CBS Corp. Q1 Radio Revenues Sink As Overall Revenues Rise
May 3, 2007 at 5:46 AM (PT)
CBS CORPORATION revenues rose 2% overall year-to-year for first quarter to $3.7 billion, with net earnings from continuing operations off from $234.5 million to $213.5 million (28 cents/diluted share); excluding a pre-tax gain and tax expense, net earnings rose 8% to $253.6 million (33 cents/share). Radio revenues fell 9% to $397.5 million, although the number reflects the sale of several stations in 10 markets as well as weakness in the radio ad market. Same-station radio revenues fell 4%.
Pronouncing himself "very pleased" with the company's performance, Exec. Chairman SUMNER REDSTONE said, "Strong free cash flow growth and an increase in adjusted earnings per share reflect the strength and vitality of our businesses. CBS creates some of the most popular content in the world, and we're beginning to monetize it effectively with new distribution platforms. I am very confident that LESLIE [MOONVES, Pres./CEO] and his team will continue to create value for shareholders by building our core operations while capitalizing upon interactive opportunities."
MOONVES added, "This first quarter showcased CBS's ability to leverage our broad, mass audiences into solid financial results. The success of the SUPER BOWL, FINAL FOUR, GRAMMYS as well as our overall schedule proved that our core broadcasting business is strong, a position that is strengthening as interactive technologies become mainstream. To this end, we created the CBS INTERACTIVE AUDIENCE NETWORK to greatly increase the reach of our core content, and to secure new platforms that can help us create next-generation content as well.
"What's more, we continue to invest in online and interactive companies that complement our core businesses. A significant amount of our strong free cash flow continues to be deployed to shareholders in the form of dividends, including another 10% increase this quarter. Also, to date we have reduced the number of shares outstanding by 7%, primarily through the repurchase of 47 million of our shares. Healthy core businesses that throw off significant cash, coupled with an aggressive push into interactive media, continue to provide tremendous value for our shareholders while positioning the company for future growth."