CBS Turns A Profit In Its First Year As An Independent Company

The posting of earnings from the fourth quarter of 2006 mark CBS’s first full year as independent company after splitting off from Viacom. CBS earned a net profit of $335 million in the fourth quarter, up from a net loss of $9.2 billion last year, when results included a $9.4 billion writedown of the value of the company’s radio and outdoor advertising.

Revenue was up 2% to $3.9 billion with growth in television, outdoor advertising and publishing offset continued declines in radio.

At the time of the split, CBS was dubbed the “slow growth” side of Viacom. However, CBS stock has grown faster than Viacom’s.

CBS CEO Leslie Moonves is committed to finding new revenue streams and digital distribution methods for content such as CSI, 60 Minutes and The L Word.

Merrill Lynch analyst Jessica Reif Cohen restated a “buy” rating for the stock on the basis that it remains inexpensive in relation to its peers.

Visit Variety or see PR Newswire for a detailed financial statement.

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