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Earnings: CBS Meets Q3 Expectations After Time Warner Cable Fight

Les Moonves hails an emphasis on content

CBS Corp. emerged from its third-quarter fight with Time Warner Cable matching Wall Street’s earnings expectations.

CBS CEO Les Moonves told investors in a conference call that the success reflected the network’s emphasis on content. That focus includes the strong summer ratings for “Under the Dome,” which CBS owns.

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He also hailed the arrival of dynamic ad insertion — a technology TheWrap reported on last month that will allow new ads to be inserted into shows watched on DVRs.

Revenues grew 11 percent from the third quarter of 2012 to $3.63 billion, thanks in part to domestic licensing revenues from the first cycles of “NCIS: Los Angeles” and “The Good Wife” becoming available.

Also read: Earnings: Time Warner Cable Shed 306K Video Customers Amid CBS Dispute, But Beats Earnings Expectations

Advertising revenues increased 4 percent, driven by a 13 percent increase in network advertising. OIBDA increased 4 percent to $941 million.

Net earnings from continuing operations were $469 million, up 12 percent from the prior-year period. Diluted earnings per share from continuing operations were $.76 — in line with analysts’ expectations — and grew 19 percent.

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Time Warner Cable said last week that it lost 306,000 subscribers during the quarter that included its carriage dispute with CBS — but it still beat earnings estimates. CBS stations went dark for more than a month on Time Warner Cable in major markets.