CBS Corp sees growth in all divisions in 2008: CEO
LOS ANGELES (Reuters) - CBS Corp will see growth in 2008 in "every single division" and no short-term effects from a looming economic downturn or Hollywood's writers strike, Chief Executive Les Moonves told analysts on Thursday.
"The fundamentals of all our businesses are sound," said Moonves, as he launched into a presentation he said was designed to convince Wall Street that his company's shares are undervalued.
"As we look toward a potential downturn in our economy... we haven't seen any evidence of it, neither in the fourth quarter nor the beginning of the first quarter including our local businesses," Moonves told Citigroup's Annual Global Entertainment, Media & Telecommunications Conference.
Moonves said that while the Hollywood writers strike "is bothering me a great deal," it will not affect the company's bottom line in the "next number of months".
"We will be fine. Having said that, let's all hope the strike will be over long before that," Moonves said. "I am guardedly optimistic that it will be over in the next few months."
Moonves also said "steps... are being taken to push (talks) ahead" but did not describe what those measures were.
CBS expects to reap about 10 percent of an estimated $3 billion in political advertising this year, with the radio "achieving significant increases," Moonves said.
He would not confirm analysts' estimates that the network stood to gain $250 million from political advertising at its owned and operated stations. "I'm not going to verify it or not," Moonves said, "but I wouldn't tell you you are crazy.
"We are going to benefit greatly. We are the biggest TV station owner in the major markets," he said.
He also said the company's network television business was "sound", enjoying "good" spot, or "scatter" ad sales and pricing and strong ratings in some programming.
Network television was still the best game in town for the money, Moonves said. "The (presidential) debates, normally a boring snorefest, was watched by over 10 million people on a Saturday night. That's pretty impressive."
When asked how the company planned to spend its excess cash, Moonves said CBS has "no plans for a share buyback", having just completed $3 billion in buybacks last year, but "would love to do an acquisition." The company was eyeing new media with strong growth potential, he said.
Shares of CBS closed up 2.5 percent to $24.59 on Thursday on the New York Stock Exchange.
Reuters/Nielsen
