CBS 3Q TV Revenues Rise
November 9, 2009
NEW YORK: CBS TV revenues increased in 9 percent for the
company’s third quarter ending Sept. 30. Television revenues totaled $2.27
billion compared to $2.08 billion for 3Q08. The increase was attributed to
higher TV license fees and affiliate revenues, though partially offset by
softer ad revenues.
Ad sales yielded more than $1 billion for the segment--44 percent of the total
and down from 51 percent of it a year ago.
Syndication fees were $799.1 million or 35 percent of total TV revenues.
Syndication brought in $585.5 million last year. This year’s total grew on the
strength of first-cycle sales of “Medium,” “Criminal Minds,” “Ghost Whisperer,”
“Everybody Hates Chris” and “Numb3rs”
Affiliates contributed $335.1 million, or 15 percent, compared to $300.6
million last year. Subscription and rate-increases at Showtime and CBS Sports
College Network were cited.
TV operating income was $440.6 million versus an operating loss of $7.58
billion for the same prior-year period, which included an impairment charge of
$7.94 billion to reduce the carrying value of goodwill and intangible assets.
“Going forward, we have many reasons for optimism as we look to 2010: In the
new fall season, we are not only again the No. 1 television network, we have
also grown our audience year-over-year,” said Les Moonves, CBS president and
CEO. “...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.”
Consolidated revenues for the third quarter of 2009 totaled $3.35 billion
compared to $3.38 billion last year. Net earnings were $207.6 million versus a
net loss of $12.46 billion last year
Diluted earnings per share were 30 cents, in 2009 compared to a loss of $18.58
per diluted share in 2008. The Street pegged 3Q09 EPS at 22 cents.
Results for 3Q09 included a pre-tax non-cash impairment charge of $31.7 million;
the 2008 quarter included a $14.12 billion impairment.
Free cash flow for the third quarter of 2009 was a net cash outflow of $23.6
million versus a net cash outflow of $38.1 million for the third quarter of
2008. Cash and equivalents totaled $473.8 million as of Sept. 30; long-term
debt was $6.96 billion.
In a separate announcement, CBS said it secured a $2 billion revolving credit
facility, replacing one it had not drawn on that was due to expire December
2010. The new credit line will be used to support commercial paper borrowings
and for general corporate purposes.
-- Deborah D. McAdams
October 28, 2009: “Analyst” CBS Expected
to Hit Q3 Estimates”
“Given various positive comments made by management coupled with a
healthier-than-expected scatter market, we anticipate CBS to at least meet--and
potentially exceed--Q3 expectations of 22 cents.”
October 14, 2009: “CBS Reaffirms 2009 Outlook”
CBS reaffirmed its outlook on full-year results for 2009, just as Sumner
Redstone said he would sell shares of the media company.
October 12, 2009: “CBS Scores Retrans With
On average, CBS (NYSE: CBS.A) has been getting
about 50 cents per subscriber a month.
October 1, 2009: “Moody’s Goes Stable on
Moody’s Investors Service changed its outlook on the U.S. TV broadcast
industry from “negative” to “stable.”
September 16, 2009: “Analyst Upgrades CBS”
“... we still see [approximately] 30 percent potential upside to the
July 28, 2009: “CBS Expected to Meet the
“Given that Street estimates for CBS have continued to come down over the
past month or so, we do not anticipate another significant miss...”
July 1, 2009: “Deutshe
Bank Cuts CBS Forecast”
The investment bank scaled back its outlook because of skepticism about a
rally in the media segment.
June 22, 2009: “CBS CFO Steps Down”
Fred Reynolds relinquished his CFO duties July 20. He’ll be succeeded by Joseph
Ianiello, who’s been deputy CFO since November.
June 8, 2009: “S&P
Cuts CBS Credit Rating”
The rating outlook is negative, and was downgraded in part on falling
May 28, 2009: “CBS
Increases Senior Note Offering”
CBS Corp. is reopening its senior note offering to raise another $250 million.
May 8, 2009: “CBS TV
Segment Revenues Down 12 Percent”
CBS’s results for the first quarter reflected the absence of political spending
on TV as well as the soft market.