MediaWorks Limited Partnership.
In June 2007, Canwest completes the sale of its interest in Canwest MediaWorks (NZ) Ltd.
Canwest enters the local search industry with the launch of the GO!Local Ottawa directory in both print and online editions. Plans to launch similar directories in Regina and Saskatoon for early 2008 are also announced.
Canwest, through a wholly owned subsidiary, completes a share exchange transaction to become the majority and controlling shareholder of Ten Network Holdings Limited, the parent company of Australia’s Network 10 television stations and Out-of-home advertising company, Eye Corp.
In September, the E! network is launches in Canada broadcasting to the major markets of Vancouver, Calgary, Edmonton, Toronto and Montreal through the former CH network. The E! network’s high-profile primetime entertainment programming is accompanied by local news and programming branded under each station’s heritage call-letters.
In October, Original 106fm Aberdeen goes on-air after Canwest was awarded its third radio license in the UK earlier in January.