Increases in political, retrans and carriage of Super Bowl 50 were drivers. Looking ahead, CEO Les Moonves says “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.” He adds that retrans is expected to surpass $1 billion this year.
By Staff
TVNewsCheck,
CBS Corp. on Thursday reported results for the first quarter of 2016 that included an 18% increase in revenue from CBS Television Stations compared to the first quarter a year ago.
The company said the increase reflected the broadcast of Super Bowl 50 on CBS, higher political advertising sales and growth in retransmission consent revenues.
Local Broadcasting operating income for the first quarter of 2016 increased 28% to $206 million from $161 million or the same prior-year period. The increase was driven by 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," said Leslie Moonves, chairman-CEO, CBS Corp. "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, non-advertising 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.
The company said the increase reflected the broadcast of Super Bowl 50 on CBS, higher political advertising sales and growth in retransmission consent revenues.
"CBS delivered a spectacular quarter as we continue to execute on our strategy of creating and distributing the content that audiences have to have," said Leslie Moonves, chairman-CEO, CBS Corp. "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, non-advertising 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."
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