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CBS profit falls 14.6 pct as lower TV and radio profits offset outdoor ad unit gains

CBS profit falls 14.6 pct as lower TV and radio profits offset outdoor ad unit gains

CBS Corp. reported a 14.6 percent decline in fourth-quarter earnings Tuesday as revenue slipped, but said it saw no negative financial impact from a just-concluded writers' strike.
CBS earned $286.2 million (euro192.42 million) or 42 cents per share in the three months ending in December, down from $335 million (euro225.23 million) or 43 cents per share in the same period a year ago.
Revenues fell 3 percent to $3.76 billion (euro2.53 billion) from $3.88 billion (euro2.61 billion) a year ago.
Excluding one-time items, adjusted earnings fell to $366.7 million (euro246.54 million) from $410.6 million (euro276.05 million). But adjusted per-share earnings rose to 54 cents from 53 cents due share repurchases, beating analysts' estimates of 52 cents.
The company's shares fell 56 cents, or 2.2 percent, to $24.44 in morning trading Tuesday.
CBS's earnings from television fell 6 percent on a 4 percent decline in revenues, largely due to lower political advertising sales from the high levels in the year-ago period during the 2006 campaign season and also due to TV station sales.
CBS' CEO Leslie Moonves said the company didn't see a negative financial impact from the Hollywood writers' strike. The strike sent several prime-time shows and late-night talk shows into repeats but also allowed networks to save costs for making and developing new shows.
Earnings from radio fell 21 percent on a 10 percent decline in revenues on lower advertising revenues as well as the sales of radio stations in 10 cities.
Outdoor advertising remained a bright spot, with earnings rising 19 percent on a 7 percent gain in revenues, due to gains in Europe and Asia as well as favorable foreign exchange rates. Without the currency gains, revenues from outdoor advertising rose 2 percent.
CBS's book publishing division Simon & Schuster reported a 24 percent decline in earnings on 4 percent lower revenues compared with a year ago, when the company had big-selling titles including "Lisey's Story" by Stephen King.
CBS said it expects operating earnings to grow in the range of 3 percent to 5 percent for 2008.
For the full year, CBS earned $1.25 billion (euro0.84 billion) or $1.73 (euro1.16) per share, down from $1.66 billion (euro1.12 billion) or $2.15 (euro1.45) per share in 2006. Revenues edged down to $14.07 billion (euro9.46 billion) from $14.3 billion (euro9.61 billion).


Updated : 2021-05-18 12:43 GMT+08:00