Wednesday, February 18, 2009

CBS Saw 13% Decline in TV Ad Revenue in 2008

CBS Corporation showed some of the worst scars of the faltering economy, reporting a loss of $11.6 billion for the year and a 52% drop in net income. Two thirds of the company’s revenue is derived from advertising.

Hurt by local advertiser pull backs in radio and outdoor and a challenged national TV ad market, CBS Corp. said operating income at the television segment was down 40% in the fourth quarter, at $272.2 million down from $450.5 million in the year previous and for the full year down 14% to $1.5 billion in 2008. CBS had broadcast the Super Bowl in the year previous. TV segment revenue was down 8% for the fourth quarter at $2.2 billion and down one percent for the full year at $8.99 billion.

According to an earnings statement, the company saw a 13% decline in TV advertising revenue for the full year. But the TV segment wasn’t the worst performer in the CBS stable, the company’s outdoor unit saw operating income down 75% and radio down 56% in the fourth quarter.

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