Radio Revenues Fall 5% For CBS Corporation In Second Quarter
August 5, 2015 at 1:30 PM (PT)
CBS CORPORATION second quarter 2015 revenues rose 1% year-to-year to $3.22 billion, but advertising revenues fell 3% and CBS RADIO revenues dropped 5%. Adjusted operating income fell from $730 million to $641 million, which the company says reflected higher investment in programming and digital distribution initiatives. Adjusted net earnings from continuing operations fell from $418 milion to $365 million but per-share earnings rose from 72 to 74 cents per diluted share.
The Local Broadcasting category, which includes local radio and television stations, saw revenues decrease 2% to $654 million, the result of lower advertising revenues, including political spending from last year's midterm elections. Local Broadcasting operating income fell 8% to $198 million.
"CBS is at the center of the action during an extremely exciting time in media," said Executive Chairman SUMNER REDSTONE. "We continue to succeed as a result of our world-class content, and LES (MOONVES) and his team are positioning the Company to prosper in the quarters and years ahead."
"This quarter underscores the key steps we are taking to build out our long-term growth strategy," said President/CEO LES MOONVES. "Central to that strategy is the progress we're seeing with our fast-growing, nonadvertising revenue sources, and there's so much more to come as our investment in global content and new distribution pathways pays off. We are now on target to surpass our goal of $2 billion in retransmission consent and reverse compensation revenue by 2020—thanks to a series of recent deals that reset the value of our content in the marketplace. Additionally, the launch of SHOWTIME's streaming service and the rapid expansion of CBS ALL ACCESS are generating incremental revenue streams that will continue to grow in the years ahead. Of course, our premium content remains the cornerstone of our success, and I am confident this fall's new primetime lineup will lead us to another victory next season. In fact, our schedule is so strong that we achieved solid pricing increases and the highest rates overall in the advertising upfront, and we also expect healthy increases in the scatter market throughout the year. As we lay the groundwork for a lucrative 2016 and beyond, we are also holding the line on costs, and we remain as focused as ever on investing in the best content, enhancing our strong financial position, and returning value to shareholders."