CBS released earnings today and despite a better than expected boost from interest income and ad revenue from the Super Bowl, losses in the sale of radio stations in mid-size markets, a slowing outdoor ad business and a struggling TV network provided an early morning buzz kill.
The main culprit is that whole TV network thing, and Kelsey Grammer, the WSJ reports:
Worries have cropped up about flagging ratings at the core TV network, where operating income fell 9% in the first quarter despite a 2% increase in advertising revenue thanks to the airing of this year's Super Bowl. Profitability was hurt by a 31% decline in licensing fees from a year-ago period that included syndication sales of the "Frasier" TV show.
Moving from one struggling medium to another, CBS’s radio division has not recovered from the loss of Howard Stern, and took another hit during the Imus fiasco, eventually dumping the host for good. The division experienced a 9% decline in revenue.
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- Without a Trace, of Network Growth
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CBS's Profit Slips 5.9% On Sale of Radio Stations – [WSJ]