CBS profit up 8% on publishing and outdoor advertising

CBS Corp. reported a higher-than-expected 8% rise in quarterly profit Thursday, as strength in its publishing and outdoor advertising businesses overcame a depressed radio division.

CBS, which runs the most-watched U.S. TV network, also said it was prepared for a strike by script writers and had programs ready for substitution.

The company has been selling assets, including radio stations and TV stations, as it tries to shed lower-margin properties. It also has been raising its dividend and buying back stock.

“We will continue to position ourselves for faster growth of revenues across all the emerging platforms,” Chief Executive Leslie Moonves said.

Third-quarter net income was $343.3 million, or 48 cents a share, compared with $316.9 million, or 41 cents, a year earlier. Analysts had forecast earnings of 44 cents a share, according to Reuters Estimates.

Revenue fell 3% to $3.28 billion, compared with analyst forecasts of $3.36 billion, because of lower TV license fees as well as divestitures. The company cautioned that revenue would be down 2% to 3% for the year.

CBS shares fell 44 cents, or 1.5%, to $28.26 before its results were released. The stock was flat in after-hours trading.

The results come as Hollywood screenwriters and studios were deadlocked over a new contract, raising the specter of the first major strike against the film and TV industry in 20 years.

“In the event of a strike we’re fully prepared to offer alternative programming options, and we would anticipate no material impact on the company for the remainder of the television season,” Moonves said.

At CBS Television, revenue fell 3% in the quarter. But TV operating income before depreciation and amortization, a key measure of media industry profitability, rose 4% to $476.1 million.

Strong points for CBS included its outdoor advertising business, which includes billboards, and publishing, where it continues to benefit from the blockbuster title “The Secret.”

Outdoor revenue rose 3% to $552.2 million and operating income before depreciation and amortization increased 8% to $153.5 million. Publishing revenue rose 9% to $214.2 million and operating income before depreciation and amortization increased 5% to $23.8 million.

Radio, however, continued to hurt CBS results. Revenue from the unit fell 12%.