MUMBAI: US media conglomerate CBS has posted net earnings of $427 million for the second quarter ended 30 June 2012, up eight per cent.

Operating Income was $769 million, an increase of five per cent.

CBS executive chairman Sumner Redstone said, "CBS?s content continues to fuel the success of this great company. In a world where greatprogramming commands premium pricing, we continue to hit on allcylinders. I am extremely pleased with our terrific second-quarter results, and I am confident that Leslie and his management team willbuild on our momentum in the quarters and years to come."

CBS expects to show stronger performance in the second half of the year due to the US presidential elections and the Olympics. The prospects for 2013 also look good as the network has Super Bowl.

CBS president, CEO Leslie Moonves said, ?For all of these reasons, we?re confident 2012 will be a record year, and we will produce exceptional results in 2013 and beyond as well.?

Two factors in the second quarter of 2011 ? the Company?s initial multiyear digital streaming agreement (under which dozens of the Company?s library titles were first made available for streaming) and the semifinals of the NCAA Division I Men?s Basketball Championship (which aired during the first quarter in 2012) ? had an impact on the revenue comparison.

Second quarter 2012 revenues came in at $3.48 billion compared with $3.59 billion for the same quarter a year ago. Some of the impact was offset by growth in high-margin affiliate and subscription fee revenues, while underlying advertising revenues for the second quarter of 2012 reflected a steady marketplace. In addition, the OIBDA margin improved two percentage points, to a record 26 per cent and the operating income margin expanded two percentage points, to 22 per cent, in the second quarter of 2012.

Those increases, as well as the company?s record performance in the three key metrics mentioned above, reflect a higher profit margin on 2012 television licensing revenues as well as the growth in high-margin affiliate and subscription fees.

Free cash flow was $558 million for the second quarter of 2012, compared with $646 million for the second quarter a year ago. For the first half of 2012, free cash flow was $1.17 billion compared with $1.50 billion for the first half of 2011, reflecting higher investment in content (primarily television programming) and higher income tax payments. The company generated cash flow from operating activities of $1.26 billion for the six months ended June 30, 2012, versus $1.59 billion for the comparable prior-year period.

Entertainment

Entertainment (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films, and CBS Interactive) revenues of $1.71 billion for the second quarter of 2012 decreased 7 per cent from $1.84 billion in the same prior-year period. Last year?s second quarter benefited from the initial licensing of the company?s programming for digital streaming, the third-cycle domestic syndication sale of Frasier, and the semifinals of the NCAA Division I Men?s Basketball Championship, which aired during the first quarter of 2012 versus the second quarter of 2011. Some of the impact was offset by growth in high-margin retransmission revenues and higher international syndication revenues in the second quarter of 2012.

Cable Networks

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks) revenues for the second quarter of 2012 increased by eight per cent to $446 million from $413 million for the same prior-year period. The results were driven by higher affiliate revenues, which reflect increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks, as well as higher licensing revenues from the digital streaming of Showtime original series.

Outdoor

Outdoor revenues for the second quarter of 2012 decreased by two per cent to $481 million from $490 million for the same prior-year period, driven by the unfavorable impact of foreign exchange rate changes. In constant dollars, revenues increased 1 per cent from the second quarter of 2011.

Revenues for the Americas (which includes North America and South America) increased by two per cent in constant dollars for the second quarter of 2012, principally driven by growth in the US billboards and displays businesses, partially offset by the impact from the nonrenewal of the Toronto transit contract.

Revenues for Europe increased by one per cent in constant dollars, primarily reflecting higher advertising sales associated with the 2012 Summer Olympics in London. Some of this increase was offset by weakness in the European economy and the nonrenewal of certain contracts.

NEW DELHI: Rigid News Access Rules of the London Organizing Committee for the 2012 Olympic and Paralympic Games prevent news channels from even giving live news breaks of achievements by Indians.

Thus, while a channel can make an announcement whenever any Indian wins a medal, it can get the footage only around three hours later as the rights lie with Doordarshan and ESPN Star Sports.

In fact, the News Broadcasters Association (NBA) sent the News Access Rules to all its members late last week, asking them to exercise caution while covering the Olympics.

Non-rights holders or channels that are not the official broadcasters can use a maximum of six minutes of Olympic material per day, in accordance with the News Access Rules.

Besides, the six minutes footage cannot appear in more than three news programmes in a day and its duration cannot exceed two minutes in any one news programme.

The rules apply to all forms of broadcasting, television (free-to-air and pay television, cable, satellite, video on demand, including digital channels, digital multi-channels and services such as ?news active? or ?sports active?), radio, Internet, mobile platforms and other interactive or electronic media.

News channels that are telecasting Olympic-based programmes - studio discussions or special features - are not allowed to use words such as Olympic or London 2012 to brand or position their shows.

It is learnt that Hindi channels are using names like ?London Mahakumbh? while some other channels are using terms like ?London Dreams? or ?India Mange Gold?. There is no restriction on the use of London 2012 or Olympic Games in the regular news bulletins.

The guidelines also prevent television channels from using Olympic material for these shows. Olympic material includes ?sounds or images of any Olympic event, wherever and whenever broadcast and however sourced, including sporting action, opening and closing ceremonies, medal ceremonies or other activities which occur at Olympic venues,? according to the rules.

Indian news channels are unhappy with the rules and feel that limited use of footage and other restrictions as those prescribed will also hit their commercial revenue around programmes based on the Games.

NBA has, in fact, been urged to take up the issue as such access rules are framed at every major sporting event and affect the freedom of the news channels to report, sources said.

In any case, news channels signing up for accreditation to cover the Games have to accept these rules automatically.

Television News Access Rules:

1. Use in News Programs only: The broadcast of Olympic material may be used only as a part of regularly scheduled daily news programmes, of which the actual news element constitutes the main feature. News programmes shall not be positioned or promoted as Olympic or London 2012 programs and Olympic Material cannot be used in any promotion for any news programme or any other programme whatsoever.

2. Six Minutes Per Day: Non-Rights Holders may use a maximum of six minutes of Olympic Material per day, in accordance with all other provisions of these News Access Rules.

3. Number of news programs, Length and Separation of News Excerpts: Subject to Clauses 1 and 2 above, Olympic material may be used in news programmes subject to the following provisions:
a) Olympic material may appear in no more than three news programmes per day; and
b) No more than two minutes of Olympic material may be used in any one news programme; and
c) These news programmes must be separated by a period of at least three (3) hours; and
d) No more than one third of any individual event may be used in any one news programmes or 30 seconds, whichever is the lesser time. However, if the duration of an individual Olympic event is less than 15 seconds, the whole of the event can be shown in a news programme.

4. All-News or All Sports Networks: In the case of an All-News or All Sports Networks, the networks may use a maximum of six minutes of Olympic material per day during multiple news programmes, subject to the following provisions:
a) in no more than six news programmes per day and does not exceed a total of one (1) minute in any one programme. These bulletins must be separated by a period of at least two hours; or
b) in accordance with Clause 3 above - i.e. 3x2x3.

5. Airing after Broadcast by Rights Holders only: Non-Rights Holders may only broadcast Olympic material within a news program in accordance with Clauses 1, 2, 3 and 4 above and all other conditions contained in these News Access Rules, as follows:
a) As of three hours following the broadcast of an Olympic event by the local Right Holding Broadcaster on free-to-air television in that territory;
b) If not broadcast by the local Rights Holding Broadcaster on free-to-air television in that territory on the day (local time) during which the Olympic event concluded, then as of the end of the broadcast day (i.e. 24:00 hours local time); or
c) Non-Rights Holders can broadcast Olympic material prior to the times referred to above, or can broadcast more Olympic material than allowed above, only with the specific written agreement of the local Rights Holding Broadcaster.

6. Courtesy Credit/Rights Holder ?Bug?: Each Broadcast, communication or other broadcast of Olympic material in accordance with these News Access Rules must give an on-screen credit to the local Rights Holder by leaving on the Rights Holders watermark for the duration of the clip or, should the Olympic material not be sourced through the local Rights Holder, by adding a super video credit to the Rights Holder for the duration of the clip to read as follows: ?Courtesy (Name of Rights Holder)?

7. Olympic material must not be Broadcast on interactive services such as ?News Active? or ?Sports Active?, which would allow the viewer to make a viewing choice within a channel and to thereby view Olympic material at times other than when broadcast as part of a news programme as set out in Clause 1 above.

8. Should any fair dealing or similar provisions contained in any applicable national law permit the use by Non-Rights Holders of any footage of previous Olympic Games, then such footage will be included in the total of six minutes per day.

9. Olympic Material may only be used for a period of 48 hours following the completion of the actual event. After such period, Non-Rights Holders may only transmit archive Olympic material with the express prior written consent of the express prior written consent of the IOC.

10. For the sake of clarity, except as permitted within these News Access Rules, only Rights Holders are permitted to film within Olympic Venues and to Broadcast Olympic material. The broadcast of Olympic material by E Accredited Media, including Non-Rights Holders, via the Internet, Mobile Platform and other interactive media or electronic medium, is strictly prohibited and is a breach of these News Access Rules.