• by Wayne Friedman , July 31, 2013

Following on the heels of NBC's double-digit revenue gains earlier in the day, CBS also posted similar strong results for its second-quarter reporting period.

Corporate-wide, CBS’ revenues grew 11% to $3.70 billion for the second quarter of 2013, driven by licensing agreements for digital streaming and international  syndication. Net earnings were up 10% to $472 million. CBS says advertising revenues were up 11% for the CBS Television network, with gains from CBS Interactive. The period benefited from timing of the semifinals of the NCAA Division I Men’s Basketball Championship (“NCAA Tournament”), which aired during the second quarter in 2013 versus the first quarter in 2012.  

NBC said it experienced a 13% hike in second-quarter advertising revenues.
 
Les Moonves, president and chief executive officer of CBS Corp., said during the company’s second-quarter earnings call that CBS gained “close to 8%” on the cost-per-thousand viewer [CPM] prices during the just-completed TV upfront advertising market, versus the upfront market of a year ago.

CBS’ affiliate and subscription fee revenues rose 18%, coming from a pay-per-view boxing event, higher retransmission revenues and fees that CBS Television Network affiliated television stations paid to the network. Overall entertainment revenues rose 18% higher to $2 billion -- driven by higher revenues from the licensing of television programming for digital streaming and international syndication, higher advertising revenues, and growth in network affiliation fees.

Cable networks added 16% in revenues to $518 million coming from a pay-per-view boxing event, higher revenues from the licensing of Showtime original series for digital streaming, and higher affiliate revenues. Local broadcasting revenues slipped 1% to $698 million, primarily from lower political advertising. CBS Radio revenues remained flat compared with the same prior-year period.

Concerning the recent wave of TV stations acquisitions, Moonves says: “The consolidation of TV stations only proves how valuable TV stations are. It’s only bodes well for the future... We have 27 of them.” Outdoor Americas, CBS’ Outdoor business, remained virtually the same at  $335 million from $334 million versus the same prior-year period.

Revenues in the U.S. grew 2%, driven by a 5% increase in the billboard business. CBS previously announced it was selling its outdoor advertising business in Europe and Asia for approximately $225 million. Publishing revenues of $189 million were identical to the second quarter of 2012. Digital book sales increased 39% from the same prior-year period and represented 29% of publishing’s total revenues.

Asked to speculate about the proposed media agency merger of Publicis and Omnicom, which will boost the combined media company to having over 40% share in media billings -- becoming the biggest global media agency -- Moonves says: “It’s too earlier to tell. We have great relations with both Omnicom and Publicis. We have good business with them.” Jo Ann Ross, president of advertising sales for CBS Television Network, said there was no great concern about the alliance .