CBS Q4 earnings rise on higher licensing fees

Higher TV programming licensing fees and demand for its cable shows boosted CBS Corporation's fourth quarter earnings, capping a year in which the value of its content was debated on the national stage.

CBS' net income rose 19% year-over-year to $470 million during the October-December period as the TV entertainment, cable networks and publishing divisions all reported higher revenues.

Revenue for the quarter totaled $3.9 billion, up 6% from a year ago.

"CBS continues to turn in stellar performances year in and year out, and none better than 2013," said CBS executive chairman Sumner Redstone.

Adjusted earnings per share of 78 cents beat analysts' estimates of 76 cents.

CBS shares rose 4% in after-hours trading Wednesday to $64.35.

The entertainment group, which includes the CBS network, CBS TV Studios and the digital properties, reported a 11% increase in revenue to $2.2 billion. Advertising sales and licensing of TV programming for streaming and syndication fueled its growth, the company said. Advertising sales at the most popular primetime television network increased 4%.

Revenue at the cable networks division, which operates Showtime, CBS Sports Network and Smithsonian Networks, jumped 9% to $477 million. CBS cited licensing of Showtime original series and higher fees from pay-TV providers for the improved performance.

"CBS continues to realize additional value for its content through digital sales of its programming along with domestic and international syndication deals," said Robin Diedrich, an industry analyst at Edward Jones. "These additional revenue streams also help to reduce its dependency on advertising dollars."

Simon & Schuster, the CBS-owned book publisher, saw a 5% increase in revenue to $225 million. During the fourth quarter, it released several best-selling titles, including Rush Revere and the Brave Pilgrims by Rush Limbaugh and The Bully Pulpit by Doris Kearns Goodwin.

In 2013, CBS' revenue rose 8.4% to $15.2 billion. I! ts net income climbed 19% to $1.9 billion.

In the most prominent battle last year over TV retransmission fees, Time Warner Cable dropped CBS in August at several markets nationwide as they negotiated for a new contract. TWC argued that CBS' demand for a hike in fees was too steep. CBS said fees from cable companies should be in line with the popularity of its shows, which include NFL games, NCIS and 60 Minutes.

A month later, the two sides reached a new broadcasting rights agreement as the NFL regular season neared. CBS CEO Leslie Moonves said the final agreements delivered "all the value and terms" that he sought in the negotiations.