CBS Corporation (CBS) recently reported better-than-expected third-quarter 2009 results. The quarterly earnings of 25 cents a share surpassed the Zacks Consensus Estimate of 22 cents, but fell 35.9% from 39 cents posted in the prior-year quarter.

On a reported basis Incorporatedluding one-time items, quarterly earnings of 30 cents a share improved from quarterly loss of $18.58 delivered in the year-ago quarter.

The sequential rise in revenue and the cost containment drove the earnings growth. Total revenue climbed 11.4% sequentially to $3,350 million in the quarter, but tumbled 0.8% year-over-year. However, the rate of year-over-year decline sharply decelerated from 11% and 14% experienced in the second and the first quarters of fiscal year 2009, respectively.

By segments, television revenue jumped 9.3% to $2,269 million, driven by a rise in television license fees (up 36%) and affiliate revenue (up 11%), partly offset by softness in local advertising revenue (down 5%). Publishing revenue climbed 2.4% to $230.4 million.

The radio division’s revenue dipped 18.8% to $318.9 million due to a slump in advertising demand. Revenue in the Outdoor segment also dropped 22.6% to $424.9 million due to sluggishness in advertising and an adverse impact of foreign currency translation. In constant dollars, outdoor sales slipped 19%. Interactive segment revenue slipped 14.8% to $121.3 million due to softness in display advertising market.

CBS notified that it is realigning its reporting segments. From fourth-quarter 2009, it will report under two groups – Content Group comprising Entertainment (television – network, studios and distribution, and films and interactive), Cable Networks, and Publishing, and another Local Group, comprising Local Broadcasting and Outdoor.

The media conglomerate CBS re-affirmed that its fiscal year 2009 operating income before depreciation and amortization (OIBDA) will be within the range of $1.725 billion to $1.925 billion. OIBDA for the quarter slipped 6.5% to $597.3 million.

During the quarter, CBS generated negative free cash flow of $23.6 million, compared to negative free cash flow of $38.1 million in the prior-year quarter. It had cash and cash equivalents of $473.8 million at the end of the quarter with total long-term debt of $6,986.4 million, representing a debt-to-capitalization ratio of 44.1%. CBS also secured a new three-year revolving credit facility of $2 billion, replacing the previous, undrawn facility that was slated to expire in December 2010.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (TWX) Time Warner Tops Street ConsensusDespite tough macro-economic conditions, Time Warner Inc. (TWX), the global leader in media and entertainment...
2. (SRCL) Stericycle Tops Consensus EstimatesWaste management service provider Stericycle Inc. (SRCL) earned 55 cents in the third quarter, beating...
3. (NWL) Newell Rubbermaid Tops Consensus EstimatesNewell Rubbermaid (NWL), the maker of Sharpie pens, Calphalon cookware and Rubbermaid containers, reported better-than-expected...
4. (DOV) Dover Corporation Tops ConsensusIndustrial conglomerate, Dover Corporation (DOV), announced third quarter results. The company reported earnings of 58...
5. (STT) State Street Corporation Tops Consensus EstimatesState Street Corporation’s (STT) third quarter operating earnings of $1.05 per share were 5 cents...
6. (AOS)  A. O. Smith Corporation Tops Consensus Estimates by 43%A. O. Smith Corp. (AOS) posted third quarter results before the opening bell today. The...

Search Posts by Tag: CBS | CBS Corporation | Broadcasting - TV | Services

RSS Feeds by Tag: CBS | CBS Corporation | Broadcasting - TV | Services |

Other Posts by: vitalstocks | RSS Feed for this author