Media company CBS Corp. (CBS, CBS-A) reported Wednesday a profit for the first quarter that increased from last year, reflecting improved margins and revenue growth amid an 8 percent increase in advertising revenues. Both earnings per share and quarterly revenues topped analysts' expectations.
The company noted that it has reported its strongest ever quarterly results, including revenue that exceeded $4 billion for the first time since CBS became a stand-alone company in 2006.
"CBS has started the year with a terrific first quarter. Our premium content and multiplatform distribution strategy are leading to results that are better than ever. I am confident that this approach, under the guidance of Leslie and his team, will continue to propel CBS ahead in the years to come," Executive Chairman Sumner Redstone said in a statement.
The New York-based company reported net earnings of $443 million or $0.69 per share for the first quarter, higher than $363 million or $0.54 per share in the prior-year quarter.
Net earnings from continuing operations for the quarter grew to $463 million or $0.73 per share from $394 million or $0.59 per share in the year-ago quarter.
On average, 27 analysts polled by Thomson Reuters estimated earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 6 percent to $4.04 billion from $3.80 billion in the same quarter last year, and topped twenty-five Wall Street analysts' consensus estimate of $4.02 billion.
The revenue growth was led by an 8 percent increase in advertising revenues, which was driven by the broadcast of Super Bowl XLVII on the CBS Television Network.
The company noted that it had tremendous success during the quarter with the Super Bowl, the GRAMMY's, the NCAA men's basketball tournament, and more recently, the Academy of Country Music Awards.
CBS, which is one of the most popular television networks in the U.S., has been expanding its non-advertising revenues, partly from newly signed streaming, retransmission consent, and reverse compensation deals.
Affiliate and subscription fee revenues rose 14 percent, driven by 62 percent higher retransmission revenues and fees as well as growth at Cable Networks, while content licensing and distribution revenues were down 1 percent.
Entertainment revenues grew 10 percent to $2.54 billion, cable Networks revenues increased 6 percent to $478 million, and local broadcasting revenues improved 3 percent to $638 million
from last year.
Meanwhile, publishing revenues decreased 3 percent year-over-year to $171 million, and outdoor Americas revenues declined to $281 million from last year.
Operating margin for the quarter improved 300 basis points to 20 percent from last year's 18 percent.
"At the same time, our previously announced Outdoor initiatives are well underway and, once complete, will solidify CBS as a company entirely centered around content. As the transformation of CBS continues, we are confident we will continue to create and distribute the best programming, drive earnings, and return value to our shareholders well into the future," President and CEO Leslie Moonves stated.
CBS closed Wednesday's regular trading session at $46.40, up $0.62 or 1.35% on a volume of 7.93 million shares. The stock gained a further $0.60 or 1.29% in after-hours trading.
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