Higher Costs at TV Network and Lower Interest Income Hurt CBS

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” in the late-night category.

For the quarter, CBS’ net income fell 4% to $44.5 million, or 69 cents a share, from $46.4 million, or 55 cents a share, in the year-ago quarter. The higher earnings per share reflect a $1-billion buyback of its own stock completed in the third quarter.

Revenue tumbled to $855.2 million from $1.04 billion.

For the year, net income slid 14% to $281.6 million, or $3.74 a share, from $326.2 million, or $4.08 a share. Revenue rose 6% to $3.71 billion from $3.51 billion.