Accounts for TV3 operator MediaWorks for the year to the end of August included a $258 million writedown for the impairment of goodwill and $91.8 million in finance costs.MediaWorks' holding company, HT Media Holdings, reported an overall loss for the yea
Accounts for TV3 operator MediaWorks for the year to the end of August included a $258 million writedown for the impairment of goodwill and $91.8 million in finance costs.
MediaWorks' holding company, HT Media Holdings, reported an overall loss for the year of $314 million, compared to a loss the previous year of $40.3 million.
But the accounts, filed with the Companies Office at the end of April, said ebitda (earnings before interest, tax, depreciation and amortisation) was a better measure of the trading profitability of the group.
Ebitda for the year was $56.2 million, down from $66.6 million a year earlier, while group revenue fell 11% to $256 million.
The company, which owns TV3, C4 and a range of radio stations including The Rock, The Edge, RadioLive and More FM, was bought in 2007 by private equity firm Ironbridge, which said the acquisition of MediaWorks was effectively valued at $741 million.
The annual accounts said directors and management were reasonably pleased with the operating performance of the business units, in the context of an economy where most advertising sectors were down by 10-20 percent year-on-year.
A capital restructure had been necessary after the balance date period, because of the impact of economic conditions on trading performance, combined with the relatively high leveraged capital structure that was common under private equity ownership, the company said.
That restructure had involved the transfer of MediaWorks NZ shares, including the main operating subsidiaries TVWorks and RadioWorks, into a new corporate structure whose ultimate holding company was now GR Media Holdings.
Additional funding was invested in the parent company of the operational businesses by both the majority shareholder and several lenders.
Interest rate swaps were renegotiated, significantly lowering annual interest costs, and the bank covenant framework was updated.
The group reported a loss before impairment of $52.8 milliion for the year to August, with the directors highlighting the $8.6m of cash flow generated from operating activities, after the payment of cash interest.
