NEW YORK: Despite an uptick in profit thanks to special items such as an asset-sale gain and a tax benefit, CBS reported slightly lower second-quarter revenues from its core broadcast radio and TV operations, adding to Wall Street's queasiness over the future of traditional broadcasting.
Although CBS boasts the most solid primetime schedule of the four major broadcast networks, gross income declined by 1.1% to $2.3 billion. The slide also reflected lower revenue from DVD sales. TV operating income fell 3% to $491.9 million (€381.5m; £257.6m), largely the result of $24m in closure costs for the UPN network.
Radio operations, immersed in a prolonged industry-wide slump, suffered an 8% drop in revenue to $519.1m, in part exacerbated by the loss of shock-jock Howard Stern to Sirius Satellite Radio. Operating income fell 20% to $219.6m.