CBS Radio Q1 Revenues Off 29%
May 7, 2009 at 5:03 PM (PT)
CBS CORPORATION first-quarter revenues fell from $3.65 billion to $3.16 billion, blamed on lower advertising revenues and a one-time benefit in first quarter 2008 from a change to self-distribution for the "CSI" shows internationally, partially offset by revenue from CNET and higher affiliate and home entertainment revenues. The company went from net income of $244.3 million last year (36 cents/diluted share) to a net loss of $55.3 million (8 cents/diluted share).
Radio revenues fell 29% from $363.5 million to $259.7 million, blamed on a weak ad marketplace and absence of revenues from the DENVER cluster sold last year and from certain WESTWOOD ONE contracts. Operating income for the division dropped 62% from $115 million to $43.7 million.
We are confident that the second half of the year will bring improved results due to a strong slate of syndication releases, the effect of cost reductions ... and early signs of an improving local advertising marketplace
"During a tremendously challenging period, LESLIE (MOONVES) and his team continue to manage CBS with distinction," said Executive Chairman SUMNER REDSTONE. "I have no doubt that the actions we are taking today, together with the strength of our industry-leading content, will translate to significantly better results once the economy improves."
"Like other companies, our results were affected by the economic downturn that continued during the first quarter," said Pres./CEO LES MOONVES. "In addition, there were a number of factors that had an impact on comparability. The advertising marketplace remained relatively robust through the first half of last year. And last year's first quarter benefited from several special items, including the shift to self-distribution of our CSI franchise internationally, significantly lower production costs as a result of the writers' strike, and record political advertising revenues, which were not repeated this year. We are confident that the second half of the year will bring improved results due to a strong slate of syndication releases, the effect of cost reductions that were made last year and early signs of an improving local advertising marketplace."
MOONVES added, "We are extremely pleased with the performance of our content businesses, particularly the CBS Television Network, which is having its best season in years with ratings up in all measures. And our non-advertising-supported businesses, which represent one-third of revenues, continue to perform exceptionally well. Each of our business segments was profitable on an OIBDA basis in the quarter, and together they generated healthy free cash flow. Meanwhile, we remain focused on reducing our cost structure, significantly lowering capital expenditures, and conserving cash in order to meet our debt obligations going forward."