Feb 19, 2009, 0:36 GMT
New York - US television network CBS reported a fourth- quarter profit plunge of 52 per cent Wednesday as advertisers slashed spending on television, radio and billboards.
The company announced that it was slashing its quarterly dividend by 81 per cent in reaction to the bleak economic conditions.
The results for the leading US broadcast network came despite its success in improving its prime-time ratings by almost 6 per cent.
The company said it earned 136.1 million dollars, or 20 cents a share, compared with a profit of 286.2 million dollars, or 42 cents a share, in the fourth quarter of 2007. Revenue slid 6 per cent to 3.53 billion dollars.
CBS said it would cut its quarterly dividend to 5 cents a share from 27 cents to give it more financial flexibility.
In a statement, chief executive Les Moonves described the move as 'a prudent action to take while we await improvement in the economy and the credit markets.'
The company said that television revenue fell 8 per cent to 2.21 billion dollars, while outdoor-advertising revenue decreased 15 per cent to 526 million dollars on lower sales. Revenue at CBS Radio fell 18 per cent to 367 million dollars, while the Simon & Schuster publishing division saw sales increase 1 per cent to 245 million dollars. CBS Interactive revenue nearly tripled to 186.3 million dollars, reflecting the company's acquisition of CNet Networks.
Your Talkback on this Story