• by Wayne Friedman , August 2, 2012

Lower advertising and TV content revenues sank CBS revenues a bit in the second quarter -- but the media company lifted net income near double-digit percentages.

CBS says advertising sales dropped 3%, or $73 million, to $2.1 billion for the second quarter -- mostly due to the semifinals of the big NCAA Tournament, which ran in the first quarter. CBS says it was also hit with the unfavorable impact of foreign exchange rate changes.

Plus, CBS says there was lower content licensing and distribution revenues -- 8% down or $70 million to $816 million. CBS also says the second quarter of 2012 had compared to much higher second-quarter 2011 results. During that period, it made dozens of programs for digital streaming -- as well as the third-cycle domestic syndication sale of "Frasier" during the second quarter of 2011.

CBS' revenues dropped to 3% to $3.48 billion in the second quarter of 2012. Net income grew 8% to $427 million.

All of CBS' entertainment revenues declined to $1.7 billion from $1.8 billion. This category includes national advertising sales as well as revenues from sales of TV shows. Local broadcasting grew a bit to $704 million from $691 million. Outdoor revenues drifted lower -- $481 million from $490 million.

Advertising revenues -- a concern among analysts -- now represent a modest 62% of all revenue coming in at $2.1 billion for the period. This share of revenues is down a bit from previous periods. Revenues from content sales -- TV shows, primarily -- are the next-biggest contributor at 23% or $816 million.

Affiliate and subscription fees are now at 13% or $465 million.

Affiliate and subscription fees grew 8% or $36 million to $465 million in the quarter from rate increases at Showtime Networks, CBS Sports Network and Smithsonian Networks, and higher retrans revenues.