CBS Earnings As Bad As Promised: Local Ads Kill TV, Online Ads Up 12% (CBS)

Nicholas Carlson | October 30, 2008 7:47 AM

CBS reported Q3 performance in line with it's October 10 earnings warning. (Join us for LIVE coverage beginning at 8:30 a.m. ET; refresh this page for the latest)

Interactive revenues remained a small fraction of the company's overall sales, increasing to $140.7 million from $35.9 million, due mainly to the CNET acquisition. Include CNET in last year's results and revenues grew 6% on a 12% gain in display advertising.

CBS television revenues were $2.1 billion, up 2% over the prior year. Poor ad revenues dragged on higher television license fees (thank you CSI: New York), home entertainment and affiliate revenues partially offset by lower advertising sales.

Radio revenues tanked, down 12% to $392.5 million from $445.7 million on divestitures and a weak ad market.

The company reiterated a cautious outlook amid a sharp downturn in local TV advertising which CBS expects to continue. CBS (CBS) said it expects full year operating income to decline mid-teens from the prior year.

CEO Les Moonves's canned statement: "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."...