News

Cable Nets Boost 2Q Earnings at CBS

8/08/1999 8:00 PM Eastern

Cable operations helped to drive record revenue and
earnings at CBS Corp. in the second quarter ended June 30.

Net revenue for the quarter was $1.7 billion, up 13 percent
from the previous year, and earnings before interest, taxes, depreciation and amortization
(EBITDA) increased 55 percent to $427 million.

Sales at the cable segment -- which includes The Nashville
Network and Country Music Television, as well as regional sports networks -- increased 4
percent in the quarter to $156 million. Operating profit in the cable division rose 83.3
percent to $44 million, and EBITDA was up 40 percent to $70 million.

Including special items -- a $24 million restructuring
charge for the television segment and another $24 million charge for losses associated
with a previously divested cable unit -- EBITDA in the quarter was down 8 percent to $46
million.

In the six-month period, sales at the company were $3.4
billion, up slightly from the previous year. However, excluding revenue associated with
the 1998 Winter Olympic Games, net revenue for the six-month period increased 16 percent.

Companywide, EBITDA in the six-month period was up 29.5
percent to $707 million.

Cash flow for the company during the first half of the year
was up 28 percent to $699 million. In the cable-television segment, revenue rose 4 percent
to $286 million and EBITDA without special items increased 52 percent to $120 million.

"I am very pleased with the company's record
operating performance," CBS president and CEO Mel Karmazin said in a prepared
statement. "The gains made in our television segment were dramatic, with EBITDA
growth of 81 percent during the quarter and the first network primetime win in five
years."

Want to read more stories like this?
Get our Free Newsletter Here!
September
October

VR 20/20

The Times Center, New York, NY