NEW YORK - US MEDIA giant CBS reported a huge quarterly loss on Thursday due to an expected US$14.12 billion (S$20.75 billion) writedown of the value of its television and radio assets.

CBS said it suffered a loss of US$12.46 billion, or US$18.58 per share, in the third quarter of the year compared with a net profit of US$340.2 million, or 48 US cents per share, during the same period last year.

The writedown of the book value of its television and radio stations had been previously announced and the massive one-time loss did not appear to frighten investors.

CBS said revenue increased by three per cent in the quarter compared with the same period last year to US$3.38 billion on growth in syndication revenues and the acquisition of Internet news company CNET Networks.

Excluding the extraordinary charges, CBS earned 43 US cents per share, above the expectations of analysts of 40 US cents per share.

CBS said television advertising dropped 14 per cent in the third quarter, primarily due to competition from the Beijing Olympics on rival network NBC, although TV revenue rose overall by two per cent to US$2.1 billion.

Revenue for the radio division was down 12 per cent and the entertainment titan said the financial crisis was expected to cut into advertising spending.

'The continued economic slowdown in the United States has adversely affected advertising revenues across the Company's businesses, primarily at the local level, and the effects of the current financial crisis are likely to cause further declines in advertising spending,' CBS said in a statement.

'In the current economy, every company must keep a firm eye on costs and manage each business with distinction,' added Mr Sumner Redstone, the executive chairman of CBS.

CBS president and chief executive Leslie Moonves said that despite the current economic climate the company intended to pay a dividend.

'Our strategy is to grow our businesses for the long term by creating the best possible content, while keeping our commitment to providing very attractive dividends that offer value to our shareholders,' he said. -- AFP