CBS Inc. on Wednesday reported lower net earnings for the fourth quarter and year, hurt by higher costs at its television network and a sharp drop in interest income from investments.
But New York-based CBS said sales and income before interest, taxes and other items hit record highs for the full year because of good TV ratings, including a strong performance by the “Late Show with David Letterman.”
Sales fell in the fourth quarter, however, because CBS had no professional football or baseball broadcasts. But that did not have a major effect on quarterly profits, CBS said, since it had previously accounted for the loss of the broadcasts.
For the quarter, CBS’ net income fell 4 percent, to $44.5 million, or 69 cents a share, from $46.4 million, or 55 cents a share, in the year-earlier quarter. The higher earnings per share reflect a $1 billion buyback of its own stock completed in the third quarter. Revenues tumbled to $855.2 million from $1.04 billion.
For the year, net income slid 14 percent, to $281.6 million, or $3.74 a share, from $326.2 million, or $4.08 a share. Revenues rose 6 percent, to $3.71 billion from $3.51 billion.
