CBS Radio Revenue Up 9% in Q3
November 4, 2010 at 2:24 PM (PT)
CBS RADIO was a bright spot in CBS CORP.'s 3Q report. The conglomerate suffered a 2% decline in revenues during the quarter. even though there was a 10% growth in advertising and 15% growth in affiliate and subscription fees.
The Radio division enjoyed a 9% increase in advertising revenue, thanks to an improving advertising climate, which along with local TV's 25% growth, combined to give CBS' Local Broadcasting arm a 15% bump to $677.3 million. The revenue spurt prompted CBS board to authorize a stock buyback of up to $1.5 billion.
Speaking for the performance of the entire corporation, CBS CORP. Executive Chairman SUMNER REDSTONE said, "CBS' extraordinary performance this year continued in the third quarter. We are a Company focused on producing and distributing the best content, and today's financial results once again reinforce the wisdom of that strategy. CBS' ongoing strength is due to the hard work and business acumen of its management team, and our industry-leading content positions us for continued success for a long, long time."
"CBS's strong momentum continues to grow across our businesses," added Pres./CEO LESLIE MOONVES. "Just as we saw last year, each quarter in 2010 is delivering higher profits than the quarter before. The operating environment continues to improve, and we are reaping the benefits of our lower cost structure, with margins that are approaching pre-recession levels. Plus, our content continues to flourish. In the first five weeks of the fall television season, we were number one in every key demo - a milestone that has only been achieved two other times since People Meters were introduced in 1987, and for the first time since 1997. All of our freshman shows are off to a very strong start, which sets us up for future growth through retransmission consent fees, domestic and international syndication, and the many new opportunities we're seeing to monetize our leading content on emerging platforms.
"Meanwhile, the broadcast advertising marketplace remains strong both nationally and locally, with robust pacing increases across the board. As we close out the year, we believe that the fourth quarter will continue the trend of improving upon the quarter before it. And with the substantial free cash flow we consistently produce, we'll keep investing in our businesses and returning value to shareholders while maintaining our discipline on expenses. We see a strong finish to 2010 and a very bright future ahead."