CBS posts increases despite revenue decline
The $3.48B CBS raked during Q2 2012 may sound like a lot, but it isn’t when compared to the $3.59B recorded a year prior. However, the company reported positive numbers in OIBDA and in operating income.
The company said making certain library titles available for streaming and NCAA Basketball had an impact, but cited improved results from affiliate and subscription fees, and said the entire company is building its business on a steadily improving advertising marketplace.
Local broadcasting improved a modest 2%, rising from $691M to $704M. Broadcast’s local group partner outdoor moved in the other direction, falling from $490M to $481M.
On the content group side, entertainment fell from $1.836B to $1.707B, cable networks improved from $413M to $446M, and publishing improved from $183M to $189M.
Broking revenue into categories yielded the following results: Advertising dropped from $2.215B to $2.142B; content licensing and distribution fell from $886M to $816M, affiliate and subscription feed improved from $429M to $481M, and there was a slight drop in the catch-all other category from $56M to $53M.
Executive Chairman Sumner Redstone commented, “CBS’s content continues to fuel the success of this great company,” said Sumner Redstone, Executive Chairman, 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.”
Added President/CEO Leslie Moonves, “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. 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.”