CBS Sees Q3 Revenues Fall
Radio Revs Down 19%
November 6, 2009 at 3:54 AM (PT)
CBS CORPORATION third-quarter net revenues fell from $3.38 billion to $3.35 billion, attributed to lower ad sales offset by higher television syndication sales. Radio revenues fell 19% to $318.9 million, blamed on weakness in the radio advertising marketplace.
Net earnings grew from a net loss of $12.46 billion to a gain of $207.6 million (-$18.58/diluted share to 30 cents/diluted share). versus a net loss of $12.46 billion for the same quarter last year and diluted earnings per share were $.30 in 2009 compared to a loss of $18.58 per diluted share in 2008; before impairment charges of $14.12 billion in 2008, adjusted net earnings for the third quarter of 2008 were $265.9 million and adjusted diluted earnings per share were $.39. The results beat analysts' expectations for the quarter.
Over the long term, we continue to believe that great content is the best driver of growth in this industry.
"Through this extraordinary time, LESLIE (MOONVES, President and CEO) and his team have managed CBS not simply to survive but to truly thrive," said Executive Chairman SUMNER REDSTONE. "The strong performance of the CBS content businesses continues to build audiences, as well as our value proposition for advertisers. At the same time we’ve further solidified our financial position. I feel very good about what the future holds for CBS, especially given the improving economic outlook."
"The operating environment for our businesses continues to improve and we are finishing the year with strong momentum," said MOONVES. "So far this year, each quarter has been better than the one before, with the third quarter showing significant improvement over the second, just as we expected. Going forward, we have many reasons for optimism as we look to 2010: In the new fall season, we are not only again the #1 television network, we have also grown our audience year-over-year. Our premium cable business continues to enhance its profile and once again added subscribers during the quarter. We’ve sold five series into domestic syndication this year, and global demand for our programming continues to grow. And on the local front, pacing continues rising steadily for TV, radio and outdoor, and we expect that with our new streamlined cost structure, margins will improve significantly going forward as well.
"Over the long term, we continue to believe that great content is the best driver of growth in this industry, which is why we’ve been so focused on building our content businesses across the Company. To highlight this strategy, we are realigning our business segments beginning in the fourth quarter. Our aim is to offer greater transparency so others can continue to view CBS the way we do -- as a collection of leading content businesses in all the right areas of distribution -- and be better able to gauge our progress against our long-term goals going forward."
New Credit Facility
The company also announced that it has has entered into a new three-year $2 billion revolving credit facility, replacing the Company's previous, undrawn, revolving credit facility that was scheduled to expire in DECEMBER 2010. The new facility will be used to support commercial paper borrowings and for other general corporate purposes.
The arrangement of the credit facility was led by J.P. MORGAN SECURITIES INC.and CITIGROUP GLOBAL MARKETS INC.