ITV

Tag: CSTV Networks

  • CBS posts profit of $335 mn in fourth quarter

    CBS posts profit of $335 mn in fourth quarter

    MUMBAI: US media conglomerate CBS has recorded a profit in the fourth quarter from a year ago period.

    This included a major charge to write down the value of its television and radio businesses

    CBS reported net income of $335 million, or 43 cents per share, in the October-December period. A year ago, the company reported a loss of $9.14 billion, or $12 per share. That included a charge of $9.48 billion for the asset impairment.

    Operating income for the quarter is up 14 to per cent to $759.3 million. For the year revenues were $14.3 billion. This marked an increase of one per cent from the prior year, with increases of two per cent at television, eight per cent at outdoor and six per cent at publishing. This was partially offset by a decline of seven per cent at radio.

    For the year, television revenues increased by two per cent to $9.5 billion from 2005 primarily reflecting increases in television license fees and affiliate revenues partially offset by lower home entertainment and advertising revenues. Television license fees increased by 26 per cent primarily due
    to the 2006 availabilities of CSI: Miami, Frasier, Star Trek: Voyager and Without A Trace.

    This was partially offset by the absence of license fees from the prior year second- cycle cable renewal of Everybody Loves Raymond. Affiliate revenues increased eight per cent due to rate increases and subscriber growth at Showtime and the inclusion of the results of CSTV Networks since its acquisition in January 2006. Ad revenues decreased by one per cent from 2005 as higher political ad sales were more than offset by lower revenues from the absence of UPN and decreases at CBS Network.

    Home entertainment revenues decreased by 68 per cent principally due to the switch from self-distribution in 2005 to third party distribution in 2006.

    CBS executive chairman Sumner Redstone says, “CBS’ first year out of the gate was a great one. Our strong performance in the fourth quarter and full year of 2006 is the result of strategic vision and operational excellence. Leslie and his team are building our existing businesses to capitalise on the digital revolution and to position CBS for continued success well into the future.”

    CBS president and CEO Leslie Moonves says, “CBS’ fourth quarter results capped off a strong first year as a stand-alone company, Strong fourth quarter operating results at television, outdoor and publishing helped us surpass our key financial targets for the year.

    “Looking forward, we will continue to focus on running our core operations effectively; reshaping our portfolio into better-margin, higher-growth businesses; using the interactive opportunity to deepen and broaden our relationship with audiences; and receiving compensation for our content through retransmission consent agreements and new interactive platforms.

    ” I am confident that the company is well positioned to deliver long-term growth, strong cash flow, and increased value for our shareholders.”

  • CBS operating income up 4% to $646 million

    CBS operating income up 4% to $646 million

    MUMBAI: US media conglomerate CBS Corporation has reported results for the third quarter ended 30 September, 2006.

    CBS’ operating income rose by four per cent to $646 million led by television and outdoor. Net earnings from continuing operations went up by 26 per cent to $324 million.

    Revenues of $3.4 billion for the third quarter of 2006 were up slightly from the same quarter last year, as growth at outdoor and publishing was offset by a decline at radio, the shutdown of broadcaster and lower home entertainment revenues due to the switch from self-distribution in 2005 to third party distribution in 2006.

    For the nine months ended 30 September 30, 2006, revenues were $10.4 billion which marked an increase of one per cent from the same prior-year period, as growth at outdoor, television and publishing was partially offset by a decline at Radio. Results for the first nine months of 2006 reflected $24.0 million of expenses related to the UPN shutdown as well as the impact of stock-based compensation expense of $51.7 million versus $13.1 million for the nine months ended 30 September, 2005.

    For the quarter, television revenues of $2.2 billion decreased slightly from the prior year as growth in television license fee revenues and affiliate fees was more than offset by lower advertising and home entertainment revenues.

    Television license fees increased by seven per cent principally due to the domestic syndication sale of CSI: Miami and higher foreign syndication revenues. Affiliate fees increased six per cent due to rate increases and subscriber growth at Showtime and the inclusion of CSTV Networks since its acquisition in January 2006. Ad revenues decreased by three per cent primarily due to the shutdown of UPN in September of 2006 and the absence of the Primetime Emmy telecast in 2006, partially offset by strong political advertising sales at the television stations.

    Home entertainment revenues decreased by 35 per cent principally due to the switch from self-distribution in 2005 to third party distribution in 2006. The CW, a 50/50 per cent joint venture broadcast network with Warner Brothers Entertainment, was launched in September 2006 and has been accounted for as an equity investment in the third quarter of 2006.

    CBS executive chairman Sumner Redstone says, “CBS Corporation is right on track. “We remain committed to escalating shareholder value as we continue to drive our businesses forward. I am encouraged by the strategic vision Leslie and his team have put forth to capitalize upon the tremendous opportunities unfolding in the digital age.”

    CBS president, CEO Leslie Moonves says, “This was another strong quarter, posting solid profit increases in Television and Outdoor, generating significant free cash flow, and delivering the third of three dividend increases since the start of the year. In Radio, our plan to strategically reduce the number of markets in which we operate is well underway. We have signed agreements to sell 29 stations for a terrific value. We also believe that the growth we’re seeing in key formats such as Jack, Spanish and Talk bodes well for improved performance at Radio in 2007.

    ” Through innovative partnerships with YouTube, Yahoo, and many other key new media concerns, we’re aggressively pursuing opportunities that help us extend our world-class mass-appeal content to new digital platforms and channels and get paid for it. As a premier content company, we continue to be pleased with new technological developments that allow consumers to more easily enjoy our content, and extend our reach into the digital space.”

    The company expects to deliver low single-digit growth in revenues, mid single-digit growth in operating income and high single-digit growth in earnings per share.