CBS Corp. (NYSE: CBS) posted its second quarter earnings for the fiscal year and beat all estimates.
The company had posted a revenue of $3.26 billion, beating Thomson Reuters consensus of an expected $3.09 billion. CBS also posted an adjusted EPS of $1.04 compared to Thomson Reuters consensus of an expected $0.98 cents.
The better than expected reports were driven mainly by strong revenue growth and subscription fees, according to CBS. Net earnings were $58 million, which includes a noncash charge of $365 million in discontinued operations such as CBS Radio.
Entertainment revenues of $2.18 billion for the second quarter of 2017 were up 12 percent year over year from $1.95 billion. Cable Networks revenues of $571 million for the second quarter of 2017 increased 7 percent year over year from $536 million.
Affiliate and subscription fee revenues were up 16 percent, mainly driven by a 25 percent increase in retransmission revenues and fees and the company’s digital subscription service. Advertising revenues were up 4 percent, which were driven by the broadcast of the playoffs of the NCAA Division 1 Men’s Basketball tournament on its television network. Content licensing and distribution revenues were up 12 percent from a gain in television licensing sales, according to the earnings report.
“CBS delivered outstanding second quarter results while continuing to take a number of steps to achieve our long term financial goals,” said Leslie Moonves, Chairman and Chief Executive Officer, CBS Corporation
CEO Moonves also said that the skinny bundle deals with Google’s YouTube TV, Hulu, and fuboTV is paying off now and then announced that the company will be part of DIRECTV NOW.
The company now has a goal to expand many of its operating services into different countries such as Canada, France, India, Taiwan, and Hong Kong.
“So, 2017 is turning out to be a great year for the CBS Corporation even without the Super Bowl and political spending that we had in the prior year. And as we look ahead, we are positioned to have an even better year in 2018.” said Moonves.