News Broadcasting
CBS operating income up 4% to $646 million
MUMBAI: US media conglomerate CBS Corporation has reported results for the third quarter ended 30 September, 2006.
CBS’ operating income rose by four per cent to $646 million led by television and outdoor. Net earnings from continuing operations went up by 26 per cent to $324 million.
Revenues of $3.4 billion for the third quarter of 2006 were up slightly from the same quarter last year, as growth at outdoor and publishing was offset by a decline at radio, the shutdown of broadcaster and lower home entertainment revenues due to the switch from self-distribution in 2005 to third party distribution in 2006.
For the nine months ended 30 September 30, 2006, revenues were $10.4 billion which marked an increase of one per cent from the same prior-year period, as growth at outdoor, television and publishing was partially offset by a decline at Radio. Results for the first nine months of 2006 reflected $24.0 million of expenses related to the UPN shutdown as well as the impact of stock-based compensation expense of $51.7 million versus $13.1 million for the nine months ended 30 September, 2005.
For the quarter, television revenues of $2.2 billion decreased slightly from the prior year as growth in television license fee revenues and affiliate fees was more than offset by lower advertising and home entertainment revenues.
Television license fees increased by seven per cent principally due to the domestic syndication sale of CSI: Miami and higher foreign syndication revenues. Affiliate fees increased six per cent due to rate increases and subscriber growth at Showtime and the inclusion of CSTV Networks since its acquisition in January 2006. Ad revenues decreased by three per cent primarily due to the shutdown of UPN in September of 2006 and the absence of the Primetime Emmy telecast in 2006, partially offset by strong political advertising sales at the television stations.
Home entertainment revenues decreased by 35 per cent principally due to the switch from self-distribution in 2005 to third party distribution in 2006. The CW, a 50/50 per cent joint venture broadcast network with Warner Brothers Entertainment, was launched in September 2006 and has been accounted for as an equity investment in the third quarter of 2006.
CBS executive chairman Sumner Redstone says, “CBS Corporation is right on track. “We remain committed to escalating shareholder value as we continue to drive our businesses forward. I am encouraged by the strategic vision Leslie and his team have put forth to capitalize upon the tremendous opportunities unfolding in the digital age.”
CBS president, CEO Leslie Moonves says, “This was another strong quarter, posting solid profit increases in Television and Outdoor, generating significant free cash flow, and delivering the third of three dividend increases since the start of the year. In Radio, our plan to strategically reduce the number of markets in which we operate is well underway. We have signed agreements to sell 29 stations for a terrific value. We also believe that the growth we’re seeing in key formats such as Jack, Spanish and Talk bodes well for improved performance at Radio in 2007.
” Through innovative partnerships with YouTube, Yahoo, and many other key new media concerns, we’re aggressively pursuing opportunities that help us extend our world-class mass-appeal content to new digital platforms and channels and get paid for it. As a premier content company, we continue to be pleased with new technological developments that allow consumers to more easily enjoy our content, and extend our reach into the digital space.”
The company expects to deliver low single-digit growth in revenues, mid single-digit growth in operating income and high single-digit growth in earnings per share.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
