Both local broadcast operations reported revenue growth in Q2 as CBS Corporation reported that overall revenues grew 11% to $3.3 billion. The local broadcasting sector saw revenues gain 17%, with TV shooting up 31% and radio 6%.
For the entire local broadcasting sector, that 17% gain took Q2 revenues to $678.2 million. Advertising sales were also up 17%, so you can see that some of the gain was also from other sources, such as retransmission consent payments. Revenues for the CBS TV station group were up 31% to $337.9 million, with growth noted in automotive, financial services and political. CBS Radio revenues gained 6% to $340.9 million, with the company’s top 10 markets up 10%. Adjusted operating income before depreciation and amortization (OIBDA) for local broadcasting more than doubled to $214 million.
Looking ahead, pacings remain strong for the local broadcasting sector in Q3. In the quarterly conference call, analysts were told that ad sales for the TV stations group are pacing up in the mid 20s, excluding political, and that radio is up in the high single digits. CEO Les Moonves insisted that momentum is still strong and “we do not foresee a slowdown.”
The network television business was also up in Q2. The Entertainment sector, including the CBS Television network, studio, syndication, interactive and the start-up CBS Films, reported Q2 revenues up 10% to $1.67 billion, fueled by international syndication growth. OIBDA was up 7% to $22.6 million.
Cable Networks (Showtime Networks, Smithsonian Networks and CBS College Sports Network) saw revenues rise 12% to $368.8 and OIBDA was up 33% to $129.3 million.