• by Wayne Friedman , November 4, 2010

TV advertising continues strong at CBS -- both at its networks and local TV stations.

CBS network scatter advertising cost-per-thousand viewer rates are now up more than 35% over the upfront pricing set last summer, according to Les Moonves, president and CEO of CBS Corp. -- a trend, he says, that looks to continue beyond the fourth quarter well into 2011.

For the third-quarter financial results, released on Thursday, overall company advertising was up 10% to $1.99 billion and affiliate and subscription fees climbed 15% to $828.2 million. The company said advertising sales at CBS Television Network grew 7% in the period.

Overall net earnings were up 133% to $441.2 million.

But CBS slipped 2% in overall revenues to $3.30 billion from $3.35 billion of a year ago. CBS says it had poor comparisons to the third quarter of 2009, where it gained from the big first-cycle syndication license fee sales of five TV shows: "Medium," "Criminal Minds," "Ghost Whisperer," "Everybody Hates Chris" and "Numb3rs". From this, its entertainment segment revenues declined 12% to $1.62 billion.

CBS also noted that local broadcasting was up 15% to $677.3 million with operating income climbing 49%; advertising sales climbed 25% from many key categories, automotive and financial services, and higher political advertising sales. Full-year advertising at its local stations is pacing up 20% over a year ago.

CBS Radio advertising revenues increased 9%.

Moonves noted that the big local broadcasting levels of political advertising that pushed out non-political advertising brands during the election period were not lost. Much of this non-political advertising will run in the fourth quarter of 2010 and beyond.

Many of CBS' businesses -- including TV -- will continue to be strong, according to company officials, in the fourth quarter and in 2011. CBS notes TV upfront sales in the summer were up in high single-digit percent price increases, with scatter now at big 35% increases. One caveat: There is a little less TV ad inventory in the scatter market for CBS, says Moonves, since the network sold more inventory than usual in the upfront market.

The company says its network programming costs are less than a year ago -- both in prime time and future sports costs, including the NCAA College Basketball Tournament.

CBS Interactive display advertising revenues grew 17% in the third quarter of 2010. Revenue at CBS cable networks, CBS College Sports Networks and Showtime Networks improved 12% to $370 million. Cable networks posted a 33% gain in operating income.

Publishing slipped some, down 6% to $217.7 million. But operating income gained 10% to $31.2 million. Its best-selling titles in the period included The Power by Rhonda Byrne and Obama's Wars by Bob Woodward.

Outdoor revenues gained 8% to $459.7 million from $424.9 million, and with operating income shot up 136%.

CBS continues to invest in its own company's stock. Cash on hand will help push CBS to start a $1.5 billion share repurchase program.