CBS Corporation (NYSE:CBS.A) Q1 2016 Earnings Conference Call - Final Transcript

May 03, 2016 • 04:30 pm ET

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CBS Corporation (NYSE:CBS.A) Q1 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the CBS Corporation First Quarter 2016 Earnings Release teleconference. Today's call is being recorded. At this time, I would like to turn the call over to the Executive Vice President of Corporate Finance and Investor Relations, Mr. Adam Townsend. Please go ahead.

Executive
Adam Townsend

Good afternoon, everyone, and welcome to our first quarter 2016 earnings call. Joining us with today's remarks are Leslie Moonves, our Chairman and CEO and Joe Ianniello, our Chief Operating Officer. Following Les and Joe's discussion of the company's performance, we will open the call up to questions. Please note that during today's conference call, the first quarter results are discussed on an adjusted basis unless otherwise specified. Reconciliations for non-GAAP financial information related to this call can be found in our earnings release or on our website.

Also, statements in this conference call related to matters which are not historical facts are forward-looking statements which involve risks and uncertainties that could cause actual results to differ. Risks and uncertainties are disclosed in CBS Corporation's news releases and securities filings. A webcast of this call and the earnings release related to today's presentation can be found on the Investors section of our website at cbscorporation.com. With that, it's my pleasure to turn the call over to Les.

Executive
Leslie Moonves

Thank you, Adam, and good afternoon, everyone, and thank you very much for joining us. I'm extremely pleased to tell you that CBS has turned in a phenomenal first quarter. Revenue was up 10% to $3.85 billion, the highest we've ever had in the first quarter in our history. Operating income was up 16% to $812 million, our best OI for any quarter ever. And EPS was up 32% to a new quarterly record of $1.02, marking the first time in the history of the CBS Corporation, that quarterly EPS came in above $1.

I think you could see why we're so excited to be with you today. In addition to being a quarter for the record books, we had a fantastic start to what is shaping up to be an outstanding year. And beyond that, the path to our long-term success is as clear as it's ever been. As most of you know, we held an Investor Day during the quarter. We showed you how we outperformed our goal over the last five years and we laid out a roadmap to generate billions of dollars in new incremental revenue over the next five years.

Each quarter going forward will represent another step in achieving this new goal and our earnings today are just the beginning. As we look at today's results, it's important to note that in addition to the new incremental revenue we outlined for you on Investor Day, advertising was also way up in Q1. Advertising grew 31% overall and 49% at the CBS Television Network. Obviously, the Super Bowl played a big part in this, but even when you take out the Super Bowl, and our three extra NFL games, underlying network