Infinity arm boosts Eye's net income

Karmazin calls qtr outstanding as revs rise to $1.7 bil

By JILL GOLDSMITH

NEW YORK -- Fueled by Infinity Broadcasting, but posting strong numbers across all units, CBS Corp. swung to a net income of $47 million in the latest quarter from a $43 million loss a year ago.

Revenue rose 8% to $1.7 billion and operating cash flow soared 51% to $46 million at the company, which is in the process of merging with Viacom.

CEO Mel Karmazin called the quarter outstanding. The CBS network had a strong start to the 1999-00 season with rating gains in primetime and latenight. David Letterman's show is up 14% in households year-on-year and Craig Kilborn's is up 17% in key demos.

Gridiron gains

National Football League ratings showed a double-digit increase season to date over last year.

Advertising is strong, Karmazin told analysts during a conference call, with higher revenue from every major product category. Next year he expects an influx of ad spend from political campaigns, the Olympics as well as government spending to encourage participation in the census.

CBS's strong network upfront last June will buoy its numbers in the current fourth quarter. At a network level, CBS is just about all soldout, he said, which is boosting spot rates.

Karmazin cited the success of "Judging Amy" and "Family Law," and said he's looking forward to fresh revenue streams from CBS' new morning offering "The Early Show," with Bryant Gumbel and Jane Clayson, launching Monday.

TV revenue from the CBS network and its 16 TV stations rose 4.7% to $955 million. The division swung to an operating profit of $64 million from a loss of $6 million the year before. In cable, including TNN and CMT, revenue was flat at $137 million, while operating profit jumped to $35 million from $13 million.

Radio powerhouse Infinity saw net profit jump to $111 million from $67 million. Rev rose 16% to $619 million and cash flow was up 23% to $282 million.