CBS Corp. Q2 Revenues Down 5.3%, Radio Down 3%
August 7, 2014 at 3:25 PM (PT)
CBS CORP reported Q2 revenues of $3.19 billion, down 5.3% compared with Q2 2013 second quarter, when revenue was fueled by TV licensing and the semifinals of an NCAA Men's Basketball Championship. Local Broadcasting revenue dropped 4.7% to $665 million, with radio revenues down 3%.
Entertainment revenue fell 8.4% to $1.84 billion due to lower licensing and advertising sales, while Cable Networks essentially held steady at $516 million.
"CBS's strategy of producing premium content across its businesses and all around the world is the cornerstone of our continued success," said , CBS CORP. Exec. Chairman SUMNER REDSTONE said. "Regardless of the media landscape, and regardless of the means of distribution, great content will always be king. LES and his team are keenly aware of this fact, and I have full confidence in their ability to manage this Company through these times of change and opportunity."
"Our high-margin, fast-growing revenue streams continue to drive EPS, and they stand to become an even bigger factor in our growth going forward thanks to two recent major events," Pres./CEO LESLIE MOONVES said. "First, we completed the separation of CBS Outdoor, which makes us less dependent on advertising and allows us to sharpen our focus on our core content business. Second, we received a landmark SUPREME COURT ruling that removed any distraction from our ability to achieve $2 billion in retransmission consent and station affiliate fees in 2020. With so many ways to sell our content before us, we are constantly refilling the pipeline with new hits. Following up on the CBS Television Network's first place finish in MAY, we continue to be the most-watched network this summer, with an unprecedented amount of original programming. This fall, we'll have ownership in four out of five of our new series and more than 70% of our total lineup, positioning us well for continued success in content licensing. Of course, the biggest upcoming event on network television is THURSDAY NIGHT FOOTBALL, which will further strengthen our schedule and provide an unparalleled platform from which we can launch our new shows. Our strategy of producing more original programming is paying off at SHOWTIME as well, where we have premiered nine successful new shows in a row with more to come this fall. The strong confidence we have in our business is why today we have announced we are significantly expanding the value we return to shareholders. We are reloading the amount authorized under our share buyback program to $6 billion and raising our quarterly dividend by 25%. These actions once again demonstrate our enduring strength as a content company and our continued commitment to our investors."