CBS Q3 Profit Rises

(RTTNews) - CBS Corp. (CBS, CBS-A) Wednesday reported a surge in profit for the third quarter, as sales grew 11 percent reflecting increase in revenues from licensing TV shows and higher ad revenues.

Commenting on the results, Chief Executive Leslie Moonves said, "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."

The New York-based company's third-quarter profit rose to $494 million or $0.80 per share from $391 million or $0.60 per share last year.

CBS said its revenues for the quarter grew 11 percent to $3.63 billion from $3.27 billion a year ago.

Content licensing and distribution revenues grew 18 percent led by domestic licensing revenues from the first-cycle availabilities of NCIS: Los Angeles and The Good Wife.

Advertising revenues, which generates almost half of the revenues, advanced 4 percent to $1.86 billion on the strength of network advertising. Affiliate and subscription fee revenue grew 23 percent.

CBS, which is one of the most popular television networks in the U.S., has been expanding its non-advertising revenues, by demanding higher fees from cable networks to transmit its programs to subscribers. During the quarter, the media giant had blacked out for a about month in major markets of the Time Warner Cable (TWC) Inc., due to a dispute over hiked program fees demanded by CBS.

The company completed the sale of its outdoor advertising business in Europe and Asia for $225 million during the quarter, resulting in a gain of $147 million, which was partially offset by an after-tax charge of $110 million.

"…The separation of our Outdoor Americas business is expected to be completed next year. As a result, about half of our revenue will be coming from fast-growing, non-advertising revenue sources going forward," Moonves added.

CBS closed Wednesday's trading at $59.62, down $0.28 or 0.47%, on the NYSE. The stock, further dropped $1.12 or 1.88% in after-hours trade.