Automotive spending, political advertising and higher retrans revenue all contribute. Overall, the company’s net earnings were up 8% to $427 million.
On Thursday, CBS Corp. reported results for the second quarter ended June 30, that included a 6% increase in CBS Television Stations revenues that the company said reflected increased spending by automotive manufacturers, higher political advertising and higher retransmission revenues, which were partially offset by lower advertising spending by the retail and financial services industries.
Its Local Broadcasting revenues (which includes CBS Radio) increased 2% in the quarter to $704 million from $691 million for the same prior-year period.
Entertainment division (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films, and CBS Interactive) revenue of $1.71 billion for the second quarter decreased 7% from $1.84 billion in the same prior-year period.
Last year’s second quarter benefited from the initial licensing of the company’s programming for digital streaming, the third-cycle domestic syndication sale of Frasier, and the semifinals of the NCAA Division I Men’s Basketball Championship, which aired during the first quarter of 2012 versus the second quarter of 2011. Some of the impact, CBS said, was offset by growth in high-margin retransmission revenues and higher international syndication revenues in the second quarter of 2012.
For the company as a whole, net earnings were $427 million for the second quarter of 2012, up 8%. The company’s earnings per share rose 12%, which was driven by the operating income growth and lower weighted average shares outstanding as a result of the company’s share repurchase program.
“Our record second quarter results reflect CBS’s underlying strength and the ongoing evolution of our business to encompass multiple sources of growing and recurring high-margin revenue,” said Leslie Moonves, president-CEO, CBS Corp. “The good news is, there’s so much more to come, and there are several important events just ahead. The U.S. presidential election will be a major factor in our second half results, and the London Olympics will give a considerable lift to our Outdoor business.
“And as we head into 2013, we will benefit from the Super Bowl, CBS’s success in the upfront marketplace, as well as from a number of hit shows that will be sold into syndication. Plus, we are containing our costs and reducing our interest expense, and as a sign of the confidence we have in our future, we recently announced a significant increase in the amount of capital we are returning to our shareholders both through our ongoing dividend and accelerated share buyback program. For all of these reasons, we’re confident 2012 will be a record year, and we will produce exceptional results in 2013 and beyond as well.”
Read the company’s report here.