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MUMBAI:
As a result of adverse market conditions, CBS performed an
interim impairment test on its existing goodwill and intangible
assets for all reporting units during the third quarter of
2008.
This
analysis resulted in a pre-tax non-cash impairment charge
of $14.12 billion. Due principally to this non-cash impairment
charge, operating income was a loss of $13.62 billion, versus
operating income of $645.8 million for the same quarter last
year.
Stock-based
compensation expense for the third quarter of 2008 was $38.3
million versus $29.3 million for the same quarter last year.
Reported net earnings from continuing operations for the third
quarter of 2008 were a loss of $12.46 billion, or a loss of
$18.58 per diluted share, versus earnings of $340.2 million,
or $.48 per diluted share, for the same prior-year period.
Revenues
of $3.38 billion for the third quarter of 2008 increased by
three per cent from the same prior-year period due to growth
in syndication revenues, driven by the domestic cable syndication
sale of CSI: New York and the acquisition of Cnet Networks
partially offset by lower ad revenues.
CBS
Corporation executive chairman Sumner Redstone says, "In
the current economy, every company must keep a firm eye on
costs and manage each business with distinction. Keslie and
his team are doing just that, and I'm confident that they
will continue to position CBS for success now and in the future."
CBS
Corporation president and CEO Leslie Moonves says, "Our
strategy is to grow our businesses for the long term by creating
the best possible content, while keeping our commitment to
providing very attractive dividends that offer value to our
shareholders.
"We
are confident that this will produce value and stability in
today's marketplace and solid growth as the economy begins
to improve. Our strong year-to-date free cash flow of $1.4
billion enables us to strategically invest in our businesses
and is more than sufficient to pay our dividend.
"
At the same time, we believe that in good times and bad, remaining
leaders in the content we produce is all-important. That is
why we are particularly pleased that for the first time in
more than twenty years, the CBS Television Network is number
one in all key categories through the first five weeks of
the season, and well-positioned to drive future results.
"
In the growing Interactive space, our integration of Cnet
Networks is well underway, and it has transformed CBS into
a top ten Internet company and the number one producer and
provider of premium online content. Finally, we are focussed
on taking the actions necessary to place our Company on an
even stronger financial footing, continuing to reduce costs
across the board and exercising a very disciplined approach
to investment in capital projects."
For
the first nine months of the year tevenues were $10.42 billion
an increase of one per cent from the same prior-year period
reflecting higher syndication revenues, primarily as a result
of the new international self-distribution arrangement for
the CSI franchise and the domestic cable syndication
sale of CSI: New York, higher affiliate revenues, Outdoor
revenue growth and the acquisition of Cnet.
These
increases were partially offset by the absence of the 2007
telecast of Super Bowl XLI on CBS Network and lower advertising
sales, particularly in local markets.
The
continued economic slowdown in the US has adversely affected
advertising revenues across the Company's businesses, primarily
at the local level, and the effects of the current financial
crisis are likely to cause further declines in ad spend. As
a result, the company expects full year operating income to
decline mid-teens from the prior year.
The company's 2008 business outlook excludes impairment and
restructuring charges, stock-based compensation expense, and
the impact of the acquisition of CNET and
divestitures.
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