CBS Corp. Posts Lower Profit, Cable a Bright Spot

NEW YORK: CBS Corporation saw its second-quarter net earnings slip 24 percent to $332 million, while revenue was up 1 percent to $3.22 billion.

Each of the company's major segments posted revenue declines, with the exception of cable. Cable networks revenues were $615 million for the second quarter, up 19 percent from the same prior-year period, primarily driven by the distribution of Showtime's pay-per-view boxing event. Segment operating income for the second quarter of $220 million increased from $213 million for the same prior-year period, as the revenue growth was partially offset by higher programming costs for the pay-per-view boxing event.

Entertainment revenues (CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Interactive and CBS Films) were $1.79 billion, which is down from the $1.84 billion in the same prior-year period. Ad revenues were down 2 percent, due to a sale of an internet business in China during the first quarter of 2015 and the timing of certain sporting events on CBS. Affiliate and subscription fees were up 50 percent. Operating income for the segment was $262 million, compared to the year-ago's $341 million, with lower revenues and higher investment in programming and digital distribution initiatives.

Local broadcasting revenues of $654 million for the second quarter decreased 2 percent. The decline was the result of lower advertising revenues, including political spending from last year's midterm elections. Operating income for the second quarter of 2015 was down 8 percent to $198 million, primarily reflecting the revenue decline.

In publishing, revenues were $199 million, compared to the same period a year ago of $211 million. Operating income of $25 million showed a 9 percent gain.