CBS Swings To Profit; Interactive Revs Drop 14 Percent


CBS’ earnings were on the positive side in Q3, as revenues were down less than 1 percent, an indication that the economic pain of the past year may be easing a bit. Specifically, net income in Q3 was $207.6 million ($0.30 cents per share) versus the $12.46 billion net loss ($18.58 per share) last year. While that may have been the case overall, CBS Interactive (NYSE: CBS) struggled in Q3, as revenues were down about 14 percent to $121.3 million. Separately, the network also received three-year $2 billion revolving credit facility. It replaces the CBS’ previous, undrawn, revolving credit facility that was scheduled to expire in December 2010. The company will use the funds to for general business purposes.

Staci adds: At the same time, CBS said it is “realigning” its operating segments “to more effectively highlight its long-term strategy of investing in content businesses and capitalizing on its strong local presence.” Under the new structure, Interactive no longer will report alone but as part of the new Entertainment segment. (CBS told us it will continue to break out Interactive’s revenues.) The current structure — Television, Radio, Outdoor, Interactive and Publishing — will be replaced by:

Content Group:

Entertainment: CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films and CBS Interactive;
Cable Networks: Showtime Networks and CBS College Sports Network

Local Group:
Local Broadcasting: CBS Television Stations and CBS Radio

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