CBS Second-Quarter Results Beat Forecasts

CBS (CBS.A, CBS.B) posted better-than-expected results for its fiscal second-quarter after markets shut on Thursday, helped by double-digit growth in revenue from affiliates and subscription fees as well as content licensing and distribution.

The New York-headquartered company posted revenue of $3.81 billion in the three months to June 30, up from $3.47 billion in the corresponding quarter of the prior year and ahead of the consensus estimate of analysts polled by Capital IQ for $3.71 billion.

The increase in sales was supported by growth across all of the company’s significant revenue streams. Advertising revenues grew 7%, led by CBS’ broadcast of the national semifinals and championship game of the NCAA Division I Men’s Basketball Tournament. Content licensing and distribution revenues were up 12%, mainly as a result of higher domestic licensing sales.

Affiliate and subscription fee revenues rose 13%, reflecting growth from the company’s direct-to-consumer streaming services and increases in fees from CBS Television Network affiliated stations and retransmission revenues, driven by virtual multichannel video programming distributors.

Adjusted earnings per share came in at $1.16, up 4% from a year earlier and also ahead of the Street’s mean projection of $1.13 per share.

“CBS delivered another outstanding quarter as we continue to execute on our long-term growth strategy, which is to invest in our premium content and direct-to-consumer streaming services,” Joe Ianniello, acting chief executive of CBS, said. “So with our strong quarterly results we’re reporting today and the prospects we have before us, we feel even better about our future as a global multiplatform premium content company.”

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