CBS’ third-quarter profit surges 53%

CBS Corp.’s third-quarter earnings soared 53% over last year, bolstered by an improved advertising market and lower costs.

For the quarter that ended Sept. 30, the company on Thursday reported earnings of $317.3 million, or 46 cents a share, compared with $207.6 million, or 30 cents, during the third quarter of 2009.

“We had another terrific quarter, and our momentum continues to build,” CBS Chief Executive Leslie Moonves told analysts on an afternoon conference call.

He touted the company’s flagship CBS broadcast network, which has already renewed its entire slate of new fall shows, the Showtime cable channel and the company’s bread-and-butter business of local television and radio stations.

Advertising revenue was 10% higher, but the company brought in fewer dollars overall. Revenue was $3.3 billion, down from $3.35 billion in the third quarter of 2009.

Last year’s third quarter benefited from the sale of syndicated reruns of five network shows, including “Medium,” “Criminal Minds” and “Everybody Hates Chris.” Third-quarter revenue for its entertainment division, which includes the CBS network and TV production studio, slipped 12% this year to $1.62 billion.

Advertising revenue and increases in affiliate and subscription fees helped to make up the difference. Cable network revenue, which includes premium channel Showtime and CBS College Sports Network, increased 12% to $370 million. But Simon & Schuster publishing house revenue decreased 6% to $217.7 million.

It was the old-school broadcasting business that shone in particular. Local station revenue was up 15% to $677.3 million for the quarter. TV stations were a bright spot, with revenue jumping 25% as car companies increased their ad spending and politicians began snapping up available commercial spots.

Well-positioned with many of its TV and radio stations in the election battleground states of California, New York and Florida, CBS collected $37 million from political campaigns in the quarter, which ended just as the election season heated up. CBS has said it would garner about $200 million in political ads this year.

“It’s going to be a strong fourth quarter,” CBS Chief Financial Officer Joseph Ianniello said.

Financial analysts had estimated earnings of 31 cents a share after subtracting one-time items, on revenue of $3.35 billion, according to a poll by Thomson Reuters. CBS also announced a $1.5-billion repurchase program for Class B common stock, beginning in January.

meg.james@latimes.com