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CBS swings into profit on strong TV sales CBS shares rose yesterday on better that expected third quarter results, with the US media group benefiting from a strong performance at its TV operations. TV revenues for the three months to September 30 this year rose 9% to US$2.27bn from US$2.08bn for the same period a year earlier. Operating income was US$440.6m versus a loss of US$7.58bn in Q3 2008 due to a US$7.94bn impairment charge.  The Eye said TV licence fees increased 36% thanks to higher domestic syndication sales in 2009, including first cycles of Medium, Criminal Minds, Ghost Whisperer, Everybody Hates Chris and Numb3rs.Affiliate revenues increased 11% due to growth in subscriptions and rate increases at Showtime Networks and CBS College Sports Network, and higher retransmission revenues. Ad sales decreased 5%, however, due to "softness" in the local ad marketplace and lower political ad sales. CBS CEO Leslie Moonves said the company had "many reasons for optimism" as it looked forward to next year. "In the new fall season, we are not only again the number one television network, we have also grown our audience year-over-year," he said. "Our premium cable business continues to enhance its profile and once again added subscribers during the quarter. We've sold five series into domestic syndication this year, and global demand for our programming continues to grow." Overall, the US media group's revenue was marginally down at US$3.35bn but this was above analysts' expectations and the impact of significantly lower impairment charges meant that CBS swung from a loss of US$12.46bn in Q3 2008 to a profit of US$207.6m. Revenues at CBS Interactive, whose chief Quincy Smith is leaving at year-end, reported revenue down 15% to US$121.3m compared with US$142.3m a year earlier. This reflected weakness in the online ad display market, the company said. The division made an operating loss of US$15.6m versus US$14m in Q3 2008. Jonathan Webdale 6 Nov 2009 © C21 Media 2009 
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