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Friday, May 9, 2014

CBS 1Q Earnings: Local Radio Up 2 Percent

Strong ratings for shows like The Big Bang Theory and NCIS helped CBS to earn 78 cents per share in the first quarter on revenue of $3.86 billion, representing a bottom-line record though falling short of expectations on the top line.

THR reports the company, which reported its financial results after Wall Street's closing bell on Thursday, was expected to earn 75 cents per share, about $446 million, on revenue of $3.92 billion.

Net earnings rose to $468 million from $443 million a year ago.

"I'm very pleased to be reporting record first-quarter profits, driven once again by our fast-growing, higher-margin revenue streams," CEO Leslie Moonves said.

Revenue from CBS fell 5 percent compared to the same quarter a year earlier, though the entire difference can be attributed to the $280 million that the network's broadcast of Super Bowl XLVII brought in a year ago.

While the CBS "entertainment" segment logged a 9 percent decrease in revenue, -- due to the Super Bowl comparison as well as two fewer NCAA Tournament basketball games than a year ago -- the company's "cable networks" showed a 12 percent increase.

CBS said growth at cable networks was driven by revenue generated by Showtime, CBS Sports Network and Smithsonian Networks.

Local broadcasting revenue fell 2 percent during the quarter, and CBS again attributed the decline to the Super Bowl and NCAA basketball.  Meanwhile, Radio was up 2%, with double-digit increases in several categories, including travel, health care, telecom and Entertainment.

Moonves also predicted a "surge in political" spending will help CBS post strong results in the upcoming quarters because of what are expected to be contentious mid-term elections this year.

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