In the company’s quarterly conference call, Joe Ianniello, EVP-CFO, said its Local Broadcasting unit is pacing up high single digits for 3Q, led by the TV stations, which are pacing up in the teens. That growth by the O&O TV group is “driven by political, auto and the entertainment category.”
After reporting its best quarter ever since its split from Viacom, CBS Corp. is on track for a strong 3Q as well. One unit helping to drive that growth is the O&O television station group.
The TV O&O’s posted 6% revenue growth in 2Q, leading the Local Broadcasting segment while radio revenues declined 2%.
In the company’s quarterly conference call, Joe Ianniello, EVP-CFO, said Local Broadcasting is pacing up high single digits for 3Q, led by the TV stations, which are pacing up in the teens. That growth by the O&O TV group is “driven by political, auto and the entertainment category.”
“Our Local Broadcasting segment is set to benefit from strong tailwinds over the coming quarters, starting with political in the third and fourth quarters — and then the Super Bowl in 1Q of next year,” Ianniello said in his guidance to Wall Street.
On the network side, President-CEO Les Moonves noted that Super Bowl 47 in February is likely to have the biggest television audience of all time. “We have already sold more than 80% of our advertising in the game, which is well ahead of where we were at this point three years ago — and the spots are selling at terrific prices,” he said. “Plus, we are looking forward to the unusual circumstance of broadcasting three huge events in primetime early next year. The NFC Championship game, the Super Bowl and the Grammys will all be broadcast on CBS in one four-week period during the first quarter and will provide a powerful kick-start to 2013.”
For some time now CBS Corp. has been telling investors that its revenues from retransmission consent payments to the O&Os and reverse compensation from its affiliates should hit a quarter billion dollars in 2012. On the 2Q call, Moonves said that $250 million figure is “a little bit conservative.”
Ianniello predicted that reverse comp will “cross the $100 million mark” in 2013. Also, nearly half of the retrans deals with MVPDs for the O&Os come up for renewal by the end of 2013 and the CFO is expecting them to be negotiated at higher payment levels.