Even as Sirius narrowed their loss and raised revenues 51 percent to $226.4 million (and subscriber counts grew 53 percent), CBS Radio division revenues fell 11 percent to $463.4 million. From CNNMoney: “CBS’ radio division, which made headlines this year when it dropped talk show host Don Imus because of controversial remarks he made in reference to a women’s college basketball team, suffered from a weak advertising market.”
Somewhere, Howard Stern is smiling.
Overall, CBS didn’t do badly. While CBS television revenues fell 4 percent to $2.2 billion, Outdoor advertising revenue rose 4 percent and Simon & Schuster unit revenues rose by 14 percent. The Radio division, however, was a definite drag even as Sirius drew praise from Wall Street.
Last week, XM also reported a narrowing of their second quarter losses. “Momentum for the pending merger with XM continues to build,” said Sirius radio president and chief executive Mel Karmazin. “Support from our customers, suppliers, and other groups representing a diverse cross-section of Americans, clearly demonstrates the public interest benefits and enhanced competition that will come from the merger.”
Craig Moffett, an analyst for Sanford C. Bernstein gave the deal a “50-50” chance of passing regulatory hurdles earlier this year.