Q2 2016 – CBS Earnings Call Summary

Below are my key takeaways from the CBS Q2 2016 Earnings Call on July 28:


Les Moonves, CEO, said ‘CBS continues to fire on all cylinders’.

Revenues for the quarter were $3,287MM, a 2% increase over the $3,219MM in Q2 2015. Unlike Cable Networks, Publishing and Local Broadcasting, who each saw a dip YoY, Entertainment revenues grew $162MM from last year’s time period to $1,947MM, which represents 59% of total revenue.

A $19MM drop in Affiliate and Subscription Fees YoY was more than made up for by the $128MM gain in Content Licensing and Distribution.  This was mainly due to international deals for the Star Trek library.  The CW and Netflix agreed to premiere the network’s shows 8 days after completion of each new season.

CBS claims to have had one of the strongest upfront in years.  Late Night has become more lucrative now that they own both the 11:30 and 12:30 time slots.  They will now own close to 80% of their schedule.

Showtime and CBS OTT services have about 2MM subs, evenly split.  The end goal is 8MM.

CBSN is growing and had 7MM streams during the week of RNC Convention.

The Grammys will be on CBS till 2026.

Simon and Schuster had best selling titles in Stephen King’s End of Watch and Brad Thor’s Foreign Agent.  Digital revenue now represents 23% of total revenue.

Financial Metrics:

  • Total Revenue: $3,287MM
    • Q2 2015: $3,219MM
  • Total Operating Income: $733MM
    • Q2 2015:$586MM
  • Total Net Earnings: $423MM
    • Q2 2015: $332MM
  • EPS: $0.94
    • Q2 2015: $0.68
  • Entertainment Revenue: $1,947MM
    • Q2 2015: $1,785MM
  • Cable Networks Revenue: $536MM
    • Q2 2015: $615MM
  • Publishing Revenue: $187MM
    • Q2 2015: $199MM
  • Local Broadcasting Revenue: $647MM
    • Q2 2015: $654MM
  • Corporate/Eliminations Revenue: -$30MM
    • Q2 2015: -$34MM
  • Advertising Revenue: $1,552MM
    • Q2 2015: $1,594MM
  • Content Licensing and Distribution: $943MM
    • Q2 2015: $815MM
  • Affiliate and Subscription Fees: $733MM
    • Q2 2015: $752MM

List of Key Properties:

Forward Thinking:

Links to Company Website:

Please comment below if there are data points from CBS you’d like me to include in their next Earnings Call Summary.

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