Highfields Capital Management and CBS Corporation
Jonathon Jacobson’s Highfields Capital Management’s top new purchases are Air Products & Chemicals, Inc. (APD), Broadcom Corporation (BRCM), Applied Materials, Inc. (AMAT), Royal Dutch Shell (RDS.A), and JPMorgan Chase (JPM). Highfields sold out positions in CBS Corporation (CBS) and Hess (HES).
Highfields liquidated a 1.13% position in CBS Corporation (CBS). CBS is a is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world.
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CBS posted its fourth-quarter earnings and revenue growth that beat Wall Street expectations. Revenue grew across all segments except Local Broadcasting. Advertising revenues remained flat, as a 4% increase at the CBS Television Network was offset by lower political advertising revenues at Local Broadcasting. In the third quarter as well, broadcasting revenue decreased 3% to $641 million as a result of lower political advertising revenues compared with 2012, which benefited from the U.S. presidential election. At that time, the company denied that the results were impacted by a dispute with Time Warner Cable, which resulted in a programming blackout for millions in August last year.
Adjusted net earnings from continuing operations were $477 million for the fourth quarter of 2013, or $.78 per diluted share, up from $414 million, or $.64 per diluted share. Revenues of $3.91 billion for the fourth quarter of 2013 grew 6% from $3.70 billion in the same prior-year period. This growth was led by a 28% increase in content licensing and distribution revenues, which was driven by higher domestic and international licensing of television programming.