NEW YORK — Inc. said Tuesday that its first-quarter net income declined 3% despite a 9% gain in revenue.
Thomas H. Wyman, chairman and chief executive of CBS, attributed the results to a higher debt load, weaker advertising and more expensive programming costs.
CBS said its net income for the three months ended March 31 came to $16.3 million, compared to $16.8 million in the same period a year ago. Income from continuing operations fell 38% to $16.3 million from $26.5 million. Revenue totaled $1.2 billion, compared to $1.1 billion.
CBS assumed a large amount of debt when it bought back 21% of its stock last year for $1 billion as part of its successful strategy to fend off a hostile bid from Atlanta broadcaster Ted Turner.
The company's first-quarter profit benefited from sharply improved results at the CBS records group. The group's profit jumped 109% on a 21% increase in revenue. Profit at the company's broadcast group declined 66% on a 6% increase in revenue. The publishing group narrowed its seasonal operating loss by 19% on a 5% decline in revenue.