Multinational media company CBS Corporation posted its best-ever second quarter yesterday (Aug. 8), with growth across all significant revenue streams.
The company’s total revenue hit US$3.81 billion in Q2, up 10% from the $3.47 billion earned in the same period last year.
The bulk of earnings came from CBS’ entertainment division, clocking in at $2.74 billion (compared to $2.4 billion in Q2 2018), with cable networks, publishing and local media bringing in $5.62 million, $2.18 million and $4.23 million, respectively, all up from last year.
CBS entertainment includes CBS Television Network, CBS Television Studios, CBS Global Distribution Group, Network 10, CBS Interactive, CBS Sports Network and CBS Films, while cable networks include Showtime, Pop and Smithsonian. Simon & Schuster accounts for publishing.
Revenue types were advertising ($1.42 billion versus $1.33 billion last year), content licensing and distribution ($1.22 billion versus $1.1 billion last year), affiliate and subscription fees ($1.11 billion versus $9.9 million last year), and “other” ($480,000, down from $540,000 last year).
Increases in overall revenue were partially offset by investment in content and the higher costs associated with the growth and expansion of the company’s direct-to-consumer streaming services.
Meanwhile, operating income increased 5% to $695 million from $659 million year over year.
“CBS delivered another outstanding quarter as we continue to execute on our long-term growth strategy, which is to invest in our premium content and direct-to-consumer streaming services,” said Joe Ianniello, president and acting CEO of CBS Corporation, in a statement. “We achieved double-digit revenue growth in the second quarter, with increases in each of our three key revenue sources. Our direct-to-consumer services, CBS All Access and Showtime, continue to perform strongly, helping fuel a 13% increase in affiliate and subscription fee revenue for the quarter. And we remain on track to reach our goal of 25 million subscribers combined by 2022.
“Meanwhile, advertising grew 7%, and we have continued momentum as we head into the back half of the year, thanks to another robust upfront, with solid gains in pricing. Content licensing also had a very strong quarter, up 12%, as we continue to build a lucrative portfolio by creating must-have programming for our own content brands in addition to highly successful content for third-party platforms. So with our strong quarterly results we’re reporting today and the prospects we have before us, we feel even better about our future as a global multi-platform premium content company.”