CBS Posts Increase in Q2 Earnings

NEW YORK: Net income was up 8 percent at CBS Corporation in its second quarter to $427 million, though revenue did slip.

Q2 revenue came in at $3.48 billion compared with the year ago’s $3.59 billion. CBS attributed the performance to two key factors: the company’s initial multi-year digital streaming agreement—under which dozens of the company’s library titles were first made available for streaming—and the semifinals of the NCAA Division I Men’s Basketball Championship, which aired during the first quarter of 2012. Some of the impact was offset by gains in high-margin affiliate and subscription fee revenues.

Entertainment revenues dipped 7 percent to $1.71 billion. Revenue at the cable networks was up, increasing 8 percent to $446 million. There were small gains in publishing (3 percent) and local broadcasting (2 percent), and outdoor took a slight hit (down 2 percent).

“CBS’s content continues to fuel the success of this great company,” said Sumner Redstone, executive chairman of CBS Corporation. “In a world where great programming commands premium pricing, we continue to hit on all cylinders. I am extremely pleased with our terrific second-quarter results, and I am confident that Leslie and his management team will build on our momentum in the quarters and years to come.”

“Our record second-quarter results reflect CBS’s underlying strength and the ongoing evolution of our business to encompass multiple sources of growing and recurring high-margin revenue,” added Leslie Moonves, the president and CEO of CBS Corporation. “The good news is, there’s so much more to come, and there are several important events just ahead. The U.S. presidential election will be a major factor in our second half results, and the London Olympics will give a considerable lift to our outdoor business. And as we head into 2013, we will benefit from the Super Bowl, CBS’s success in the upfront marketplace, as well as from a number of hit shows that will be sold into syndication. Plus, we are containing our costs and reducing our interest expense, and as a sign of the confidence we have in our future, we recently announced a significant increase in the amount of capital we are returning to our shareholders both through our ongoing dividend and accelerated share buyback program. For all of these reasons, we’re confident 2012 will be a record year, and we will produce exceptional results in 2013 and beyond as well.”