CBS Corporation (NYSE:CBS.A) Q2 2016 Earnings Conference Call - Preliminary Transcript

Jul 28, 2016 • 04:30 pm ET

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CBS Corporation (NYSE:CBS.A) Q2 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the CBS Corporation Second 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 second quarter of 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 second quarter 2016 results are compared to adjusted second quarter 2015 results and year-to-date results will be discussed on an adjusted basis unless otherwise specified. Reconciliations for non-GAAP financial information related to this call can be found on our earnings release or on our website. Also, statements on this call relating to matters which are not historical fact 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 SEC 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 for joining us today. As you've seen in our earnings announcement, CBS turned in another outstanding quarter. Revenue came in at $3.3 billion, up 2% from a year ago and considerably better than that on an underlying basis. Operating income was up 14% to $733 million and EPS was up 26% to $0.93, the highest EPS we've ever had for a second quarter and our 26th consecutive quarter of EPS growth.

Clearly, CBS continues to fire on all cylinders and we have a number of catalysts for future growth that we're confident will drive earnings in the quarters and years to come. Just in the last few months, we have made many significant strides to achieve the long-term financial goals we laid out at our Investor Day in March, and we've also taken a number of additional steps to set us up for even more success. Let me just touch on a few of them.

One, we led the upfront marketplace with double-digit price increases and healthy gains in volume. Next, our CBS All Access and Showtime OTT streaming services have surpassed 2 million subscribers, about evenly split and well ahead of where we thought we'd be this early in the game. We've licensed our Star Trek franchise in the international marketplace, guaranteeing our new series will be profitable even before it launches and begins driving subs here in the U.S. and on CBS All Access. We greatly expanded our SVOD revenue for The CW ensuring its profitability for years to come.

We just licensed our Carpool Karaoke series to Apple. This represents a significant new