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CBS Earnings More Than Double In Second Quarter

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LOS ANGELES (CBS/AP) — CBS Corp. Tuesday t announced that its net income more than doubled in the second quarter, helped by new deals with online distributors such as Netflix and a small increase in advertising revenue.

Net income came to $395 million, or 58 cents per share, compared with $150 million, or 22 cents per share, a year ago.

Revenue grew 8 percent to $3.59 billion.

The results beat the forecast of analysts polled by FactSet, who were looking for earnings of 45 cents per share on revenue of $3.55 billion.

Advertising revenue rose 3 percent from last year, despite being compared with higher political advertising and higher revenue for the NCAA college basketball tournament a year ago. This year, CBS shared coverage of the tournament with Time Warner Inc.’s Turner. That reduced revenue, but it also lowered costs and improved profits. The April 4 championship game fell during the second quarter.

The broadcaster also benefited from growing appetite for online video. In February, CBS struck a two-year deal to allow online video company Netflix Inc. to stream older CBS shows such as “Medium,” “Frasier,” and “Cheers” to its subscribers. CBS struck a similar deal with Amazon.com Inc. last month. CBS said content licensing and distribution revenue grew by 21 percent.

Meantime, CBS averaged 6 million viewers for its primetime programming between July 25, and Sunday, according to live-plus-same-day figures released Tuesday by The Nielsen Co.

It again received a boost from “Big Brother,” with all three of its episodes winning their time slots and finishing among the week’s 10 most-watched programs. The Sunday episode was the most watched, averaging 8.17 million viewers to finish fifth for the week.

Shares of New York-based CBS rose 22 cents to $26.50 in after-hours trading following the release of results Tuesday. Earlier, they closed the regular session down $1, or 3.7 percent, at $26.28.

(TM and © Copyright 2011 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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