CBS Reveals Sharp Decline in Earnings

02 August 2007

NEW YORK: US media giant CBS has posted a significant slide in Q2 profits. Net income was $404 million (€295.8m; £199.5m), compared with $781.7m a year earlier - aided by a tax benefit and the sale of its Paramount Parks business. Revenue fell 3.1% to $3.37 billion from $3.48bn.

A weak advertising market hit CBS's radio and television divisions. The latter revealed an 11% drop in ad sales and an 8% slide in licensing revenue. Radio suffered an 11% fall in revenue.

In contrast, the outdoor-advertising business enjoyed a 4% revenue rise thanks to a strong performance overseas, and CBS's publishing operation saw a robust 14% rise in sales.

Data sourced from Wall Street Journal Online; additional content by WARC staff