NEW YORK: CBS has reported better-than-expected fourth quarter results, posting a net income of $335 million (€254m; £171m). A year ago, the media company recorded a loss of $9.14 billion when its results included a substantial write-down.
Revenue in Q4 rose 2% to $3.88bn from a year ago, bolstered by a 10% rise in the outdoor advertising unit.
CBS also announced a $1.5bn stock buyback, and its fourth dividend increase since its split from Viacom last year [WARC News: 27-Feb-06].
Ceo Leslie Moonves said: "Strong fourth-quarter operating results in television, outdoor and publishing helped us surpass our key financial targets for 2006."
He added that while he believed in the "long-term growth" of digital media, traditional businesses remained central to his company's' prospects: Using an American Football analogy, Moonves said: "As it stands now, we still believe in the blocking and tackling of our basic assets, which are television, radio and outdoor, and they're still great businesses."
However, the company expects to post roughly flat revenue and operating income this year as it sheds radio and TV stations in smaller markets. It also faces softening TV ratings and continued difficulty in its radio business.
Data sourced from Wall Street Journal Online; additional content by WARC staff