CBS Revenue, Profits Jump In Q2

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Ad sales growth propelled CBS Corp.'s revenue and earnings to big gains in the second quarter.

Adjusted net earnings rose to $175.2 million, or 25 cents a share, up 180% from $62.6 million, or nine cents, a year ago.

Revenues rose 11% to $3.3 billion, led by an increase of 17% in local broadcasting, 12% in its cable networks unit and 10% at its entertainment division.

Total advertising sales were up 9%.

"With top-line gains in all of our businesses, and a continued vigilance on cost containment, revenues are translating more efficiently into profits," said Leslie Moonves, president and CEO of CBS. "Our large-market presence and dramatically improved cost structure make CBS a leading beneficiary of the rebounding local advertising marketplace."

CBS also touted some non-advertising revenue gains, starting with the Comcast retransmission-consent deal announced Aug. 2.

"We've established that CBS will be paid for retrans, something that I've been talking about for years and is a significant part of the future of our company," he said. "We now have a dual revenue stream base for CBS going forward,"

Moonves also said that CBS was receiving retrains money from some of its affiliates.

"It's a new way of doing business," he said. "We are providing premium content. We should be paid by MSOs and affiliates."

Moonves added that the Comcast deal also establishes a "growing revenue stream for Showtime," which was jolted two years ago when Paramount and other movie companies took their films and formed their own premium channel, Epix. "For those who had any questions about the ability of Showtime to continue to increase and thrive in the marketplace, Showtime is now secure and financially in great shape."

Read more at B&C here.

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