Olympics cast shadow over CBS 2Q profit beat

Net income in the three months to June 30 rose to $427 million, or 65 cents per share. That handily beat the 59 cents per share expected by analysts polled by FactSet.

Revenue slipped 3 percent to $3.48 billion, below the $3.53 billion expected.

Advertising revenue fell 3 percent to $2.14 billion while rerun sales fell 8 percent to $816 million. Fees from TV distributors who pay to carry the CBS network and its Showtime channel rose 8 percent to $465 million.

Overall, the company said advertising revenue in the second quarter reflected a “steady marketplace.”

Profits went up despite the revenue fall partly because fees from distributors are more profitable than ad sales. The shift of some college basketball games into the first quarter also reduced programming costs in the second quarter.

CBS’ stock rose 26 cents in after-hours trading to $33.30. In the last year, it has traded in a range of $17.99 to $35.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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