CBS CBS Corp

By Tess Stynes 

CBS Corp. reported its second-quarter earnings rose 27% as revenue edged past expectations with a boost from content licensing fees for five Star Trek series abroad, along with growth in retransmission revenue.

The media company said earlier Thursday it would raise its quarterly dividend by 20% to 18 cents a share and boost its stock buyback plan to $6 billion. That marks a quarter of the company's market capitalization and replaces the previous stock buyback program, which had $1 billion remaining as of the end of June.

CBS reported revenue increased 2.1% to $3.29 billion, slightly above estimates of analysts polled by Thomson Reuters for revenue of $3.21 billion.

A year earlier CBS's revenue got a boost from distribution fees for its content from pay-TV operators and its own affiliates and the record-breaking pay-per-view telecast of the Floyd Mayweather-Manny Pacquiao fight. CBS's pay-TV channel Showtime was a partner with Time Warner Inc.'s HBO on the fight, which grossed more than $600 million. The year-earlier quarter also included the NCAA Tournament finals.

In the latest quarter, content licensing and distribution revenue rose 16%, driven mainly by the Star Trek licensing. Meanwhile, affiliate and subscription fees decreased 2.5% and advertising revenue declined 2.6%

Like other media companies, CBS has been aiming to reduce its reliance on advertising revenue to reflect shifts in how people consume television shows and movies. CBS previously has said it is less vulnerable to "cord-cutting" and unbundling of cable television packages, thanks to its investments for the future as a content company.

The media giant, whose holdings include cable networks and broadcast television stations, as well as publisher Simon & Schuster, also has over-the-top offerings such as CBS All Access and its Showtime stand-alone streaming service.

In prepared remarks, Chairman and Chief Executive Leslie Moonves said both of the over-the-top services continued to exceed expectations.

Investors on likely will be listening for any details regarding CBS's plans to take its radio division public in an initial public offering, part of the company's efforts to focus on its content strategy.

Mr. Moonves said CBS had its strongest upfront selling season in years, which will benefit the company beginning in late September when the new higher pricing takes effect.

During the quarter, retransmission consent and reverse compensation grew 44% and remain on track to surpass $1 billion in revenue this year, he said.

Over all, CBS reported a profit of $423 million, or 93 cents a share, down from $332 million, or 67 cents a share, a year earlier. The year-earlier period included restructuring charges of 7 cents a share, mostly related to the company's radio and television stations. Analysts polled by Thomson Reuters expected per-share profit of 86 cents.

--Anne Steele contributed to this article.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

July 28, 2016 17:01 ET (21:01 GMT)

CBS (NYSE:CBS)
Historical Stock Chart
From Mar 2024 to Apr 2024

CBS (NYSE:CBS)
Historical Stock Chart
From Apr 2023 to Apr 2024