CBS TV Stations’ 3Q Revenue Falls 6%

CBS Corp. on Wednesday reported its best-ever third quarter results in the period ended Sept. 30.

“CBS’s third quarter proves once again why content is king,” said Sumner Redstone, executive chairman, CBS Corp. “Our programming is becoming more valuable all the time as we continue to take advantage of the ever-expanding multiplatform world.”

“Our record third-quarter results — driven by double-digit revenue growth — are the continuation of a phenomenal first half, and provide more clarity on what will be another amazing full year for the CBS Corporation,” said Leslie Moonves, president-CEO.

He added: “We continue to launch new hits — from Under the Dome and Ray Donovan this summer to the top three new comedies on television this fall. Through our studio, we have an ownership interest in most of these shows, meaning that their success not only boosts our base business, but also our newer revenue streams as well, including very strong growth in retransmission consent fees, reverse compensation, international sales and all the opportunities afforded to us by exploding advances in technology. Plus, we are working toward a new advertising model in which we get paid for the significant, additional viewing that is increasingly taking place after a show first airs.”

Local Broadcasting revenues for the third quarter of 2013 decreased 3% to $641 million from $661 million for the same prior-year period. The decrease was the result of lower political advertising revenues compared with 2012, which benefited from the U.S. presidential election, and was partially offset by strong growth in retransmission revenues. CBS Television Stations revenues decreased 6%; however, non-political revenues were comparable with the third quarter of 2012. CBS Radio revenues increased 1%, reflecting the benefit of the new CBS Sports Radio network.

Entertainment revenues of $1.88 billion for the third quarter of 2013 increased 12% from $1.68 billion for the same prior-year period. This increase was the result of higher domestic licensing revenues, led by the first-cycle availabilities of NCIS: Los Angeles and The Good Wife, as well as growth in advertising revenues and network affiliation fees. The increase in advertising revenues was driven by the CBS Television Network, which was up 13%, and CBS Interactive.

Cable Networks revenues for the third quarter of 2013 increased 37% to $596 million from $436 million for the same prior-year period. This growth was driven by revenues from the Floyd Mayweather pay-per-view boxing event, higher revenues from the licensing of Showtime original series, primarily Dexter, and higher affiliate revenues, which reflect increases in rates and subscriptions at Showtime Networks and Smithsonian Networks.

For the company as a whole, revenues of $3.63 billion for the third quarter of 2013 grew 11% from $3.27 billion in the same prior-year period, driven by increases in each of the company’s major revenue types. Content licensing and distribution revenues grew 18%, led by domestic licensing revenues from the first-cycle availabilities of NCIS: Los Angeles and The Good Wife.

Advertising revenues increased 4%, driven by the strength of network advertising, which grew 13%. Affiliate and subscription fee revenues rose 23%, principally reflecting the benefit from a Floyd Mayweather pay-per-view boxing event, as well as steady growth from retransmission revenues and fees from CBS Television Network-affiliated television stations.