Super Bowl Vaults CBS Q1 Earnings Above Analyst Expectations

Company posts earnings per share of $1.02 on revenue of $3.85 billion

cbs earnings
CBS' logo on the iconography of a dollar bill

CBS Q1 earnings for 2016 were well above analyst expectations, coming in at $1.02 per share on revenue of $3.85 billion, according to data released on Tuesday.

Revenues for the first quarter of 2016 increased 10 percent compared to the same prior-year period. Advertising revenues grew 31 percent, driven by the CBS Television Network’s broadcast of Super Bowl 50 and additional NFL games, as well as a 12 percent increase in underlying network advertising.

Analysts had projected that the company would post earnings $0.94 per share on revenue of $3.83 billion for the fiscal period ending in March.

In the same quarter last year, CBS posted earnings of 78 cents per share and revenue of $3.5 billion. In Q4 of 2015, CBS posted $3.9 billion in revenue, beating expectations of $3.79 billion for the best quarter in company history. In addition, the company posted earnings per share of $0.92 at that time, in line with analyst expectations.

“CBS delivered a spectacular quarter as we continue to execute on our strategy of creating and distributing the content that audiences have to have,” said Leslie Moonves, chairman and CEO of CBS Corporation. “We had double-digit revenue growth, and we set records in all key profit measures, with EPS coming in above a dollar for the first time in our Company’s history. Advertising was extremely strong, growing 31 percent overall and 49 percent at the CBS Television Network, where we are on track to win the season in adults 25-54 and adults 18-49, as well as in viewers for the 13th time in 14 years.”

Affiliate and subscription fee revenues rose 15 percent, driven by 42 percent growth in retransmission revenues and fees from CBS Television Network affiliated stations, as well as revenues from new digital distribution platforms. Content licensing and distribution revenues declined 29 percent.

Net earnings of $473 million for the first quarter of 2016 rose 20 percent from $394 million for the first quarter of 2015, and adjusted net earnings of $474 million grew 21 percent from $391 million in the same prior-year period.

Back in February, Moonves was named chairman of CBS Corp, replacing executive chairman Sumner Redstone as the head of the company’s board.

The move came amid growing concerns about the health of the elder Redstone, who is 92. Redstone now serves as chairman emeritus of Viacom, while the legal petition by the mogul’s ex-girlfriend to have herself reinstated as his healthcare agent continues.

Note: A previous version of this story indicated that Sumner Redstone was still the executive chairman of Viacom. TheWrap apologizes for the error. 

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