CBS Radio revenues increased 4% in the second quarter, compared to the same period a year ago.
The broadcaster cited growth in retail and financial services advertising for the increase, though these were partially offset by a drop in political advertising.
Wells Fargo analyst Marci Ryvicker stated in a client note that the strength in radio revenue was a good surprise.
The company released a total radio and television “local broadcasting” revenue figure of $691 million for the quarter, up 2% for the same period in 2010. It reported the increase was “primarily driven by higher advertising sales, which benefitted in part from an increase in market share.”
Local broadcasting OIBDA (Operating Income before Depreciation & Amortization) for the quarter of 2011 increased 7% to $230 million from $214 million for the same prior-year period, due to the revenue growth and lower programming costs.
Revenues of $3.59 billion for CBS overall for the second quarter of 2011 increased 8% from $3.33 billion for the same quarter last year driven by 21% growth in content licensing and distribution revenues, which benefited from a new licensing agreement for the digital streaming of select video library titles. CBS said its new programming agreement for the NCAA Division I Men’s Basketball Championship Tournament results in lower revenues but higher profits. The deal, which kicked in this year, also lowers CBS sports programming costs.