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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.
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