Time Warner, CBS and Comcast beat Wall St. forecasts

Thanks to growth in multiple revenue streams including advertising growth, content licensing deals and movie box office returns, media giants Time Warner Inc., CBS Corp. and Comcast Corp. are doing well and beating analysts’ forecasts despite a bad economy, Reuters reported today.

The ad market is still strong, and although there is concern over the economy, there are no current “signs of a deceleration,” Steve Burke, chief executive of Comcast’s NBC Universal, told Reuters.

Comcast’s second quarter earnings were up 16 percent, thanks to subscriber growth in its cable division, especially in broadband, according to Dow Jones Newswires. Its cable arm makes up more than 80 percent of the company’s operating cash flow.

CBS more than doubled its second quarter profit, thanks to its programme-licensing deal with Netflix Inc., its many television shows in syndication, and also its radio and billboard advertising businesses. Its second quarter earnings reached US$395 million, compared to $150 million year-on-year, the Los Angeles Times reported.

Time Warner’s second quarter net income was up 14 percent, due mostly to its video games, TV channel business and movies, according to The Associated Press.

“Advertising got so badly hit in 2008 and 2009 during the recession that advertising still has room to return to a normalized level to GDP,” said Evercore Partners analyst Alan Gould, according to Reuters. “Ad sales should do OK through the end of the year, driven by autos, especially as Japanese auto makers come back.”

Image: IMDB. CBS Corp.’s earnings were driven by its core businesses, including television and its stable of programmes in syndication. It sold syndication of its sitcom “Frasier” to the Hallmark and WE cable channels.

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