CBS Earnings Jump In Q2

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CBS reported higher second-quarter earnings as digital distribution revenue and affiliate fees rose.

Net income was $395 million, or 58 cents a share, more than double the $150 million, or 22 cents a share, from a year ago. Revenues rose 8% to $3.6 billion.

"Our extraordinary second-quarter results demonstrate the power of the strategic actions we've taken to strengthen our business model," Leslie Moonves, president and CEO of CBS, said in a statement. "We delivered stellar growth across every single key financial metric, nearing record levels in all profit measures. These remarkable results reflect our increasing ability to monetize our content, while at the same time, diversifying and de-risking our company for the future, including recent new licensing deals with leading online video distributors."

Revenues from content licensing and distribution rose 21%, thanks in part to a deal to stream some library titles with Netflix. Affiliate and subscription fee revenues rose 12%.

Advertising revenues were up only 3%, in part because the company's new deal splitting the NCAA Men's Division I Basketball Championship results in a sharing of revenues, but higher profits.

Operating income at CBS' entertainment division rose 97% to $440 million. The gains reflect lower programming costs due to the new "March Madness" deal. Revenues were up 10%, thanks in part to higher-retransmission fees and growth in network primetime advertising.

CBS' Cable networks showed a 35% increase in operating income to $176 million. Revenues rose 12% to $413 million. The company credited growth at Showtime Networks and CBS Sports Network for the gains.

Operating income for local broadcasting rose 7% to $230 million. Revenues rose 2% to $691 million, versus last year when station ad growth was fueled by political spending.

Read more at B&C here.