CBS Corporation Q3 Revenues Fall, Income Up

Q3

CBS CORP. third-quarter 2015 overall revenues fell from $3.37 billion to $3.26 billion year-to-year, attributed to the timing of television licensing sales and decreases in lower-margin revenues, but the company noted increases in network advertising and affiliate and subscription fees, including a 50% jump in retransmission consent payments. Net earnings from continuing operations were up from $400 million to $426 million (74 to 88 cents/diluted share).

CBS RADIO revenues declined 6%, reflecting owning fewer stations, a drop in political ads, and "continued softness in the radio advertising marketplace." Radio's slippage contributed to an overall 6% decrease in revenues for the Local Broadcasting division (radio and TV), which fell to $638 million. CBS TELEVISION STATIONS revenues declined 7%.  The division's operating income fell 9% to $174 million.

"Thanks to the strength of our great content, CBS continues to have a winning hand," said Exec. Chairman SUMNER REDSTONE. "LES (MOONVES) and his team are capitalizing on all of the opportunities before us, and I'm confident they are setting the Company up for continued, long-term growth."

"During the third quarter, we once again grew our profit and EPS while continuing to increase our investment in content and new distribution services," said Pres./CEO LESLIE MOONVES. "I'm particularly pleased with the gains we're seeing in network advertising, including underlying ad growth in the third quarter and even better pricing here in the fourth. Plus, having sold less inventory in the Upfront, we stand to benefit throughout this television season as we sell our #1 network in a very robust scatter marketplace. Add to that CBS's broadcast of SUPER BOWL 50 in FEBRUARY and the upcoming presidential election, you can see why we feel very good about advertising in 2016. At the same time, our nonadvertising revenue continues to grow even faster, led by retransmission consent and reverse compensation, which were up 50% in the third quarter and are well on their way to exceeding $1 billion next year. Looking ahead, as viewers increasingly want to access and pay for content in new ways, we see continued increases in subscription revenue from our in-house over-the-top services at CBS and SHOWTIME, as well as those from outside distribution partners. The good news is, no matter how quickly the industry changes -- from big bundles to 'skinny' ones to a la carte -- CBS is positioned to succeed."

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