CBS Corporation Sees Q2 Gains

NEW YORK: CBS Corporation’s second-quarter net profit rose by 27 percent to $423 million on revenues that were up by 2 percent to $3.3 billion.

Advertising revenues dipped slightly for the media group to $1.5 billion but content licensing and distribution revenues rose to $943 million. Affiliate and subscription revenues were $733 million.

For the entertainment assets, which include the CBS network, CBS Television Studios and the distribution divisions, revenues increased by 9 percent to $1.95 billion. This included a 19-percent boost in content licensing and distribution revenues.

Cable network revenues dropped by 13 percent to $536 million, partly as a result of the one-time Floyd Mayweather/Manny Pacquiao boxing event last year that is the highest-grossing pay-per-view event of all time. The division did report improved revenues from the local and international licensing of Showtime series, plus gains in affiliate and subscription fees.

“CBS turned in another terrific quarter, on the way to another outstanding year, as we continue to take advantage of all the growth catalysts before us,” said Leslie Moonves, chairman and CEO of CBS Corporation. “Our base business is very healthy, including our strongest upfront selling season in years, which will benefit us beginning in late September when the new higher pricing takes effect. At the same time, we continue to build our fast-growing, high-margin revenue streams at a rapid clip. During the quarter, retransmission consent and reverse compensation grew 44 percent and remain on track to surpass $1 billion in revenue this year. Our over-the-top streaming services, CBS All Access and Showtime OTT, continue to exceed expectations, and we anticipate a significant lift next year with the launch of our new Star Trek series on CBS and Twin Peaks on Showtime. Our content licensing business also had a great quarter and was up 16 percent thanks to lucrative international deals for our Star Trek library programming that will continue to benefit us as new episodes launch in January. All of these high-margin revenue streams will become an even bigger part of our revenue mix next year when we expect to complete the separation of our radio business and intensify our focus on our core content strategy. Looking ahead, we will continue to invest first and foremost in premium content while using excess cash to return capital to our investors. We will take advantage of every opportunity that is in the best interest of our shareholders, and we are more confident than ever in our long-term growth prospects.”