CBS Radio Revenues Off In Q4, Full Year 2007
February 26, 2008 at 5:32 AM (PT)
CBS CORPORATION radio revenues fell 10% in fourth quarter to $447.1 million, resulting in full year 2007 revenues dropping 11% to $1.754 billion. Same-station revenues fell 6% for the quarter. Operating income fell 16% to $657.8 million, blamed on the decline in ad sales and station divestitures, partially offset by lower sports programming expenses.
Overall fourth-quarter revenues fell 3% year-to-year to $3.76 billion, impacted by the sale of radio and TV stations, loss of political advertising, and non-renewal of several marginally profitable outdoor transit contracts. Adjusted net earnings from continuing operations fell from $410.6 million to $366.7 million, blamed on increased income taxes, but adjusted diluted earnings per share rose 2% to 54 cents. Full-year 2007 revenues fell 2% to $14.07 billion, with the shutdown of UPN, station divestitures and non-renewal of outdoor contracts offset partially by SUPER BOWL revenue and growth at Outdoor and Publishing. Adjusted net earnings rose 3% to $1.36 billion, with adjusted diluted earnings per share from continuing operations up 9% to $1.88.
"I'm very pleased that CBS has turned in another solid quarter while making significant strides in the expanding interactive marketplace," said Executive Chairman SUMNER REDSTONE. "At the same time, the Company remained steadfast in delivering on its promises and returning significant value to investors. LESLIE (MOONVES) and his team continue to lead the Company with distinction, capitalizing upon our strength today and positioning CBS for success in the months and years to come."
"We finished 2007 with our businesses well poised to increase revenues and profits in 2008 and beyond," said Pres./CEO LES MOONVES. "In Television, I'm particularly pleased with the recent resolution of the WGA strike, which has restored stability to the network season. Meanwhile, Outdoor and Publishing had exceptionally strong performances for the year, with Outdoor picking up momentum to deliver a strong double-digit OIBDA gain in the fourth quarter. Our businesses produced a significant amount of free cash flow and, during the year, we returned $4 billion of cash to shareholders through a combination of dividends and share repurchases. At the same time, we used a prudent portion of our cash to invest in higher-growth properties like the online social networking community LAST.FM and digital outdoor displays both domestically and overseas."