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CBS’S PROFITS A REAL EYE-OPENER

May 6, 2010 by · Leave a Comment 

The return of advertisers to the TV market helped CBS boost its revenue 25 percent in the first quarter. (With ad sales from the Super Bowl excluded, the figure would have been “in the high single digits,” the company said.) CBS, which, unlike most media conglomerates, depends on ad sales for more than 60 percent of its income, saw a huge spike in ad sales at its local TV stations, where revenue rose 29 percent, and at its radio stations, where revenue rose 9 percent. In a conference call with analysts, CBS chief Les Moonves said that the outlook for the coming season was even stronger and predicted that the upfront market “will be the strongest one in years.” He also predicted that retransmission consent fees will become a major source of additional income for the company. “The value of broadcast content is finally being recognized [by cable providers] … and CBS is capturing the benefits of that,” he said. “We are on pace for north of $100 million in retrans revenues this year, and we’ll achieve multiples of that number going forward.