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.

MUMBAI: US media conglomerate CBS has partnered with AXS TV, which airs live events from the worlds of music and pop culture.

The multi-year commitment from CBS provides for promotion and access to content and shoulder programming opportunities, in addition to strategic support.

The announcement was made by CBS president, CEO Leslie Moonves, AEG president, CEO Tim Leiweke and Mark Cuban, who will continue to lead the network in his current role as AXS TV president, CEO. Terms of the transaction are not being disclosed.

Moonves said, ?CBS is happy to provide AXS TV with live event content as the basis of this partnership. This is an innovative way to use our tent pole programming to gain more ownership in the cable network business. AXS TV will now serve as a terrific complement to our existing broadcast television entertainment programming.?

Cuban said, ?CBS brings the industry?s best and most respected resources and experience to AXS TV which will accelerate our growth and realisation of our vision that, ?The future of TV is TV?.

Launched in July 2012, AXS TV is a joint venture among Mark Cuban Companies, AEG, Creative Artists Agency (CAA) and Ryan Seacrest Media, and currently has 38 million subscribers to the service.

Originally available in high definition, AXS TV is now also available in a standard definition format.

MUMBAI: US media conglomerate CBS has posted operating income of $771 million in the third quarter of this fiscal, up 10 per cent. Revenues were $3.4 billion, up by two per cent, while OIBDA grew seven per cent to $898 million.

Revenue growth was led by an eight per cent increase in content licensing and distribution revenues, which were driven by higher domestic and international television license fees. Affiliate and subscription fee revenues rose by 12 per cent, reflecting growth at Cable Networks, higher retransmission revenues, and fees received from CBS Network affiliated television stations.

Advertising revenues were down by three per cent, primarily driven by lower advertising for CBS Radio, the impact of foreign exchange rate changes, and the impact of pre-emptions for the Republican and Democratic national conventions on six nights of the CBS Television Network?s primetime schedule.

CBS Corporation executive chairman Sumner Redstone said,"CBS has continued its remarkable run with yet another record quarter. Our world-class content and multiplatform distribution strategy remain at the center of our success."

CBS Corporation president, CEO Leslie Moonves said,"The transformation of CBS continues as reflected in these record third quarter results. We have taken a number of significant steps during the last several months to execute our strategy and grow the company. These include three major retransmission consent agreements, an important reverse compensation deal, new international and domestic streaming contracts, and the sale of our two new hit dramas, ?Vegas? and ?Elementary?, into international syndication. As we continue to take actions like these, we are increasing our recurring revenue from non-advertising sources and setting ourselves up for even more record results in the future. Going forward, we will continue to expand the ways we achieve value for our content, and we are confident we will hit our goal of a record 2012 and an even better 2013."

The growth in OIBDA and operating income was primarily driven by higher revenues and increased profits on television licensing revenues.

Free cash flow was $163 million for the third quarter of 2012, compared with $29 million for the third quarter a year ago. Free cash flow for the third quarter of 2012 included payments of approximately $60 million associated with the early extinguishment of debt, primarily for make-whole premiums. As of 30 September, 2012, the company?s debt outstanding was $5.93 billion and its cash balance was $947 million, which was $287 million higher than 31 December 2011.

Entertainment revenues of $1.68 billion for the third quarter of 2012 grew by three per cent from $1.63 billion in the same prior-year period, driven by increased domestic and international television license fees and higher retransmission revenues.

Advertising revenues were down from last year?s third quarter, primarily resulting from the broadcast of summer programming against the highly rated 2012 Summer Olympics and the impact of pre-emptions for the Republican and Democratic national conventions on six nights of the CBS Television Network?s primetime schedule.

Entertainment OIBDA for the third quarter of 2012 decreased 5 per cent to $384 million from $405 million driven by costs associated with the timing of theatrical releases and the mix of revenues.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks) revenues for the third quarter of 2012 increased by four per cent to $436 million from $420 million for the same prior-year period driven by higher affiliate fee revenues, which reflect increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks. Licensing revenues were down from the third quarter of 2011 reflecting the timing of digital streaming revenues. For the first nine months of 2012, streaming revenues increased significantly from the same prior-year period.

Cable Networks OIBDA for the third quarter of 2012 grew 12 per cent to $227 million from $203 million for the same prior-year period. This increase reflects the growth in affiliate revenues.

MUMBAI: This could be a game changer move if it goes through. Leslie Moonves, the Chief Executive of CBS Corporation, has confirmed that the American media major would be interested in buying the film and TV studios business of Sony Corporation if it‘s put up for sale.

Moonves, who recently extended his contract with the company till 2017, however cautioned that there were no specific plans right now to do a deal.

"We love our current portfolio, but as a content company, we would want to look at them," Moonves told Wall Street Journal in an interview.

He also said that CBS is prepared to distribute its content directly to viewers should there be disruption in its business model due to a la carte pricing and cord-cutting.

"We like the system now and we are being adequately paid for it," Moonves said. "But if the universe changes and they [viewers] want us to bring the content directly to them, then we can."

The media landscape of the US has changed considerably with the emergence of new technologies and platforms.

Even as online video is consistently eating into the viewership of traditional TV, pay TV operators like CBS are vying for a bigger share of subscription revenues which is leading to tensions between TV networks and pay-TV distributors.

Moonves believes that eliminating low-rated channels could be a solution for television operators if they want to improve bottom-line which is increasingly coming under pressure due to rising content costs.

"The truth is that he who has the most eyeballs wins. If that means eliminating some of the smaller channels, then so be it," he added.

Widely credited for turning around the CBS when the network was languishing at the bottom Moonves had joined CBS in 1995 as president of entertainment. He will complete 22 years at the media conglomerate at the end of his new five-year contract.

As per the SEC filing, Moonves will receive $3.5 million in annual salary with a $12 million target bonus. He will pocket $14.5 million in restricted stock on top of the restricted stock that he and other top execs receive each year.

MUMBAI: US media conglomerate CBS has posted net earnings of $427 million for the second quarter ended 30 June 2012, up eight per cent.

Operating Income was $769 million, an increase of five per cent.

CBS executive chairman Sumner Redstone said, "CBS?s content continues to fuel the success of this great company. In a world where greatprogramming commands premium pricing, we continue to hit on allcylinders. I am extremely pleased with our terrific second-quarter results, and I am confident that Leslie and his management team willbuild on our momentum in the quarters and years to come."

CBS expects to show stronger performance in the second half of the year due to the US presidential elections and the Olympics. The prospects for 2013 also look good as the network has Super Bowl.

CBS president, CEO Leslie Moonves said, ?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.?

Two factors in the second quarter of 2011 ? the Company?s initial multiyear digital streaming agreement (under which dozens of the Company?s library titles were first made available for streaming) and the semifinals of the NCAA Division I Men?s Basketball Championship (which aired during the first quarter in 2012) ? had an impact on the revenue comparison.

Second quarter 2012 revenues came in at $3.48 billion compared with $3.59 billion for the same quarter a year ago. Some of the impact was offset by growth in high-margin affiliate and subscription fee revenues, while underlying advertising revenues for the second quarter of 2012 reflected a steady marketplace. In addition, the OIBDA margin improved two percentage points, to a record 26 per cent and the operating income margin expanded two percentage points, to 22 per cent, in the second quarter of 2012.

Those increases, as well as the company?s record performance in the three key metrics mentioned above, reflect a higher profit margin on 2012 television licensing revenues as well as the growth in high-margin affiliate and subscription fees.

Free cash flow was $558 million for the second quarter of 2012, compared with $646 million for the second quarter a year ago. For the first half of 2012, free cash flow was $1.17 billion compared with $1.50 billion for the first half of 2011, reflecting higher investment in content (primarily television programming) and higher income tax payments. The company generated cash flow from operating activities of $1.26 billion for the six months ended June 30, 2012, versus $1.59 billion for the comparable prior-year period.

Entertainment

Entertainment (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films, and CBS Interactive) revenues of $1.71 billion for the second quarter of 2012 decreased 7 per cent 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 was offset by growth in high-margin retransmission revenues and higher international syndication revenues in the second quarter of 2012.

Cable Networks

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks) revenues for the second quarter of 2012 increased by eight per cent to $446 million from $413 million for the same prior-year period. The results were driven by higher affiliate revenues, which reflect increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks, as well as higher licensing revenues from the digital streaming of Showtime original series.

Outdoor

Outdoor revenues for the second quarter of 2012 decreased by two per cent to $481 million from $490 million for the same prior-year period, driven by the unfavorable impact of foreign exchange rate changes. In constant dollars, revenues increased 1 per cent from the second quarter of 2011.

Revenues for the Americas (which includes North America and South America) increased by two per cent in constant dollars for the second quarter of 2012, principally driven by growth in the US billboards and displays businesses, partially offset by the impact from the nonrenewal of the Toronto transit contract.

Revenues for Europe increased by one per cent in constant dollars, primarily reflecting higher advertising sales associated with the 2012 Summer Olympics in London. Some of this increase was offset by weakness in the European economy and the nonrenewal of certain contracts.