| CBS Corp posts stronger-than-expected 3Q profit |
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06/11/2009 16:31 (15 Day 06:27 minutes ago) | |||||
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The FINANCIAL -- CBS Corp., owner of the most-watched U.S. television network, reported a stronger-than-expected third-quarter profit.
According to Reuters, the company’s television revenue grew on syndication of hit shows like "Criminal Minds" and "Medium."
Revenue from the sale of those shows helped mask what remains a bigger problem for CBS and the rest of the media industry: a year-long slump in advertising that is only starting to ease, the same source wrote. CBS typically banks about 65 percent of its sales from advertising -- more than its rivals -- and in the third quarter that meant revenue dropped significantly in its radio, outdoor advertising and digital businesses.
Net income of 30 cents a share compared with a loss of $12.5 billion, or $18.58 a share, a year earlier, when the company wrote down radio and TV stations, New York-based CBS said on November 5 in a statement, Bloomberg reported. Excluding some items, profit totaled 39 cents, compared with the 23-cent average of 19 analysts’ estimates compiled by Bloomberg.
Chief Executive Officer Leslie Moonves is leading the industry in obtaining retransmission fees from cable and satellite TV systems, according to the same source. They may amount to as much as $200 million by 2012 or 2013, he said in September. CBS gets almost two- thirds of sales from advertising. News Corp. CEO Rupert Murdoch is pursuing similar payments for Fox.
Revenue declined to $3.35 billion from $3.38 billion. Analysts were expecting a profit of 22 cents a share on sales of $3.18 billion, according to a survey by FactSet Research, Market Watch informs. "The operating environment for our businesses continues to improve and we are finishing the year with strong momentum," said Moonves in a statement. "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."
According to the same source, television revenue rose to $2.27 billion from $2.08 billion.
At the CBS network, which had the most popular prime-time lineup of shows, advertisers are scrambling to buy last-minute commercial time, Moonves said. "There is a great deal of demand for our spots," he told investors and analysts, Reuters wrote. Overall, CBS reported net earnings of $207.6 million, or 30 cents a share, compared with a loss of $12.46 billion, or $18.58 a share, a year ago, when it wrote down billions of dollars of assets.
According to the same source, by division, TV revenue increased 9 percent, thanks partly to syndication, the term used when shows are sold for repeats to individual TV stations; radio revenue fell 19 percent; outdoor revenue fell 23 percent; digital revenue fell 15 percent; and publishing revenue rose 2 percent.
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