Profit Up at CBS Corporation

NEW YORK: CBS Corporation saw a surge in profit for the third quarter, as sales were up 11 percent thanks to an increase in revenues from the licensing of TV shows and higher ad revenues.

The company posted a 26-percent increase in third-quarter profit. Net income was $494 million, up from a profit of $391 million a year ago. Revenues for the quarter grew 11 percent to $3.63 billion.

Advertising revenues increased 4.3 percent, while subscription and affiliate fee revenue rose 23 percent. Content licensing and distribution revenues grew 18 percent, led by domestic licensing revenues from the first-cycle availabilities of NCIS: Los Angeles and The Good Wife.

"CBS's third quarter proves once again why content is king," said Sumner Redstone, the executive chairman of CBS Corporation. "Our programming is becoming more valuable all the time as we continue to take advantage of the ever-expanding multiplatform world. With Les and his team leading the way, I know that CBS is poised for continued success for many years to come."

"Our record third-quarter results—driven by double-digit revenue growth—are the continuation of a phenomenal first half, and provide more clarity on what will be another amazing full year for the CBS Corporation," added Leslie Moonves, the president and CEO of CBS Corporation. "We continue to launch new hits—from Under the Dome and Ray Donovan this summer to the top three new comedies on television this fall. Through our studio, we have an ownership interest in most of these shows, meaning that their success not only boosts our base business, but also our newer revenue streams as well, including very strong growth in retransmission consent fees, reverse compensation, international sales and all the opportunities afforded to us by exploding advances in technology. Plus, we are working toward a new advertising model in which we get paid for the significant, additional viewing that is increasingly taking place after a show first airs."

Moonves continued, "In addition to all of this, we closed on the sale of our Outdoor business in Europe and Asia during the quarter, and the separation of our Outdoor Americas business is expected to be completed next year. As a result, about half of our revenue will be coming from fast-growing, non-advertising revenue sources going forward. And our strategic Outdoor initiatives are enabling us to return tremendous value to our shareholders. So clearly we are on track to close out the year in terrific shape, and we have great confidence in our ability to execute for our investors in 2014 as well."