Revenues Fall For Q2 At CBS

Soft Q2

CBS CORPORATION second-quarter radio revenues fell 11% to $463.4 million, with operating income off 18% to $179.4 million, blamed both on station divestitures and weakness in the radio ad market. Same station revenues fell 5%.

"CBS CORPORATION has delivered yet again," said Executive Chairman SUMNER REDSTONE. "With smart, strategic acquisitions and selective investments, (Pres./CEO) LESLIE (MOONVES) and his team are positioning the Company for the future while doing a terrific job managing CBS's world-class assets. I am proud of all we have accomplished and confident that we'll continue to capitalize upon the unique set of opportunities that lie ahead."

I am proud of all we have accomplished and confident that we'll continue to capitalize upon the unique set of opportunities that lie ahead.

"We had solid second-quarter results with mid-teens EPS growth on an adjusted basis, as well as strong free cash flow which continues to allow us to return value to our shareholders," asserted MOONVES. "I'm pleased with our underlying revenue performance, coupled with the excellent showing by the CBS Television Network in the Upfront marketplace, which underscores the strength of our network television business. At the same time, we continue to adjust our portfolio of assets, moving this quarter to complete the sale of several television and radio stations and investing in new digital properties. Together with a host of other strategic investments, our acquisition of LAST.FM during the quarter adds a compelling interactive extension to all of our content properties and is helping us advance our overall strategy of building communities around our industry-leading content."

Overall company revenues fell 3% to $3.4 billion, blamed on the demise of UPN, the sale of radio and TV stations, and the NCAA basketball tournament falling in first quarter. Net earnings from continuing operations fell from $489.8 million to $404 million (64 to 55 cents/diluted share), although 2006's number included a $129 million (17 cents/share) tax benefit; adjusting for the tax benefit and station sales, net earnings from continuing operations rose 9% to $393.1 million (per share up 15% to 54 cents). Free cash flow rose 4% to $570.5 million.

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