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CBS Corp. Earnings Up 26 Percent for Q3

Nov 2, 2006  •  Post A Comment

“CBS Corporation is right on track,” CBS Corp. Executive Chairman Sumner Redstone said Thursday as CBS Corp. announced a third-quarter performance that included a 26 percent earnings increase from its continuing businesses.

Net earnings fell dramatically to $316.9 million, or 41 cents per share, compared with $708.5 million the year before, when CBS Corp. was still reporting as part of Viacom Inc.

Radio continued to be a weak spot, with revenues dropping to $508.1 million for the quarter from $542 million the year before.

TV division revenues remained relatively stable at $2.15 billion for the quarter, compared with $2.16 billion the year before. That was in spite of a 3 percent drop in ad revenues (which the company attributed largely to the shutdown of UPN at the end of summer) and a 35 percent drop in home entertainment revenues (attributed to having gone from self-distribution to third-party distribution).

The launch of The CW with Warner Bros. Entertainment, to replace The WB and UPN, was considered an equity investment in the third quarter.

“CSI: Miami” syndication sales helped push licensing fees up 7 percent year to year. Increases in Showtime subscribers and affiliate rates helped nudge the television division’s affiliate fees up 6 percent year to year.

“This was another strong quarter, posting solid profit increases in television and outdoor, generating significant free cash flow and delivering the third of three dividend increases since the start of the year,” Leslie Moonves, CBS Corp. president and CEO, said.