CBS Corp. Q4 Revenue Hits All-Time High

NEW YORK: CBS Corporation’s fourth-quarter revenue was up 6 percent, reaching an all-time high of $3.9 billion.

“We had a terrific fourth quarter, and CBS is now in position to build strong momentum throughout 2016,” said Leslie Moonves, the chairman, president and CEO of CBS Corporation. “Our base businesses are growing well, thanks to the strength of our premium content and the continued improvement in the advertising marketplace. In addition, with Super Bowl 50 here in the first quarter and political spending ramping up into the fourth, we expect 2016 will be a very good year for advertising. At the same time, our other high-margin revenue streams continue to thrive. Retransmission consent and reverse compensation are set to hit $1 billion in 2016—a year earlier than expected—and are on pace to surpass $2 billion in 2020. The international market is extremely exciting as well, with demand for our CBS programming higher than ever and new deals that are changing the way we license the Showtime brand overseas. Plus, our new streaming services—CBS All Access, CBSN, and Showtime over the top—are attracting a whole new set of younger viewers on better economic terms. So no matter how quickly the digital world changes—and no matter how viewers want their content—CBS is positioned to succeed.”

The revenue growth was driven by a 16 percent increase in content licensing and distribution revenues, with higher international television licensing sales. Affiliate and subscription fees rose 13 percent, driven by continued increases in retransmission revenues and fees from CBS Television Network affiliated stations. Advertising revenues increased 1 percent, driven by 8 percent growth in network advertising, which was partially offset by the benefit to local broadcasting in 2014 from political revenues.

Operating income for the fourth quarter of 2015 was $357 million, including a one-time impairment charge of $484 million from radio licenses and a gain from the sale of an internet business in China of $120 million. On an adjusted basis, operating income of $747 million for the fourth quarter of 2015 grew 6 percent.

Entertainment revenues of $2.46 billion grew 9 percent, driven by 8 percent growth in network advertising revenues. Affiliate and subscription fees were up 45 percent, and content licensing and distribution revenues grew 7 percent as a result of increased international television licensing revenues. Entertainment operating income was $347 million, up from $253 million for the same prior-year period, thanks to the increased revenues.

Cable Networks revenues of $562 million were up 13 percent, led by higher revenues from the international licensing of Showtime original series. Cable Networks operating income was $228 million, compared to the year-ago period’s $241 million, as Q4 2014 benefited from the licensing of higher-margin titles.