CBS’s First-Quarter Earnings Up on Super Bowl Ad Revenue

said net income rose in the first quarter, buoyed by higher ad rates its flagship network won for its broadcast of Super Bowl XLVII. First-quarter revenue rose to about $4.04 billion, up from approximately 6 percent from the $3.8 billion it secured in the year-earlier period. Net earnings for the first quarter running through March came to $463 million, up 22 percent from $394 million a year earlier, CBS said. Get CBS News and alerts free to your inbox Learn More >> CBS said it notched an 8 percent increase in ad revenues thanks to the Super Bowl broadcast. Approximately two-thirds of the companys revenue hinges on advertising, and there have been concerns among Wall Street analysts that all the media companies with broadcast-network holdings would see declines in ad revenue due to ratings declines that have affected all the broadcasters during the current TV season. But CBS said revenue at its entertainment assets, which include the CBS network as well as CBS-owned local broadcast stations, rose 10%, to $2.54 billion, in the first quarter due to Super Bowl ad sales and growth in network affiliation fees. The increases were partially offset by having one less week of regular-season NFL games to telecast as well as the timing of the semifinals of the NCAA Division I Mens Basketball Championship, which aired during the second quarter in 2013 compared with the first quarter in 2012. The results show just how powerful a catalyst the Super Bowl is for media companies. Earlier Wednesday, Comcast Corp. said first-quarter revenue at its NBC Universal declined due to comparisions with the 2012 first quarter, when NBC broadcast the gridiron classic.
Source: http://variety.com/2013/tv/news/cbss-first-quarter-profit-up-on-super-bowl-ad-revenue-1200434914/

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