– CanWest financial plans

Two weeks after new foreign investment rules for broadcasting companies have kicked in, CanWest Global Communications is out with a plan to offer shares internationally, and will officially file with the Securities and Exchange Commission the week of April 22.

CanWest’s board of directors has announced plans for a capital reorganization, splitting its outstanding multiple voting and subordinate voting shares on a three-for-one basis and creating a new class of non-voting shares. The non-voting shares will be offered internationally.

The plan is subject to the approval of a minimum of 2/3 of the outstanding subordinate voting shares. A special shareholder meeting is scheduled for May 27.

The dividends from the new stock offering will be used to finance CanWest’s quest for new broadcasting services in Alberta and B.C., completing the national network vision. Capital investment is projected to push $100 million.

CanWest also announced a special stock dividend for shareholders of record as of April 26 in the form of almost 12 subordinate voting shares for each 100 held as of that date. Pay day is May 28.

The stock split announcement comes in the wake of a boffo second quarter for CanWest. For the first time the financial results of its 57.5% economic interest in Network Ten, Australia, are proportionately consolidated into the report which shows a 14% increase in revenue to $147.9 million, up $18.1 million, for the second quarter ending Feb. 29, 1996.

For the same period, operating profit is up 57.2% to $49.3 million from $31.3 million, raising CanWest’s six-month operating profit to $144.5 million, up 37% over the first six months of 1995.

CanWest’s Canadian television operations reported revenue of $171.5 million, up 10.5% from revenue of $155.2 million in the first six months of 1995. Operating profit from Canadian operations totaled $66.6 million for the first half of 1996, an increase of 35.6% over last year.

CanWest’s share of Network Ten’s revenue was $123.8 million, with its share of the operating profit running to $44.4 million, up 35.7% over last year. Its 50% share of the accounts of TV3, New Zealand, yielded revenue contribution of $22.8 million for the six-month period, up 10.2% over last year.

Without including Network Ten data, earnings per share for the first six months are up 28.7% to $1.39 from $1.08. Combined cash flow including the Australian network pull earnings per share up $28.8% to $1.79 from $1.39 in the first half of 1995.

– Cable Production Fund year-two update

Two weeks into its second year and the Cable Production Fund is off to a raucous start.

In week one, the cpf sifted through 96 applications requesting $22.8 million in funding, greenlighting a total of $9.8 million to 32 projects, 22 of them earmarked for $8.4 million from the French envelope, 10 tapping the English envelope. The balance of the remaining applications, 40 English and 24 French, were not complete.

By the end of a more sedate second week, a total of 108 applications had been received (57 English and 51 French) for a total request of $24.8 million. Thirteen English projects received $1.9 million in funding and 29 French projects received $9.9 million. As for funds remaining in each envelope, there’s $26.1 million left to be had for English programs and $4.1 million for French programs.

Projected year-two budget for the cpf is $42 million.

Also in cpf news, the crtc has officially amended the eight out of 10 Cancon criterion for treaty coproductions to be eligible for cpf monies.

As per the cpf’s request for the change filed with the commission in December, the Canadian point system has been replaced by a provision stipulating Canadian treaty coproductions in which 65% or more of the financing is by a Canadian company will now qualify for access to the fund.

In its decision, the crtc points out that the amendment will quicken the cpf’s evaluation process and facilitate a wider audience for Canadian coproductions, saying, ‘Greater access to audiences in other countries provided to Canadian treaty coproductions will broaden the international market for Canadian films and benefit the Canadian production industry as a whole.’

Taking note of concerns expressed in interventions from the cbc and the Writers Guild of Canada, the commission reminded the cpf board that eligibility for programs to receive funding places priority on identifiably Canadian programs. ‘Consequently, the commission will be concerned if a disproportionate amount of the fund is allocated to treaty coproductions.’

– Disney Channel in France

The Disney Channel – France is set to be carried on Astra, Canal+’s dth subscription service. Developed for families in France and broadcast in French, the service will offer both Disney programs and acquired French and European programs.

– Nelvana’s numbers

Nelvana’s consolidated results for 1995 are tallied, with the company posting gross revenue as $56,450,000, compared to $58,323,000 for 1994. Earnings before income taxes rose 33% to $8,127,000 from $6,120,000 in 1994. Earnings per share were $0.92 based on 5,181,108 shares outstanding, while earnings per share in 1994, based on a weighted average of 4,490,697 shares outstanding, were $1.39.

1995 saw the company recognize revenue on completion and delivery of 84 half-hours and 13 hours, consisting of eight series.

Production and distribution revenue increased 7% to $32,816,00 compared to $30,643,000 in 1994. Approximately 41%, or $13,430,000, of production and distribution revenue was attributable to exploitation of the company’s film and tv library programs.

The merchandising and licensing business incurred a loss of $250,000 in the year, which the company says is partly attributable to the absence of significant revenue from a master toy licence in 1995.