Reflecting a weakened display advertising market, CBS Corp.'s third-quarter Interactive revenues declined 15%, the company said on Thursday. That amounts to $121.3 million -- down from $142.3 million during the same quarter last year.

Primarily due to lower employee-related costs partially offset by lower revenues, Interactive operating income before depreciation and amortization increased 11% in the quarter to $4.1 million -- down from $3.7 million year-over-year.

Meanwhile, as a result of depreciation and amortization expenses associated with its CNET acquisition, CBS Interactive reported an operating loss of $15.6 million for the third quarter -- down from $14.0 million during the same period last year.

"Over the long term, we continue to believe that great content is the best driver of growth in this industry, which is why we've been so focused on building our content businesses across the company," Leslie Moonves, president and chief executive of CBS Corp., said Thursday.

"To highlight this strategy, we are realigning our business segments beginning in the fourth quarter," Moonves added. The aim, he said, is to achieve greater transparency.

Late last month, CBS Interactive head Quincy Smith announced plans to step down in January to run his own advisory business. Smith, who has led CBS Interactive since November 2006, is then expected to advise CBS as a paying client on "strategies and opportunities for growth" across the company's interactive businesses.

Specifically, Smith is expected to work closely on CBS's continued video monetization efforts, including oversight of authentication efforts and additive methods of distribution.

He is also expected to advise on partnering with technology companies to expand CBS's digital presence, and to explore new growth opportunities related to content, services and applications.

Overall, CBS Corp. posted a third-quarter profit on higher syndication sales as ad revenue improved. Profits, meanwhile, rose across every division except radio and outdoor.

Revenues for the third quarter totaled $3.35 billion compared to $3.38 billion during the same period last year. Operating income before depreciation and amortization for the third quarter was $565.6 million, compared with a loss of $13.48 billion for last year's third quarter. Operating income was $418.2 million for the third quarter of 2009, versus an operating loss of $13.62 billion for the same quarter last year.

Net earnings for the third quarter were $207.6 million versus a net loss of $12.46 billion during the third quarter last year, and diluted earnings per share were $.30 compared to a loss of $18.58 per diluted share in 2008.

Going forward, Moonves said, "the operating environment for our businesses continues to improve and we are finishing the year with strong momentum ... So far this year, each quarter has been better than the one before."

CBS Interactive is currently the ninth-largest Internet property worldwide, reaching nearly 200 million people a month, according to comScore MediaMetrix.

Its CNET property recently reported 27% growth in unique users, whlie GameSpot increased unique users by 13%, and Last.fm grew unique users 52%. TheInsider.com grew 473%, and Chow grew unique users 45%.

This news story is important. I recommend that everyone read it.