CBS Corporation (NYSE:CBS.A) Q2 2018 Earnings Conference Call - Final Transcript

Aug 02, 2018 • 04:30 pm ET

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CBS Corporation (NYSE:CBS.A) Q2 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to today's CBS Corporation Second Quarter 2018 Earnings Release Teleconference. Today's call is being recorded.

And at this time, I'd like to turn the call over to the Executive Vice President of Corporate Finance, Mr. Adam Townsend. Please go ahead.

Executive
Adam Townsend

Good afternoon, everyone, and welcome to our second quarter 2018 earnings call. Joining us for today's remarks are Leslie Moonves, our Chairman and CEO; and Joe Ianniello, our Chief Operating Officer. Following Les and Joe's remarks, we will open the call up to questions.

Please note that during today's conference call, results will be discussed on an adjusted basis unless otherwise specified. The second quarter of 2018 results are adjusted to exclude restructuring charges and costs related to other corporate matters incurred during the quarter. Reconciliations for non-GAAP financial information related to this call can be found in our earnings release or on our website.

Also note that statements on this conference call relating 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 SEC filings.

A webcast of this call and the earnings release related to today's presentation can also be found on the Investor Relations section of our website at cbscorporation.com.

Finally, in light of pending litigation and other matters and on the advice of counsel, the scope of today's call and any questions will be limited to the quarterly results of the company.

And with that, I'll turn the call over to Les.

Executive
Leslie Moonves

Thank you, Adam. Good afternoon, everyone, and thanks for joining us today. As you can see from our results, CBS turned in another very strong quarter. Revenue was up 6% to $3.5 billion and EPS was up 8% to $1.12, marking our 34th consecutive quarter of EPS growth. Both revenue and EPS were also second quarter records for us, and we remain firmly on track to deliver the kind of full year results we told you we would.

Beyond that, we're as confident as ever that the strategy we have in place is setting us up for continued, long-term success. The reason we have such great confidence is because we are constantly successfully staying ahead of the changes taking place across our industry. And as we do, we're taking full advantage of all the ways we could monetize our content across new forms of distribution. In fact, there are few companies as uniquely positioned to profit from the explosion of premium content on new platforms as we are. Over-the-top and direct-to-consumer services are becoming mainstream, and we have our own well-established platforms that are growing right along with consumer demand.

Our two cornerstone digital distribution services, CBS All Access and Showtime OTT, are surpassing our expectations, and we have some news to share today in that regard. As we've said, our goal was to have 8 million subscribers combined from All Access and Showtime OTT by 2020. I'm