Cap Cities/ABC Profit Up 15%

Capital Cities/ABC Inc. said its profit rose 15% in the second quarter, but the company’s core broadcasting operations continued to struggle.

The broadcasting and publishing company said it earned $147.5 million or $8.84 a share in the period, up from $127.8 million or $7.60 a share in last year’s second quarter.

But much of the gain stemmed from the company’s sale of its stake in the Tele-5 German television network a year earlier. Cap Cities posted a one-time after-tax gain of $11.3 million after deducting for real estate losses and other write-downs.

Revenues in the quarter rose only 2% to $1.39 billion from $1.36 billion last year.

“The company’s broadcasting operations continue to be adversely affected by the current recessionary environment,” Cap Cities said in a statement.

Operating income fell at the company’s local television stations and its radio operations.

The New York firm’s other major division--publishing--enjoyed a 43% increase in operating profit, the company said.