CBS Corp on Tuesday said second-quarter earnings fell sharply from a year ago, when it was helped by a tax benefit and the sale of its Paramount Parks, but still beat expectations on stronger results from its publishing and outdoor divisions.
CBS, which runs the most-watched television network, reported second-quarter net earnings of $404 million, or 55 cents a share, compared with $781.7 million, or $1.02, a year earlier.
Year-ago earnings included income from discontinued operations of $291.9 million, reflecting a gain on the sale of its Paramount Parks. It also had a tax benefit.
On an adjusted basis, earnings in the latest quarter rose to 54 cents from 47 cents per share, surpassing the average analyst estimate of 51 cents per share, according to Reuters Estimates.
CBS revenue fell 3 percent to $3.4 billion, as strength from its publishing and outdoor advertising divisions was offset by a weak radio market.
CBS' radio division, which made headlines this year when it dropped talk show host Don Imus because of controversial remarks he made in reference to a women's college basketball team, suffered from a weak advertising market. At the same time, CBS is changing its format in some markets and divesting stations.
Revenue from that division fell 11 percent to $463.4 million and would have dropped 5 percent excluding its divestitures.
At CBS television, home to hit shows like CSI, revenue fell 4 percent to $2.2 billion, partly because the popular NCAA basketball tournament, which it broadcasts, aired during the first quarter in 2007 versus the second quarter in 2006.
TV operating income before depreciation and amortization, a key measure of media industry profitability, increased 3 percent.
Outdoor advertising revenue, which includes outlets like billboards, rose 4 percent.
Publishing was particularly strong, with revenue up by 14 percent as titles like The Secret sold briskly.