CBS Corp. saw revenue slide lower in both its television and radio segments in the second quarter of 2007.
CBS Corp. posted overall revenues of $3.4 billion in the second quarter (Q2) of 2007, a 3% drop from the same quarter a year ago.
Television revenues were down 4% to $2.2 billion due to the absence of the UPN network, the impact of station divestitures and the timing of the NCAA basketball tournament, which is recorded in Q2 2006 results but in the first quarter this year.
Radio revenue was down 11% to $463 million due station divestitures and advertising weakness. Outdoor was up 4% to $554 million in Q2 while publishing jumped 14% to $200 million.
CBS Corp.'s net earnings in the second quarter were $404 million, down from $781.7 million in Q2 2006. The
2006 results reflect earnings from discontinued operations of $291.9 million and include the gain on the sale of Paramount Parks. Net earnings from continuing operations for Q2 2006 were $489.8 million, which also includes a tax benefit of $129 million from income tax settlements.
On an adjusted basis, excluding tax-related items for both periods and gains from asset sales, net earnings from continuing operations increased 9% to $393.1 million in Q2 from $360.8 million a year earlier.
Diluted EPS from continuing operations increased 15% to $0.54 from $0.47 for the same prior-year period, due in part to lower shares outstanding in 2007.
CBS recorded $570.5 million of free cash flow in Q2, a 4% increase from the same period a year ago.
Despite the radio and TV slide, CBS President and CEO Leslie Moonves said in a statement that he was "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."