QUARTERLY REPORT

CBS TV Station 3Q Ad Revenue Jumps 25%

Better performing automotive and financial services ad categories as well as higher political ads drive the increase.

CBS Corp. today reported results for the third quarter ended Sept. 30 that included

an increase in CBS Television Stations advertising revenue of 25%, reflecting the improved ad marketplace across many key categories, including automotive and financial services, and higher political advertising sales.

“CBS’s strong momentum continues to grow across our businesses,” said Leslie Moonves, president-CEO. “Just as we saw last year, each quarter in 2010 is delivering higher profits than the quarter before. The operating environment continues to improve, and we are reaping the benefits of our lower cost structure, with margins that are approaching pre-recession levels.

“Plus, our content continues to flourish. In the first five weeks of the fall television season, we were number one in every key demo — a milestone that has only been achieved two other times since People Meters were introduced in 1987, and for the first time since 1997. All of our freshman shows are off to a very strong start, which sets us up for future growth through retransmission consent fees, domestic and international syndication, and the many new opportunities we’re seeing to monetize our leading content on emerging platforms.

“Meanwhile, the broadcast advertising marketplace remains strong both nationally and locally, with robust pacing increases across the board. As we close out the year, we believe that the fourth quarter will continue the trend of improving upon the quarter before it. And with the substantial free cash flow we consistently produce, we’ll keep investing in our businesses and returning value to shareholders while maintaining our discipline on expenses. We see a strong finish to 2010 and a very bright future ahead.”

For the company as a whole, revenues were $3.30 billion for the third quarter versus $3.35 billion for the same quarter last year, when the company benefited from first-cycle domestic syndication sales of five major titles. Underlying revenue growth, driven by10% growth in advertising and 15% growth in affiliate and subscription fees, was more than offset by the absence of these sales, resulting in a 2% decline in revenues during the quarter.

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Read the company’s report here.


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