CBS Reports Strong Fourth Quarter Earnings Report

Revenue rose to $3.91 billion from $3.68 billion.

The company’s revenue from advertisements increased only one percent in the last quarter but the network ad growth earned eight percent. The Local Broadcasting segment owns 30 broadcast television stations; owns and operates 117 radio stations in 26 US markets and related online properties; and operates local Websites in various USA markets, which combine the company’s television and radio local media brands online to offer the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews for local community.

Publishing, consisting of Simon & Schuster, grew revenue by 8 percent to $233 million with Crippled America by Donald Trump and The Bazaar of Bad Dreams by Stephen King both becoming bestsellers in the quarter. The top line was fuelled by a 16% improvement in content licensing and distribution revenues, 13% growth in affiliate and subscription fees, and a 1% rise in advertising revenues.

After the Iowa and New Hampshire primaries, it remains a wide open race, which means candidates will keep spending money on TV ads.

The company said the revenue growth was driven by a 16 percent increase in content licensing and distribution revenues, reflecting higher global television licensing sales. Operating income fell 20.6% to $232 million with revenues of $719 million, down 8.4%. Lower political advertising also contributed.

CBS on Thursday became the second media company this week to report a record-breaking fourth quarter only to see Wall Street sell off its shares.

Adjusted earnings from continuing operations were $436 million or $0.92 per share for the quarter.

Cable Networks’ revenue improved 13% to $562 million, benefitting from higher revenues attributable to global licensing of the Showtime original series.

Revenue, up 6.2 percent from the year-earlier period, to $3.9 billion, beat forecasts. Within that, television revenue declined 11% compared to a 2014 that benefited from strong political spending associated with midterm elections.

During 2016, All Access should begin contributing significant revenues to CBS he said.