matched second-quarter earnings targets but posted a revenue decline as the company's struggling radio business continues to weigh on results.
For the quarter ended June 30, the New York-based broadcaster made $490 million, or 64 cents a share, from continuing operations. That's up from the year-ago continuing operations profit of $380 million, or 47 cents a share. The latest quarter included a tax benefit of 17 cents a share. CBS said that excluding stock-based compensation costs, UPN shutdown costs and the tax benefit, it made 50 cents a share, in line with the Thomson Financial estimate.
But revenue fell 1% from a year ago to $3.48 billion, missing the $3.68 billion Wall Street target. Television revenue fell 1% from a year ago to $2.26 billion, and radio revenue dropped 8% to $519 million. Outdoor advertising revenue rose 7% to $534 million and publishing revenue inched up 1% to $176 million.
Free cash flow rose 2% to $546 million, CBS said.
"Radio has struggled as the marketplace continues to face challenges," said CEO Les Moonves. "Nevertheless, we are encouraged by the early results of many programming changes, particularly during morning drive time. The sale of selected stations in smaller markets will enable us to focus all of our energies on higher-growth markets, and recent initiatives to reduce Radio's cost structure will enhance the turnaround."
CBS said it is on track to deliver low single-digit growth in revenues and midsingle-digit growth in operating income and earnings per share.