How pumped about television this year is CBS Corporation Chair/CEO Leslie Moonves?
While some experts have been predicting TV ads would shrivel as viewers pursue video on streaming, cable and satellite services, Moonves says CBS Television is number one in all demos in the quarter, with and without football, which has led to a record-breaking quarter. And this is all happening in advance of the television ad upfront.
Advertisers are actually coming back to broadcast television to advertise, Moonves told investors and analysts in the earnings call last night, because: “Basic cable doesn’t have the reach of network TV and most of its channels are seeing declines in ratings. Marketers are realizing they get the best returns with broadcast TV advertising.”
The company owns about 80% of its network scripted TV series this year, helping it to monetize programming through multi-content licenses worldwide.
CBS is seeing the strong political advertising numbers its seen “in several election cycles,” and the company is on its way to breaking a record in those numbers as well.
All of this is happening before the all-important television advertising upfront.
The scatter market is as hot as it’s been in many, many years. We feel good about the hand we’ll be playing in the coming weeks,” said Moonves, adding that “with the ad market on fire we are salivating” about upfront.
Overall revenues were up 10% to $3.85 billion in the first quarter of the year. Operating income was up 14% to $821 million, an all-time high.
Diluted EPS was up 31% to $1.02, “the highest we’ve ever had. For the first time in history EPS came in above a dollar,” said Moonves.
Local broadcasting revenues of $649 million for the first quarter of 2016 were up 9% from $596 million in the same prior-year period. The growth was the result of an 18% increase at CBS Television stations, reflecting the Super Bowl broadcast, higher political advertising sales, and growth in retransmission revenues.
