CBS Reports Reduced Profits, Revenues

NEW YORK:  For the fourth quarter, CBS Corporation’s net profit dropped 52 percent to $136.1 million, with revenues down 6 percent to $3.5 billion.

For the year, meanwhile, revenues were relatively stable at $13.95 billion, but the company fell into a loss of $11.7 billion after write-down charges.

Sumner Redstone, the executive chairman of CBS Corporation, said in releasing the financials: "We are clearly in the midst of one of the most difficult financial environments in history, with very little visibility on how long these economic conditions will continue of if there is worse to come. But one thing that is clear to me is that Leslie [Moonves] and his team are managing our businesses superbly with an eye toward future growth. CBS’s strength as a content provider will continue to position it for success."

Moonves, president and CEO of CBS, added: "The marketplace was under increasing pressure throughout 2008, yet we were still able to deliver annual revenues of nearly $14 billion, adjusted operating profits of almost $2.8 billion and free cash flow of just under $1.7 billion—results that reflect the quality of our content and the enduring strength of our operations. As the contraction of the economy accelerated in the fourth quarter, our businesses were affected, in particular our local businesses, but we did not deviate from our ongoing strategy: to create winning content, regardless of the marketplace. At the same time, we continue to exercise a very disciplined approach to capital investment, and have taken substantial costs out of all of our businesses, in order to help margins going forward. We are confident that our considerable operational accomplishments will help position us to capitalize on growth opportunities as soon as the economy improves."

In the quarter, television revenues fell 8 percent to $2.2 billion, with an operating income of $272.2 million, a 40-percent drop. For the year, meanwhile, television revenues were essentially flat, at $9 billion, with an operating income that fell 14 percent to $1.5 billion.