EXHIBIT 2 (CANWEST GLOBAL COMMUNICATIONS CORP. LOGO) NEWS RELEASE For Immediate Release April 21, 2004 CANWEST REPORTS SECOND QUARTER RESULTS FOR F2004 Strong growth posted in Canadian publications and South Pacific groups WINNIPEG: CanWest Global Communications Corp. today reported its financial results for the three months ended February 29, 2004, the second quarter of its 2004 fiscal year. Consolidated revenues for the three month period ended February 29, 2004 were $494 million compared to consolidated revenues of $501 million for the same period in the previous year. On a pro forma basis, consolidated revenues were $484 million for the second quarter of fiscal 2003. On a combined basis, including the Company's 56.6% proportional share of Network TEN, combined revenues of $586 million for the quarter were 2% higher than revenues on the same basis for the same quarter last year. Compared to last year on a pro forma basis, combined revenues increased by 5% from $556 million, reflecting strong results in Canadian publishing and all of the Company's South Pacific operations. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter of fiscal 2004 were $53 million, after recording a $39 million non-cash charge related to the impairment in the value of Fireworks' Canadian film and television library. Excluding this charge, consolidated EBITDA in the second quarter of fiscal 2004 was $92 million compared to $98 million reported last year. On a pro forma basis, consolidated EBITDA last year was $95 million. On a combined basis, and excluding one-time charges related to Fireworks, EBITDA of $121 million this quarter increased 6% compared to EBITDA of $114 million on a pro forma basis last year. Results for fiscal 2003 have been restated on a pro forma basis to exclude the revenue and EBITDA contributions of certain newspaper assets in Ontario that were sold on February 14, 2003. Commenting on the results, Leonard Asper, CanWest's President and Chief Executive Officer, said, "Results for the second quarter demonstrate the value of CanWest's diversification strategy and particularly our holdings in Australia and New Zealand broadcasting assets, which offset the disappointing results from Canadian conventional television. Our Canadian newspaper assets also recorded significant revenue and EBITDA gains compared to last year. The positive trends of our international operations and at our Canadian newspapers operations should continue through the balance of fiscal 2004, and we remain hopeful that the improving economy will increasingly be evident in our Canadian television results as the year progresses." Overall, continued strong performances at all of the Company's South Pacific broadcasting operations, together with steady year-over-year gains in Canadian newspaper operations, were offset by reductions in revenue and EBITDA from Canadian broadcasting that reflected an overall market weakness in that sector. Canadian publishing revenues were $275 million for the quarter, up 5% from pro forma revenues of $263 million for the corresponding period last year. EBITDA for the quarter increased by 14% to $57 million from the pro forma result of $50 million for the second quarter of fiscal 2003. The Company's international operations continued to register significant gains. CanWest's 56.6% interest in TEN's EBITDA increased by 50% to $28 million for the quarter, compared to $19 million in the same period last year. Australian Rules Football as well as popular US and Australian sitcoms, drama and news programming helped to move TEN into a tie for second place in the 25-54 age demographic, while retaining its traditional strong position in its core 16-39 demographic. Eye Corp, TEN's out-of-home advertising division, registered a 24% increase in revenues to $10 million for the second quarter, generating EBITDA of over $1 million, an EBITDA gain of almost 200% compared to the same quarter last year. The Company's 3 and C4 Television Networks in New Zealand reported EBITDA of $3 million compared to a small loss for the second quarter of fiscal 2003. New Zealand radio operations registered a 47% increase in EBITDA to $8 million compared to $5 million for the second quarter of fiscal 2003. CanWest's 45% interest in TV3 Ireland's EBITDA was $2 million for the quarter, 12% higher than for the same period last year. The revenue trend experienced in Canadian broadcasting in the first quarter continued through December and January, with an improvement over last year reported in February. This resulted in Canadian broadcast revenues for the quarter of $161 million this year, down 6% from the $171 million recorded for the same period last year. EBITDA from Canadian broadcast operations was $30 million, compared to $42 million for the same quarter in the prior period. As recently announced, the Company has made the decision to dispose of Fireworks, and Fireworks has commenced a process to sell its library of international film and television program rights. Accordingly, the results of this operation have been classified as discontinued operations. The loss from discontinued operations for the quarter was $170 million, including $143 million in non-cash charges to adjust the carrying value of discontinued operations to their estimated fair value. The loss from the same operations in the same period last year was $4 million. In addition, there were non-cash charges of $39 million to adjust the value of Fireworks' library of Canadian film and television program rights to their estimated fair value. It is Fireworks' current intention to sell these rights as well, and commencing in the third quarter, these amounts will be included in the loss from discontinued operations. The Company's net loss for the quarter was $211 million or $1.19 per share compared to net earnings of $10 million or $0.01 per share for the second quarter of fiscal 2003. Excluding the loss from discontinued operations and other non-cash charges described above, the net loss in the current period would have been $2 million. Net earnings on the same basis last year would have been $13 million, including a gain of $21 million on the sale of the Ontario smaller market newspapers. 2 Mr. Asper added, "While we are disappointed with the outcome at Fireworks, this decision should be viewed as a positive step in conserving capital, and one which should contribute to improving the Company's free cash flow and debt reduction ability." "The Company continues to look at growth and expansion opportunities in Canada and elsewhere but, as before, our main priorities are to accelerate the reduction of corporate debt, improve operating margins and increase profits," Asper concluded. SIX MONTHS ENDED FEBRUARY 29, 2004 For the six month period ended February 29, 2004, the Company recorded consolidated revenues of $1,057 million compared to pro forma consolidated revenues of $1,054 million for the first six months of the prior year. Combined revenues in the current year of $1,282 million increased 4% over pro forma combined revenues of $1,232 million for the first six months of the previous year. Excluding the one-time, non-cash charges related to Fireworks, consolidated EBITDA for the first six months of fiscal 2004 was $246 million compared to $274 million last year. On a combined basis and excluding the Fireworks charges, EBITDA was $331 million, 3% ahead of the pro forma combined result of $321 million last year. For the six-month period ended February 29, 2004, the Company recorded a net loss of $130 million or $0.73 per share. Excluding all charges related to Fireworks, earnings in the current period would have been $82 million or $0.46 per share, compared to $82 million or $0.42 per share last year. OPERATING HIGHLIGHTS AND COMMENTARY Highlights for the quarter and the period since November 30, 2003 include the following: - - At its meeting on April 21, the Company's Board of Directors appointed The Honourable Frank McKenna, P.C. Q.C. to the position of Chairman of the Board of the Company. Mr. McKenna was previously serving as Interim Chairman since the passing on October 7, 2003 of the Company's founder, I. H. Asper, O.C., O.M., Q.C. - - The Company continues to roll out Web-based electronic editions of our newspapers with subscriptions now available at the National Post, Ottawa Citizen, Vancouver Sun and The Province, the Calgary Herald, Edmonton Journal and the Gazette in Montreal. We expect to roll out electronic editions at our remaining large city newspapers by the end of June 2004. Initial interest in electronic editions has been very encouraging, with significant numbers of new subscribers being readers who did not previously subscribe to the newspapers. - - Our Canadian television program schedule continued to strengthen, with excellent ratings and several outstanding new programs including The Apprentice and Average Joe, as well as continuing solid performers such as Fear Factor and Survivor. Global continued to attract the highest ratings and market share in the Greater Vancouver market with 7 of the top ten shows while CanWest stations garnered 5 of the top ten shows in the Greater Toronto market. Many of Global's top shows will be returning to its schedule next fall. 3 - - In December, Network TEN, secured a new five-year A$700 million syndicated loan facility on favourable terms, that will help to reduce TEN's financing costs. In January, the Company received $100 million (A$103.5 million) in previously announced distributions of interest and dividends. - - Subscribers for the Company's specialty cable networks continue to grow, with Prime's subscriber base now topping 5 million. This news release contains comments or forward-looking statements that are based largely on the Company's current expectations and are subject to certain risks, trends and uncertainties. These factors could cause actual future performance to vary materially from current expectations. The Company may not update or revise any forward-looking statements or comments, whether as a result of new information, future events or otherwise. The Company's financial statements are available on the corporate website, www.canwestglobal.com. CanWest Global Communications Corp. (NYSE: CWG; TSX: CGS.S and CGS.A, www.canwestglobal.com) is an international media company. CanWest, Canada's largest publisher of daily newspapers, owns, operates and/or holds substantial interests in newspapers, conventional television, out-of-home advertising, specialty cable channels, Web sites and radio networks in Canada, New Zealand, Australia, Ireland and the United Kingdom. For more information, please contact: Geoffrey Elliot John Maguire Vice President, Corporate Affairs Chief Financial Officer Ph: (204) 956-2025 Ph: (204) 956-2025 Fax: (204) 947-9841 Fax: (204) 947-9841 gelliot@canwest.com jmaguire@canwest.com (30) 4 CANWEST GLOBAL COMMUNICATIONS CORP. (1) BUSINESS SEGMENT INFORMATION (UNAUDITED) (IN THOUSANDS OF CANADIAN DOLLARS) FOR THE THREE MONTHS ENDED ----------------------------------------- FEBRUARY 29, FEBRUARY 28, FEBRUARY 28, 2004 2003 2003 ACTUAL ACTUAL PROFORMA (2) REVENUE TELEVISION Canada 161,217 171,320 171,320 Australia - Network TEN 81,676 63,703 63,703 New Zealand - 3 and C4 21,817 19,242 19,242 Ireland - TV3 7,759 7,863 7,863 -------- -------- -------- 272,469 262,128 262,128 RADIO - NEW ZEALAND 23,108 19,165 19,165 PUBLICATIONS AND ONLINE - CANADA 275,029 279,541 262,813 ENTERTAINMENT - CANADA 7,098 4,731 4,731 OUTDOOR - AUSTRALIA 10,231 8,256 8,256 Inter-segment revenue (1,872) (1,070) (1,070) -------- -------- -------- TOTAL COMBINED REVENUE(1) 586,063 572,751 556,023 Elimination of equity accounted affiliates(3) (91,907) (71,959) (71,959) -------- -------- -------- TOTAL CONSOLIDATED REVENUE 494,156 500,792 484,064 ======== ======== ======== OPERATING PROFIT TELEVISION Canada 29,958 42,492 42,492 Australia - Network TEN 28,222 18,877 18,877 New Zealand - 3 and C4 3,052 (270) (270) Ireland - TV3 2,162 1,928 1,928 -------- -------- -------- 63,394 63,027 63,027 RADIO - NEW ZEALAND 7,930 5,393 5,393 PUBLICATIONS AND ONLINE - CANADA 56,573 52,959 49,779 ENTERTAINMENT - CANADA 359 834 834 OUTDOOR - AUSTRALIA 1,280 460 460 -------- -------- -------- SEGMENT OPERATING PROFIT 129,536 122,673 119,493 Corporate expenses 8,224 5,582 5,582 Film and television program impairment expense 38,790 -- -- -------- -------- -------- COMBINED OPERATING PROFIT (EBITDA)(1) 82,522 117,091 113,911 Elimination of equity accounted affiliates(3) (29,502) (19,337) (19,337) -------- -------- -------- CONSOLIDATED OPERATING PROFIT (EBITDA) 53,020 97,754 94,574 ======== ======== ======== (1) Segmented results include the Company's 56.6% economic interest in Network TEN. (2) Proforma results exclude the results of community newspapers sold February 14, 2003. (3) Elimination of proportionate interest in Australia's Network TEN and Outdoor, which are equity accounted in the consolidated financial statements. 5 CANWEST GLOBAL COMMUNICATIONS CORP. (1) BUSINESS SEGMENT INFORMATION (UNAUDITED) (IN THOUSANDS OF CANADIAN DOLLARS) FOR THE SIX MONTHS ENDED --------------------------------------------- FEBRUARY 29, FEBRUARY 28, FEBRUARY 28, 2004 2003 2003 ACTUAL ACTUAL PROFORMA (2) REVENUE TELEVISION Canada 352,674 385,826 385,826 Australia - Network TEN 203,063 159,942 159,942 New Zealand - 3 and C4 52,680 45,453 45,453 Ireland - TV3 17,619 17,964 17,964 ---------- ---------- ---------- 626,036 609,185 609,185 RADIO - NEW ZEALAND 44,466 37,010 37,010 PUBLICATIONS AND ONLINE - CANADA 578,487 598,287 558,331 ENTERTAINMENT - CANADA 15,089 12,174 12,174 OUTDOOR - AUSTRALIA 21,455 18,463 18,463 Inter-segment revenue (3,710) (2,960) (2,960) ---------- ---------- ---------- TOTAL COMBINED REVENUE(1) 1,281,823 1,272,159 1,232,203 Elimination of equity accounted affiliates(3) (224,518) (178,405) (178,405) ---------- ---------- ---------- TOTAL CONSOLIDATED REVENUE 1,057,305 1,093,754 1,053,798 ========== ========== ========== OPERATING PROFIT TELEVISION Canada 86,128 123,889 123,889 Australia - Network TEN 80,862 55,902 55,902 New Zealand - 3 and C4 12,913 6,973 6,973 Ireland - TV3 5,886 5,915 5,915 ---------- ---------- ---------- 185,789 192,679 192,679 RADIO - NEW ZEALAND 15,017 10,747 10,747 PUBLICATIONS AND ONLINE - CANADA 139,726 134,753 124,648 ENTERTAINMENT - CANADA 1,094 1,724 1,724 OUTDOOR - AUSTRALIA 3,769 1,329 1,329 ---------- ---------- ---------- SEGMENT OPERATING PROFIT 345,395 341,232 331,127 Corporate expenses 14,537 10,469 10,469 Film and television program impairment expense 38,790 -- -- ---------- ---------- ---------- COMBINED OPERATING PROFIT (EBITDA)(1) 292,068 330,763 320,658 Elimination of equity accounted affiliates(3) (84,631) (57,231) (57,231) ---------- ---------- ---------- CONSOLIDATED OPERATING PROFIT (EBITDA) 207,437 273,532 263,427 ========== ========== ========== (1) Segmented results include the Company's 56.6% economic interest in Network TEN. (2) Proforma results exclude the results of community newspapers sold February 14, 2003. (3) Elimination of proportionate interest in Australia's Network TEN and Outdoor, which are equity accounted in the consolidated financial statements. 6 CANWEST GLOBAL COMMUNICATIONS CORP. CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (IN THOUSANDS OF CANADIAN DOLLARS EXCEPT AS OTHERWISE NOTED) FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED ----------------------------- ---------------------------- FEBRUARY 29, FEBRUARY 28, FEBRUARY 29, FEBRUARY 28, 2004 2003 2004 2003 Revenue 494,156 500,792 1,057,305 1,093,754 Operating expenses 270,592 267,707 542,644 533,498 Selling, general and administrative expenses 131,754 135,331 268,434 286,724 Film and television program impairment expense 38,790 -- 38,790 -- ---------- ---------- ---------- ---------- 53,020 97,754 207,437 273,532 Amortization of intangibles 4,375 4,375 8,750 8,750 Amortization of property, plant and equipment 18,587 18,301 36,989 37,386 Other amortization 1,084 2,470 2,389 3,852 ---------- ---------- ---------- ---------- Operating income 28,974 72,608 159,309 223,544 Interest expense (79,719) (90,066) (161,156) (179,476) Interest income 1,251 -- 5,951 -- Amortization of deferred financing costs (1,821) (2,371) (3,905) (4,813) Interest rate swap losses (16,548) (8,867) (17,043) (8,853) Foreign exchange gains (losses) 436 (45) 5,126 (64) Investment gains net of write down (3,063) 22,108 (2,814) 22,108 Dividend income -- -- 1,415 1,533 ---------- ---------- ---------- ---------- (70,490) (6,633) (13,117) 53,979 Provision for (recovery of) income taxes (9,485) (10,585) 2,948 6,852 ---------- ---------- ---------- ---------- Earnings (loss) before the following (61,005) 3,952 (16,065) 47,127 Interest in earnings of Network TEN 17,699 10,884 56,592 36,661 Interest in loss of other equity accounted affiliates (186) (449) (349) (779) Realized currency translation adjustment 2,626 (900) 3,126 (900) ---------- ---------- ---------- ---------- NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS (40,866) 13,487 43,304 82,109 Loss from discontinued operations (170,411) (3,606) (173,085) (3,793) ---------- ---------- ---------- ---------- NET EARNINGS (LOSS) FOR THE PERIOD (211,277) 9,881 (129,781) 78,316 ========== ========== ========== ========== EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS: BASIC ($0.23) $0.03 $0.24 $0.42 DILUTED ($0.23) $0.03 $0.24 $0.42 EARNINGS (LOSS) PER SHARE: BASIC ($1.19) $0.01 ($0.73) $0.40 DILUTED ($1.19) $0.01 ($0.73) $0.40 7