CBS Profit Up Sixfold on Higher TV, Radio Ad Sales

CBS Corp., which has agreed to be acquired by Viacom Inc. for about $50 billion, said fourth-quarter profit rose sixfold, fueled by higher advertising sales at its television and radio stations.

Profit from continuing operations rose to $19 million, or 3 cents a share, from $3 million in the same period a year ago. CBS was forecast to earn 2 cents a share, the average estimate of five analysts polled by First Call/Thomson Financial. Revenue rose 24% to $2.22 billion.

Profit was lifted in part by CBS’ acquisitions of King World Productions Inc., the syndicator of “Wheel of Fortune” and “Jeopardy,” and Outdoor Systems Inc., the U.S.’ largest billboard company. All of CBS’ divisions benefited from strong ad sales as more Internet companies seek to attract customers, particularly in big cities or markets with a high concentration of Web-related businesses.

“You show me a highly wired market such as Austin [Texas], and I’ll show you good ‘dot-com’ spending,” said Bishop Cheen, an analyst at First Union Securities.

Ad sales at Infinity Broadcasting Corp., CBS’ radio and billboard arm, increased 32% to $759 million. Revenue from radio rose 17% to $531 million, while revenue from outdoor advertising increased about 90% because of the acquisition of Outdoor Systems.

Revenue at CBS’ television group rose 23% to $1.33 billion, helped by higher ad rates and King World, which also distributes “The Oprah Winfrey Show.”

Also helping profit were higher ratings at CBS’ network and owned-and-operated TV stations, bolstered by National Football League games and hit shows such as “Everybody Loves Raymond.”

CBS is tied with General Electric Co.’s NBC network for second place in audience ratings among U.S. households so far this season. Walt Disney Co.’s ABC, riding the success of hit game show “Who Wants to Be a Millionaire,” recently grabbed the No. 1 spot.

In the most recent quarter, CBS said it had a gain of $232 million, or 31 cents a share, related to the discontinuation of some businesses. That made net income $251 million, or 34 cents a share.

In the year-ago period, CBS said, it had a loss on the early retirement of debt of $4 million, resulting in a final loss of $1 million, or break-even on a per-share basis.

CBS shares fell $1.75 to close at $62.50 on the New York Stock Exchange.