CBS profit rises in third quarter
EmptyNEW YORK -- CBS Corp. reported a higher third-quarter profit Thursday despite a slight revenue decline.
CBS stock has been dropping in recent weeks amid analyst downgrades as Wall Street has expressed fear about future ratings and advertising trends, among others.
After the market close, CBS Corp. posted a quarterly profit from continuing operations of $340.2 million, up 5%. Operating income before depreciation and amortization (OIBDA) edged up fractionally to $757.6 million.
Revenue declined 3% to $3.3 billion, driven by a 12% radio unit decrease and a 3% drop at the TV unit, partially offset by a 9% increase at book unit Simon & Schuster and a 3% gain in the outdoor division.
Third-quarter TV unit revenue dropped to $2.1 billion, dragged down by lower television license fees and ad revenue. Advertising revenue fell 4%, with CBS citing recent TV station sales and the absence of UPN as reasons. TV OIBDA rose 4% to $476.1 million.
CBS Radio's quarterly revenue came down to $445.7 million because of station sales and continued ad sluggishness. Adjusted for station sales, revenue was down 7%. Radio OIBDA was 19% lower.