• by Wayne Friedman , August 3, 2010

CBS Corp. rocketed to another strong financial period in revenues and profits for its second quarter, thanks to an improving advertising marketplace, higher license fees for its shows and more distribution revenues. 

CBS witnessed revenue climb 11% to $3.3 billion, with net income at $150 million versus $15.4 million in the second quarter of 2009. It was CBS' second quarter in a row of double-digit percentage revenue growth.

Local revenues -- virtually all from advertising -- grew 17%, with all entertainment revenues climbing 10% and its cable networks rising 12%. Overall advertising -- from the CBS network, local stations and other business -- rose 9% during the period.

Content deals and program licensing fees climbed 19%, as a result of continued deals from the "CSI" franchise, as well as newer shows, such as "NCIS: Los Angeles" and "The Good Wife."

Affiliate cable and subscription deals were 12% higher. On Monday, CBS Corp. announced a 10-year distribution deal with Comcast Corp., the largest U.S. cable operator. Sources estimate that CBS is getting around 50 cents a month per subscriber -- a number that could rise to $1 a cable subscriber during the contract.

"Incremental pricing is built in," says Les Moonves, president and CEO of CBS Corp., who did not elaborate during an earnings call with financial analysts. To date, he says, CBS has inked 60 retrans deals -- including pacts made in 2009 with Time Warner and Cablevision, as well as making revenue-sharing retrans deals with its local CBS affiliates.

Concerning the ad market, Moonves said the CBS network ended up selling about 80% of the advertising upfront inventory in June 2010, versus the 65% level in the previous July 2009 upfront ad market. CBS said the third-quarter scatter market continues to be strong -- up 30% over this year's upfront June 2010 pricing.

Going forward, the network says the ad market looks to have continued strength -- CBS being perhaps the purest and largest TV advertising media company play. "We expect to be one the biggest beneficiaries," says Joseph Ianniello, who serves as executive vice president and CFO for CBS Corp.

Internet businesses grew double-digit increases in terms of unique visitors across all the network's digital platforms: entertainment, news and sports. Moonves announced that CBS would be rolling out local Web sites -- the first in New York, CBSNewYork.com.

Outdoor and publishing businesses inched up in revenues -- outdoor at $456.3 million; publishing to $189.7 million. Outdoor operating income almost doubled $78.7 million from $44.7 million; publishing's operating income moved up $16.9 million from $10.3 million.