CBS Narrows Loss

NEW YORK: Revenues were up by 12 percent to $3.5 billion at CBS Corporation, which was able to narrow its first-quarter loss from last year’s $55.3 million to $26.2 million.

The company noted that adjusted net earnings for the period stood at $34.3 million, excluding restructuring charges of $57.1 million associated with the elimination of positions and contract terminations, and $25.9 million of discrete tax items.

The Entertainment segment, consisting of CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films and CBS Interactive, reported a 15-percent hike in revenues to $2.08 billion. The increase was driven by higher ad revenues at the CBS network, thanks to the Super Bowl. Television license fees remained relatively flat as compared with the same period last year, as higher international syndication sales and network license fees for new series were offset by lower domestic syndication sales. Adjusted operating income was down slightly to $103.5 million.

At the Cable Networks, revenues were up by 8 percent $368 million, with an operating income that rose from $77.4 million to $95.2 million.

"I could not be more pleased with how CBS performed in the first quarter of this year, and I’m confident that Leslie and his management team will build on this success as the economy continues to recover," said Sumner Redstone, executive chairman of CBS Corporation. "We’ve focused on strengthening our already solid financial position, building new efficiencies throughout the company, and investing in our top-quality content businesses—and I look forward to all that we will do to build on these accomplishments this year and beyond."

Leslie Moonves, president and CEO of CBS Corporation, added: "We got off to a tremendous start in 2010, as our businesses across the company capitalized on the improving operating environment. Network television is enjoying a robust scatter market, and with CBS in first place, we will be able to monetize what promises to be a very active Upfront. Our strength in prime time also establishes CBS as a leading beneficiary of the dual-revenue-stream broadcast model that continues to emerge, rewarding us not only with strong advertising revenues, but also a growing share of the retransmission consent fees that have now become a fact of the business. In addition, we’re building our other recurring revenue streams, including syndication and premium cable—a business that continues to achieve new financial and creative highs. Meanwhile, the economic recovery has also been a boon to our expanding Interactive platform, and our local TV and radio operations, which are in the midst of a dramatic upswing. Ad sales and pacing for these businesses have been up sharply so far this year, and we expect political advertising to heat up as the November elections approach. As importantly, with our lower cost structure throughout the company, the revenue growth we’re seeing is translating to higher margins. Going forward, we’ll maintain our focus on expenses, and add to the recent steps we’ve taken to strengthen our balance sheet and deliver value to shareholders. As always, we will keep creating and distributing the absolute best content out there. That remains the best strategy for success both today and well into the future."