CBS Corp. Q1 Net Revenues Down 15%, Radio Down 7%
May 7, 2015 at 2:25 PM (PT)
CBS CORP. reported Q1 2015 Net revenue of $394 million, down nearly 15%, which it attributed in part to higher costs for sports and entertainment programming. Total revenue fell about 1.96% to $3.5 billion, compared with $3.57 billion in Q1 2014, with CBS Radio revenue falling 7%
Revenues of Local Broadcasting, which includes radio with TV, were $596 million for Q1 2015, a 5% decline from the same prior-year period. CBS Television Stations revenues were down 3%. The declines were blamed on lower advertising revenues, particularly from the entertainment and retail industries, which were partially offset by growth in affiliate and subscription fee revenues,
"There are tremendous opportunities afforded to companies that create premium programming, and Les and his team are capitalizing on all of them," CBS CORP. Exec. Chairman SUMNER REDSTONE said. "I am confident they have the strategy to keep CBS at the top of its game for many years to come."
"CBS turned in another quarter of record EPS, and our investment in world-class content will lay the foundation to drive future profits," Pres./CEO LESLIE MOONVES said. "We are set to close the season with four of the top-five new scripted series, all of which we have ownership in and can monetize in a growing number of ways. We will also win the season as the most-watched network in AMERICA, with a solid performance across all demographics at a time when others are facing ratings erosion. Looking ahead, we will continue to build upon our position of great strength with a new primetime lineup that we will announce next week, and we expect to be #1 in the Upfront marketplace as well. At the same time, our premium content is also driving growth in our nonadvertising revenue sources. We had terrific first-quarter results in streaming, both internationally and domestically, as well as retransmission consent and reverse compensation, which are steadily making their way toward $2 billion in revenue by 2020 if not before. In addition, our online news channel, CBSN, and our over-the-top service, CBS All Access, are exceeding expectations. We have already expanded CBS All Access to more than half of the country, and we expect it to be offered to 75% of all households by year's end. As we continue to find new ways to monetize our content, our investment in programming will pay off well into the future, and we remain as committed as ever to returning value to our shareholders."