CBS Corporation Q1 Revenue Up 10%
Local Broadcasting Up 28%
May 3, 2016 at 1:34 PM (PT)
CBS CORP. exceeded analyst expectations by reporting Q1 revenue of $3.85 billion, up 10% over the same period last year. Local Broadcasting revenue also rose 28% to $206 million.
Credit for the growth largely goes to the SUPER BOWL and NFL broadcasts on its TV stations. Local Broadcasting's growth -- which includes radio -- is attributed to higher revenues as well as lower expenses as a result of restructuring activities the Company put in place to create efficiencies.
"CBS delivered a spectacular quarter as we continue to execute on our strategy of creating and distributing the content that audiences have to have," CBS CORP. Chairman/CEO LESLIE MOONVES said. "We had double-digit revenue growth, and we set records in all key profit measures, with EPS coming in above a dollar for the first time in our Company's history. Advertising was extremely strong, growing 31% overall and 49% at the CBS Television Network, where we are on track to win the season in adults 25-54 and adults 18-49, as well as in viewers for the 13th time in 14 years. Looking ahead, we are in a very enviable position for this year's Upfront, given the ongoing strength of our primetime lineup and a robust advertising marketplace. Plus, advertising is poised for even more growth in the back half of the year as political spending ramps up. Our high-margin, nonadvertising revenue streams are also on the rise, led by retransmission consent fees and reverse compensation, which are expected to surpass $1 billion this year. At the same time, our subscription streaming services, CBS All Access and Showtime over-the-top, are reaching new and younger audiences and are beginning to make a meaningful contribution to our results. As we grow our Company on the strength of our premium content, we are also moving forward with our initiative to separate our radio business, which will unlock value for shareholders and further diversify our revenue streams. So across the board, we are turning in record results while we position the Company for long-term growth. It clearly continues to be a terrific time to be a CBS investor."