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$CBS signed an agreement with Fox to introduce Showtime to Southeast Asia. The company also signed a deal with Hotstar, to introduce Showtime brand to India for the first time. These two deals are said to begin a new recurring revenue stream for Showtime.
$CBS posted 9% growth in its 2Q17 revenue to $3.26Bil, helped by content like Twin peaks and NCAA basketball tournament. Net earnings during the quarter fell to $58MM, or $0.14 per share, compared to $423MM, or $0.94 per share during prior year period. Excluding items, $CBS earned $1.04 per share, up 12% from 2Q16.
Media firm $CBS.A $CBS has priced a debt offering of $400MM of 2.5% senior notes due 2023 and $500MM of 3.375% senior notes due 2028. The sale of the notes is expected to close on July 3, 2017. The company intends to use the proceeds from the offering to repay debt and for general corporate purposes including repayment of short-term borrowing.
Being a content maker, $CBS said that it wants to sell the content and it likes to make different deals with $FB and $TWTR. The company added that it already has got some existing deals with $FB and $TWTR. $CBS believes that the combination with Facebook and Twitter will be a new source of revenue for it.
For $CBS in 1Q17, Cable Networks revenues rose 3% to $543MM and Publishing revenues jumped 11% to $161MM. Local Media revenues fell 9% to $409MM, while corporate expenses for the quarter were cut to $79MM from $84MM a year ago. CBS had a free cash flow of $651MM for the quarter.
In 1Q17, total revenues for $CBS slumped almost 7% to $3.34Bil, with its CBS Television Network broadcasting Super Bowl 50 and an additional National Football League playoff game. The media giant slipped to a net loss of $252MM or $0.61 per diluted share, from last year's earnings of $473MM or $1.03 a share.
$CBS is investing in content and is spending about 18% more in this area compared to a few years ago. The company believes the best use of capital would be to have a hit owned series and that these returns are significantly better than any other use of cash.
During 4Q16, $CBS’ Entertainment segment revenues totaled $2.39Bil compared to $2.46Bil in 4Q15. In Cable Networks, revenues were $501MM. In Publishing, revenues totaled $209MM, down 10% from 4Q15. In Local Media, revenues were $526MM, up 16% versus 4Q15.
In 4Q16, $CBS’ total advertising revenue was down 3% and underlying network advertising was down 2%. Licensing and distribution decreased to $893MM from 4Q15. Affiliate and subscription fee revenue was up 13% with retransmission and reverse comp up 25%.
$CBS entered into an agreement to merge CBS radio with a with a subsidiary of Entercom Communications Corp, on Feb. 2, 2017. In connection with the transaction, which is expected to be tax-free to $CBS and its stockholders, the Company intends to split-off CBS Radio through an exchange offer immediately prior to the merger.