Infinity profits grow

CBS eyes Net, rival

By MARTIN PEERS

CBS' radio and outdoor advertising subsidiary Infinity Broadcasting Corp. increased net profit 12% to $69 million in the fourth quarter, it said Thursday, on 39% higher revenues of $573 million, reflecting strong growth in ad revenues in both its businesses.

Meanwhile, CBS and Infinity CEO Mel Karmazin revealed Thursday the Eye web may group all its Internet interests together into an off-balance sheet company called CBS.Com, owned jointly by Infinity and CBS.

This company would be the entity used by Karmazin to "do something in the Internet space," if the broadcaster does any deals, he told Wall Street analysts on a conference call discussing Infinity's earnings.

CBS holds minority interests in Sportsline and CBS Marketwatch, both of which could be included in the new company, Karmazin said.

Eyeing Chancellor>/b>

He also told analysts that Infinity was interested in pursuing pieces of rival broadcaster Chancellor Media, which put itself on the market last month.

"We are certainly very interested in whatever acquisitions the government would allow us to make in connection with Chancellor," he told analysts. Infinity and Chancellor own stations in many of the same markets, reducing the likelihood that Infinity could buy the entire company.

Infinity's earnings report was the first since CBS sold a minority stake in Infinity to the public in a $3.1 billion public stock offering in December. The Eye retained 82% of Infinity.

Revenues rising

The radio broadcaster said adjusting for radio station acquisitions, revenues for the fourth quarter rose 13%.

Cash flow -- earnings before interest, taxes, depreciation and amortization -- rose 45% to $257 million. Adjusted for acquisitions, the cash flow growth was 19%.

For the year, Infinity said its net profit rose 32% to $235 million on 28% higher revenue of $1.89 billion.