CBS Corp. Posts $12.5 Billion Loss

NEW YORK, October 30: As a result of a one-time impairment charge
of $14.12 billion, CBS Corporation has posted a third-quarter loss of $12.5
billion, on revenues of $3.4 billion, which were 3-percent higher than the
prior-year quarter.

Earlier this month, CBS announced that as a result of the economic
downturn, it had performed an interim impairment test on its goodwill and
intangible assets, resulting in the $14-billion charge for the quarter.

Revenues, meanwhile, were up thanks to a gain in syndication
revenues—driven by the U.S. cable syndication of CSI: New York—and by the acquisition of CNET Networks. Those
partially offset lower advertising revenues.

Television revenues at the company gained 2 percent to $2.1
billion, but operating income dropped 17 percent to $368.6 million. Radio
revenues were down 12 percent to $392.5 million, and operating income fell 19
percent to $130.6 million. Outdoor revenues were relatively stable at $549.3
million, down just 1 percent, but operating income plunged 48 percent to $51.8
million. Publishing revenues were up 5 percent to $225 million, with an
8-percent gain in operating income to $23.4 million. Interactive revenues stood
at $140.7 million, up from $35.9 million, but the division posted a wider loss
of $15.2 million.

"In the current economy, every company must keep a firm eye
on costs and manage each business with distinction," said Sumner Redstone,
the executive chairman of CBS Corporation. "Leslie [Moonves, president and
CEO] 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."

Moonves added: "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."

He continued: "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
under way, 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
focused 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."

—By Mansha Daswani