CBS reported across-the-board increases and a 32 percent surge in profit in its fourth quarter on Wednesday, as a double-digit increase in advertising revenue -- including the bump from political ads -- boosted earnings.
Overall, CBS reported fourth quarter revenue of $3.90 billion, up 11 percent over the same period in 2009. That included a 21 percent revenue jump for its local broadcast networks, 11 percent increase for the entertainment segment and 6 percent uptick at its cable arm.
The revenue gains were driven by a 12 percent increase in advertising during the quarter -- a sign that the advertising recovering that began to take hold last year is indeed sticking, especially for those Madison Avenue agencies with big budgets to spend on television.
CBS' licensing and distribution revenues were up 21 percent, driven by a syndication sale of "CSI: Crime Scene Investigation."
CBS' operating income ($770.1 million) was up 32 percent for the fourth quarter, as every single part of the company's business delivered double-digit profit growth.
"CBS' exceptional fourth quarter results capped an extraordinary year," a jubilant CBS Corp. chairman Sumner Redstone said during a conference call with investors. "Our strategy of producing and distributing the best content is proving to be highly successful in a multi-platform world. Our performance gets better and better and better."
Chief executive Les Moonves (pictured) added, "We expect these results to continue for a long, long time."
At CBS Television Networks, revenues ($2.02 billion) drove a fourth quarter profit of $249 million, up 31 percent. CBS Interactive, which is also included in this segment, saw advertising revenues grow 19 percent.
Full-year 2010 revenues ($7.39 billion) were up 6 percent on advertising gains in primetime and in CBS sports coverage -- including the telecast of Super Bowl XLIV and the 2010 NCAA Men's Basketball Championship. (The company told investors that first quarter 2011 revenues would be down without a Super Bowl -- and having to share March Madness with Turner -- but that costs would also be down, and profits would "be up considerably.")
Looking ahead to the next primetime television season, Moonves said, "We could almost play a pat hand."
"Any new show that does make it onto our schedule is going to have to be pretty extraordinary," he said, which means lower development costs and better profit margins.
Moonves wouldn't make a prediction on the May Upfronts, but said demand for ad time on CBS is currently exceeding inventory. "Our sales department calls us every day to yank promos and put ads in there," he said.
Revenues for CBS' cable networks -- which include Showtime and the CBS College Sports Network -- increased 6 percent during the quarter. Profits rose 10 percent.
The company's book publishing business -- Simon & Schuster -- increased 5 percent, with profits up 32 percent, with Glenn Beck's bestselling "Broke" goosing sales.
The results beat Wall Street's already high expectations, as CBS stock rose 2 percent on Wednesday in anticipation of the earnings.
