CBS reported higher second-quarter profit despite a dip in
revenue.
Net earnings were up 8% to $427 million, or 65 cents per
share, vs. $395 million, or 59 cents a share, a year ago.
Revenue fell 3% to $3.48 billion. CBS said it faced tough
revenue comparisons because the semifinals of the NCAA Men's Basketball
Tournament aired during the first quarter this year, and because of high
payments received a year ago in the company's first streaming video library
content deals.
The company said it had records for operating income before
depreciation and amortization, operating income and diluted earnings per share.
"Our record second quarter results reflect CBS' underlying
strength and the ongoing evolution of our business to encompass multiple
sources of growing and recurring high-margin revenue," said Leslie Moonves, president
and CEO, CBS Corp. "And as we head into 2013, we will benefit from the Super
Bowl, CBS's success in the upfront marketplace, as well as from a number of hit
shows that will be sold into syndication."
Operating income for the company's entertainment division,
which includes the CBS Television Network, its TV studio and syndication business,
were down 3% to $426 million as higher syndication profits were offset by last
year's streaming payment. Revenue for the entertainment division was down 7% to
$1.71 billion.
Operating income for CBS' cable networks was up 8% to $190
million. Revenue was up 8% to $46 million.
Local broadcasting operating earnings were up 8% to $248
million. Revenue was up 2% to $704 million. TV station revenues were up 6%,
thanks to increased spending by automakers, more political advertising and
higher retransmission payments. Spending by retail and financial service
clients was down. Programming and production costs were also down in the
quarter.
