Q2 Profit Soars at CBS

NEW YORK: Second-quarter profit at CBS Corporation increased nearly ten-fold, on an 8.6-percent rise in advertising revenue and improved margins from cost-cutting.

CBS’s net income was nearly ten times the level a year ago, increasing to $150.1 million. Revenue rose 11 percent to $3.3 billion.

The resurgence in ad spending was across the board, led by the automobile, telecommunications, retail, financial services and entertainment sectors. Local ad spending rose 17 percent from a year ago. Total ad sales rose 9 percent, affiliate and subscription fees were up 12 percent, and content licensing and distribution revenue increased 19 percent.

"CBS turned in terrific results in the second quarter of 2010," said Sumner Redstone, the executive chairman at CBS Corporation. "We remain focused on all the things that matter most—growing our businesses, enhancing our financial strength and broadening the reach of our industry-leading content—and I have never been more confident in our Company’s prospects. The operational expertise and financial discipline of Leslie and his management team continue to serve our audiences and shareholders well, and to position CBS as a long-term industry leader."

"For the second consecutive quarter, CBS delivered double-digit year-over-year revenue and profit growth, significant margin expansion and higher free cash flow," added Leslie Moonves, the president and CEO at CBS Corporation. "With top-line gains in all of our businesses, and a continued vigilance on cost containment, revenues are translating more efficiently into profits. Meanwhile, our content is thriving: The network finished another television season in first place, which helped us sell next year’s schedule in a very strong Upfront marketplace at attractive rates. And during the quarter we extended our sports programming deal with the NCAA in a truly beneficial way. At the same time, our large-market presence and dramatically improved cost structure make CBS a leading beneficiary of the rebounding local advertising marketplace. Looking to the second half of 2010, all signs point to ongoing growth and profitability. The very healthy ad sales pacing we’re seeing today indicates that the recovery is continuing, and we expect a significant lift in political advertising around the November elections. Going forward, we see continued and sustainable benefits from growth in retransmission consent fees, expanded international distribution of our content and the vastly improved economics of our NCAA deal, for many years to come. All the while, we’ll keep evolving our business model to meet the increasing demand for top-quality content on all of the leading emerging platforms, which represents a huge opportunity for CBS."