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indiantelevision.com Team
MUMBAI: US media conglomerate CBS has reported what it says is its strongest ever quarterly results, including revenue that exceeded $4 billion for the first time since it became a stand-alone company from Viacom in 2006. CBS also reported operating income of $800 million, which is an increase of 18 per cent.
CBS executive chairman Sumner Redstone said, "CBS has started the year with a terrific first quarter. Our premium content and multiplatform distribution strategy are leading to results that are better than ever. I am confident that this approach, under the guidance of Leslie and his team, will continue to propel CBS ahead in the years to come."
CBS president CEO Leslie Moonves said, "Across key financial measures-including revenue, OIBDA, operating income, and EPS-this was the most successful quarter in our company?s history. The value of our world-class content clearly continues to rise. In terms of big-event television, we had tremendous success during the quarter with the Super Bowl, the Grammys, the NCAA men?s basketball tournament, and more recently, the Academy of Country Music Awards. And our primetime lineup continues to dominate as well. The CBS Television Network is poised to win the season across all demographics, putting us in a very strong position as we prepare to unveil our new primetime lineup at the Upfront later this month."
"In the weeks that follow, we?ll be selling our schedule into an advertising marketplace that continues to improve, and we expect to once again lead the competition in pricing and volume. At the same time, our previously announced outdoor initiatives are well underway and, once complete, will solidify CBS as a company entirely centered on content." He further added.
"As the transformation of CBS continues, we are confident we will continue to create and distribute the best programming, drive earnings, and return value to our shareholders well into the future." He concluded.
The company posted its highest quarterly results in the following key metrics:
- Revenue of $4.04 billion
- Operating income before depreciation and amortisation("OIBDA") of $916 million
- Operating income of $800 million
- Diluted earnings per share from continuing operations of $.73
Revenues of $4.04 billion for the first quarter of 2013 increased by six per cent from $3.80 billion in the same prior-year period; this growth was led by an eight per cent increase in ad revenues, which was driven by the broadcast of Super Bowl XLVII on CBS. The timing of the semifinals of the NCAA Division I Men?s Basketball Championship, which aired during the second quarter in 2013 versus the first quarter in 2012, as well as one less week of NFL games broadcast during the quarter, partially offset the ad growth.
Affiliate and subscription fee revenues rose by 14 per cent driven by 62 per cent higher re-transmission revenues and fees from CBS Television Network affiliated television stations as well as growth at Cable Networks. Content licensing and distribution revenues were down by one per cent primarily because of the timing of theatrical releases and a significant syndication sale in 2012. At the same time, content licensing and distribution revenues benefited from a 19 per cent increase in streaming revenues.
OIBDA of $916 million increased by 15 per cent in the first quarter of 2013 from $796 million for the same prior-year period; operating income of $800 million increased by 18 per cent from $677 million in the first quarter of 2012, and the operating income margin rose two percentage points, to 20 per cent. The OIBDA and operating income growth and
margin expansion were primarily driven by higher affiliate and subscription fee revenues and the broadcast of Super Bowl XLVII on CBS.
Net earnings from continuing operations were $463 million for the first quarter of 2013, or $.73 per diluted share, up from $394 million, or $.59 per diluted share, for the same prior-year period.
Free cash flow was $576 million for the first quarter of 2013, compared with $620 million for the first quarter a year ago. The company generated operating cash flow from continuing operations of $610 million for the first quarter of 2013 versus $655 million for the first quarter of 2012, primarily reflecting increased investment in television content.
Entertainment (CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Films, and CBS Interactive) Entertainment revenues of $2.54 billion for the first quarter of 2013 increased by 10 per cent from the same prior-year period, driven by higher ad revenues from the broadcast of Super Bowl XLVII on CBS as well as growth in network affiliation fees. These revenue increases were partially offset by one less week of NFL games during the first quarter of 2013 as well as the timing of the semifinals of the NCAA Division I Men?s Basketball Championship, which aired during the second quarter in 2013 versus the first quarter in 2012.
Entertainment OIBDA for the first quarter of 2013 increased by 17 per cent to $480 million from $411 million for the same prior-year period, principally reflecting the segment?s revenue growth Cable Networks: (Showtime Networks, CBS Sports Network, and Smithsonian Networks). Cable Networks revenues for the first quarter of 2013 increased by six per cent to $478 million from $452 million for the same prior-year period; the growth was driven by higher affiliate revenues from increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix)
Cable Networks OIBDA for the first quarter of 2013 increased by 11 per cent to $231 million from $209 million for the same prior-year period, primarily reflecting the growth in Cable Networks revenues, which were partially offset by higher programming costs.
