the average money managers 51 years old and doesn't really get it. i was watching and didn't know what was happening. they were going nuts. liz: i'll tell you they have got to be going nuts over at apple. joe besecker take two interactive and mud to more, apple makes history. 1 trillion market caps. melissa: an historic milestone on wall street apple hitting the trillion dollar mark but it's not enough to help the dow which is fighting more gains rattled by. tensions ending the day down about six points. it is green so the snp and the nasdaq. i'm melissa francis. dave: i am david asman. the dow was down 180 points at one point today so it's a tremendous comeback. we are so glad you could join us for "after the bell". first here's what else we are

covering at this busy hour. cbs is in the spotlight. the media giant out with its big proper report at any minute and then one of the most highly anticipated conference calls in history. les moonves is expected to be on the call addressing analysts amid allegations of misconduct and questions over his future at the company. this is an historic moment. we will bring you the numbers when they come out and of course the conference call when it begins life. and sounding the alarm to the nations highest intel officer bringing the -- briefing the press on the thread over our elections with russia. the details on this and how they plan to fight back and then there is twitter. the ceo jack dorsey responding to incredible claims that his company censoring voices. guy benson sat down with dorsey and he will bring us the details

of the interview coming up. melissa: market caps hitting the 1 trillion-dollar mark. nicole petallides is that this doc exchange. >> the dow industrial average trying to get the dow onto the green but it's down 7.5.. the snp and the nasdaq are higher. nasdaq up 1.2% so we can say thank you apple. this is reminiscent of when i stood here, to see apple and standing here with all the excitement when it blows through that 1 trillion-dollar mark. the only company that has done this with the exception of petro china but this is a u.s. company breaking ground. it was monumental and really exciting to watch. you own it how about for the last 52 weeks it's been up 30% so that's a good return for that one. take a look at the rest of the pack stocks. they have been all winners.

facebook has struggled some but wonders across-the-board in today. then there was -- the ceo trying to make points. we are more like voc who. we are hardware and software. they are priced at 15 bucks and look what happened. they were up 32%. what a move and as you noted the top of the show cbs we are waiting for the call. les moonves will be on the call. we'll have this live on fbn and their earnings and shares jumped 6% and revenues up. will people be asking more about the numbers or more about less menendez role as ceo and chairman? >> investigation is underway as the allegations so we will see what happens but that will be on fbn at this hour. david: let's bring in jason

rodman. david deats from point you wealth. david we all have our apple stories. mine is that i bought a share of apple stocks back in march of 2009. that was at the bottom point of the session. i quadrupled my money and sold it off and thought i was doing great. i sold it off for about $300 whatever was back then and it cut its share price and since then it's done a lot of stuff. it's $1 trillion. what is the market implication of what has happened to apple today? >> certainly steve jobs created in steve cook is taken to the next level as shows the power or you can do with the great product. over the last year they hadn't sold any more units. they just recently raised prices so is fantastic and the question is where do we go from here? on the one hand it's not a challenge and on the other hand

and another 10% to create another company within apple. david: jason besides raising prices they have diversified tremendously from the original project and product orientation that they used to be into now getting into services on all kinds of things like cloud computing is a dig part. they have expanded tremendously and very successfully on the cutting-edge of technology. >> that's right. the idea to remember is that now the whole world is snared in a net of apple. you have car play and you have everything that they have diversified into. there so much uncharted territory that they have their sights on that the reason why they are the trillion dollar company as as been noted here is that it's almost impossible to accurately value the company would even as large as they are there's still appertain these

for them. david: they still david have this extraordinary profit margin. a 35.5% profit margin is just amazing when you think of other companies and histories happening with five or 10%. david. >> you know i couldn't agree with you more and of course jason is right on. how do you value a company like this? david: forgive me the day before interrupting that cbs just came out. peter bolton has been looking over the numbers. deirdre: on the top and so in earnings than for revenue you have cbs improving. this set of orderly figures over what they reported last in the second quarter better and as earnings 6.4% and let me give you exact numbers. as farce earnings most estimates were $1.11 per share and if you look at sales they exceeded that as well.

3.46 billion, three .47 billion is what was posted. as we know we are talking about this coming in and a larger context that they have the hit shows the survivor "the big bang theory" "ncis" and following and waiting to see if the chairman and ceo les moonves will beyond those earnings call and 10 or 15 minutes time. of course i will be listening to that. in the meantime the big headline is that beat on the top in the bottom of the hour. david: i just want to emphasize we will all be listening in on that conference call because we will beat covering the conference call live. if and when les moonves is unbeatable coverage from the beginning of the statements to the end of the statements. you will was -- miss nothing here on fbn. melissa: jason and david are back with us. howard this is a crazy situation. would he think is going to happen with les moonves?

is he going to get on this conference call and what's he going to say and what are people going to ask him? i can only imagine. >> if the report is true that he gives him a call at shows he's fighting or his job and number two we haven't heard from him publicly. he gave only a statement to "the new yorker" magazine which reported that devastating misconduct accusations against the cbs chairman. he knows if he gets on somebody is going to ask about that. i'm sure he will have a very careful statement about how he wants to handle that. as you know he's got that problem and is that the problem of internal corporate litigation and viacom which wants to combine with cbs. he is the man whose job i would say is in some jeopardy but seems to want to fight for that job. melissa: jason obviously they are hitting on all cylinders but they have this potentially huge problem ahead of them. >> is such a critical point because it reestablishes the leadership of les moonves and

they are fighting for their lives and their key owner who is trying to consolidate with viacom and the fact that they can do well as a company that also shows they are successfully migrating into the universe there relies on cable shows. a lot of earnings numbers. melissa: jason how essential is les moonves to this? >> he is obviously the head coach. he's the bill belichick of the new england patriots. he's the ceo here. essential is not even a word. i don't know who would replace him. as far as him being on the conference call obviously if it's all true needless to say, hello it's not welcome. it's horrible. the same time to tell you the truth the business is the business and they think the negative sense that on from a business standpoint with viacom in redstone i think it's a buying opportunity.

david: if i could throw in a line look at the after hours and what's happening. this is the beat at the top of the bottom line. still there's some good after-hours comments about what's coming up in the future and the various business deals outside of their own company. i think what is happening with moodna's is beginning to sink in melissa: howard, les moonves makes roughly double what bob iger does. how much is the head coach is he's been described how essential is he? >> he's more than just the head coach for les moonves is the man who turned cbs around from a last-place network to a first-place network. here's the key the cbs independent directors are quick to hire two prominent law firms who handle misconduct allegations. you talk to people they spoke to

as ronan farrow did in youth speaks to menendez. it cbs has got a dilemma. they may think he's the greatest leader and businessman of the world but do they want the black tights to use the logo analogy that keeping him in place would result in if in fact these allegations are confirmed by outside investigators. melissa: this is not the blue. all of us who are in the media know that this is something reporters have been investigating for a long time, right? >> yes. the rumors have been around but rumors around for a lot of people. but "the new yorker" did and those are my snood media figures who were forced to leave it sees documented, ronan farrow documented. he admitted mistakes and he feels immensely regretful about those mistakes but he has not the knowledge the most serious charges. that's where we'll see what if anything gets done by this call. david: we did mention the role

of sherri sherri redstone if there is a rope which he played in giving some of this information in the context to ronan farrell. we mentioned les moonves is expected to be on the cbs conference call minutes from now taking questions from analysts, some of them no doubt very pointed. we will see whether the white eye if cbs becomes the lack i is he just put it. we'll it. we'll bring it to you live as soon as it begins than because sometimes they know what it's hard to hear what people are saying on these calls we will ring it to you with closed-captioning so you can hear and read what's being said so you will not miss anything. meanwhile not backing down present counts top national security adviser sending a stern warning to enemies trying to meddle in our elections. "fox business" is blake urman is live at the white house with what was a pretty unexpected event and normal white house press briefings. >> this is very unexpected.

we did not know these folks would be coming out of her marker will show of force. here at the press briefing in the podium behind me of the nation's top officials in the intelligence community standing shoulder-to-shoulder. among them the fbi had christopher wray the director of national intelligence and dan coats the head of the department of homeland security and kristin nelson the president's top national security adviser john bolton and the head of the nsa all trying to assure that they are on top of the 202018 election as it relates to potential outside interference and they pointed the finger directly at russia saying they are still trying to mess with our elections. >> with regards to russian involvement in the midterm elections we continue to see a pervasive messaging campaign by russia to try to weaken and divide the united states. >> the latest example believed to have occurred earlier this

week i was real but facebook shut down some 32 accounts believed to be russian linked accounts that were trying to sow discord within the political system. i asked the fbi director wray about this. he would not point the finger specifically at russia but he did complement social media networks in general for shoring up their defenses especially since they were heavily criticized in the lead-up to the 2016 election about their performance then. >> they are sharing information based on what they find in their things they can do on their platforms voluntarily in terms of use and things like that the government does not rule and that in turn we can use that to have our investigations be more effective so i do think roberts is being made. we have to keep getting better at it but i think that's what we are seeing. >> wray had a much broader message saying foreign interference is well beyond elections the nation's intelligence chief with that message saying they are on watch.

russia is involved and they have tried to put forth a little confidence that the american public can believe in these 2018 elections will be guarded. david: and it was unequivocal. it was the russians and it started at the kremlin. here now is "the wall street journal" columnists. first of all what do you make of that meaning itself and who was responsible for it? and thinking john kelly that he was the one that insisted this come out. what do you think? >> i don't know. i don't have an inside pipeline. david: you usually do and that's why we have you on. >> i used to have a pipeline when i was there but i know longer do. i think that's a reasonable speculation and it reminds you everything president trump does is accompanied by so much noise in the difficulty is sifting through the noise and getting to the policy. this was a pretty strong statement today. david: yes, it was. it's almost like a rhetorical question.

it's not -- let me put it this way it isn't going to put to rest all of the media questions about why don't they point their fingers at russia even though that's exactly what they were doing? >> to paraphrase president trump he could shoot putin on fifth avenue and people would say he did it to cover-up their collusion. there's no winning here. david: let me ask you about something else that happened at this press conference. has to do with sarah huckabee and john acosta of seed -- cbn paid to pointedly asked her question will you agree with ivanka ivanka that the press is not the enemy of the people as opposed to her father president trump's says it is and she would not take the bait. she said look the president has done everything -- how do you expect me to come to the defense of the press? what you think of that exchange? >> i think it's ridiculous. again there's a lot of noise with president trump.

he popped off about the press and it really does show a lot of bias and so forth. whether it's the enemy of the people it certainly seems to be the enemy of president trump. this obsession to have a gotcha moment with the press secretary, aren't there bigger things going on in the country? david: there are but the point is it's the press so they want to talk about themselves. >> that's right. that's why everyone hates us. we are all in love with ourselves and we are very good at dishing it out and not taking it. david: joe besecker -- bill mcgurn thank you very much. les moonves expected to answer questions among sexual assault allegations. new details about the future the company. we will bring it to you live with closed-captioning as soon as it begins. david: i love that closed-captioning. other ceos in hot water. jack dorsey is responding to

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>> is silicon valley going to chairman -- we don't like their visa were going to suppress them so that's concerning for all americans really believe in freedom of speech and more than anything we want to know the social media platforms are being fair and honest and transparent with their users. les ronna romney mcdaniel addressing recent allegations of his conservative censorship known as shadow banding. twitter is to eject or as a responding in an interview with my next guest. listen to this.

>> there a few things happening. one, we shifted to a ranked timeline two years ago. we started ranking based on what our algorithms believe that you will find more adjusting, that you will find matters. spaced on who you follow. it's based on who you engage with. it's not a son decisions that we make. melissa: guy benson "fox news" contributor and a host of benson and harv your new show. what did you think about that response? >> we had a really fascinating 13 minute interview if people want to listen to the whole thing. he went on to say that there are a couple of different factors going on and this is actually very complicated if you are not a twitter user and especially if you are not tech-savvy. there are different elements of what people are saying is a so called shadow band which the company insist they do not do but there are other elements that they can exercise and other

tools at their disposal that can reduce someone's visibilities to the average twitter user. some of that is based on algorithms where the computer is speaking broadly making these decisions and one of them is when you search someone's name prominent people who are close to that search will often auto populate like a drop-down menu. if you were typing in melissa trying to find your name if you got to melissa and i think it's a and then fr in your name isn't showing up for some reason you are on "fox news" and fox business network. why are you showing up? that was happening to the rnc chairwoman and members of congress and jack dorsey told me that was a mistake. it was wrong and it was corrected on twitter is part. i think they are very much aware of concerns that out in silicon valley it's putting their thumb on the scale against

conservatives and the reason to sit down with me is at least to try to be more transparent and address these concerns head-on rather than just sending out a tweet of hoping that's good enough. melissa: what was also disturbing for people out there could be someone that used to populate your screen before. when he said in his answer depends on who you are and who you follow that struck me as false because if somebody you would have seen a lot before all of a sudden disappear. i had this experience from my particular profile as i went through there looking for someone and it makes it seem like the explanation wasn't accurate. >> the explanation was partially true but yes there have been instances that aren't fully explained by what he said. he did note in the interview that the function where they

changed their algorithm where they try to boost relevant tweets that their system believes will be more relevant, you can turn that off as a user. you can go back to the old timeline that was based only on the time at which tweets were sent but you have to go in there and manually do that yourself. by the way malless another thing i asked about because i thought this was very important ultimately they can talk about algorithms, they can talk about the machines in the way that they operate. they are human beings who make important decisions as for content and silicon valley is notoriously left-wing. i was at a conference, twitter had all of their global employees in one room. there were almost 4000 people. i spoke on a panel and i asked off camera i wonder what percentage of those people out there would have voted for donald trump or voted for the republican party and my guests is it's a very small number.

he said yes we do have an ancillary problem and we have heard here in big tech that there are people and on twitter, there are people within the company who hold views who feel like they cannot speak up and give those views, shared those views out loud in the starter culture. he said that was not acceptable and they have to do better. melissa: and it's everywhere. facebook have two liters who have political aspirations you are far on the left. i looked at my own profile yesterday and it's become a really dicey thing. guy benson thank you. >> too bad we don't have more time because les moonves we are expecting and to speak any moment and we will be covering his conference with investors coming right back. stay tuned. if you're on park street in reno, nevada,

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david: we are just seconds away from the cbs conference call as everyone waiting to hear what ceo les moonves has to say

amidst allegations of sexual misconduct against him, primarily from a piece by ronan farrow which was in the "new yorker" magazine. deirdre, jason, david are back with us. this is all right now in the hands of two law firms, two law firms are looking into the allegations. if they prove the allegations to be true, just ones we know about, does that mean that moonves is out? >> well so far the board is giving him of course the benefit of the doubt. one thing i will say, they came from a source of mine, david, i will read the notes. if moonves is fired, but there is no fault found, he will draw more than $184 million in pay and benefits as part of his exit. david: wow. >> to your point that has to be no-fault exit. david: i have to cut you off, deirdre. let's listen to the conference call. cbs. les moonves in just a moment?

mr. adam townsend, please go ahead. >> good afternoon, everyone. welcome to our second quarter 2018 earnings call. joining us with today's remarks, leslie moonves, our chairman ceo, joe ianniello chief investment officer. following conference call will be at justed on basis. second quarter 2018 results are adjusted to include restructuring charges, costs related to other corporate matters. non-gaap financial information related to call can be found on our website. note that statements, conference call related to matters not historical facts risks and uncertainties that can cause actual results to differ. cbs corporation sec filings. earnings release related to today's presentation can be found in the investors relations section of website, cbs.com.

in light of any litigation, advice of counsel, scope of the call and any questions will be limited to quarter results of company. >> >> thank you, adam. good afternoon, to everyone today. to 1.12. our 3 this consecutive quarter eps growth. both revenue and eps were second quarter records for us. we remain firmly to deliver full-year results we told you. beyond that we're as confident as ever the strategy we have in place is setting us up for continued long-term success. reason we have such great confidence because we are constantly staying ahead of changes taking plays across our industry. as we do we're taking full

advantage of all the content across new forms of distribution. in fact there are a few companies as uniquely positioned to profit from the explosion of premium content on new platforms as we are. offer direct to consumer services are becoming mainstream, we have our own well-established platforms that are growing right along with consumer demand. our two cornerstone digital distribution services, cbs all-access, and showtime ott, are surpassing expectations. we are here today in that regard. as we, our goal was to have 8 million subscribers from all-access, and showtime ott. i'm pleased to tell you today we're now on track to hit the number in twit of full year -- 2019, a full year ahead of schedule. based on growth potential and trends i'm seeing new targets.

we have 15 million subscribers of all-access and showtime ott by 2022. in other words we plan to double our original goal in just two additional years. that doesn't even include the subs, we're just beginning to get international. already we're having terrific early success in canada. where all-access launched in april. our growth rate in canada just as fast as it was when we launched here in the u.s. we're getting ready to expand in australia. we'll add more and more markets year after year. we'll entering territories where our content is already in great demand and over the top platforms are gaining huge traction, particularly among younger viewers. we have a tremendous opportunity to grow even more. at same time, we're also growing our ott services led by cbs and digital network. cbsn all-time high for street and quarter on heals of a record-setting q1 as it

continues to attract new and younger viewers. these viewers are watching cbsn in multiple ways and connecting with mobile devices. we continue to build upon the success. just yesterday we announced plans to launch direct to consumer channels in ono television markets with a new service called cbs and local. these local ott channels will feature live streams, our nation's newscasts as well -- programing and extensive library of on demand content. we will start by launching in new york in the fourth quarter followed by l.a. and other markets in 2019. again, this is another way to deliver our content directly to consumers how they want it, giving advertisers a new targeted way to reach younger viewers. we're already doing cbs, our tinning tall sports network. six months after its debut, sports hq continues to generate more streams and significantly more daily youers than cbsn did

after its launch. we're seeing spikes in viewership during all the big sports events, nfl, nba drafts, triple crown and world cup in addition sports hq with our sports line website stand to benefit from the recent supreme court ruling on sports betting creating a new ad category as well as drive demand across related content. coming up this fall we'll bring another one of our marquee entertainment tonight over the top. et recognized brand and entertainment news. as we have done with news and sports, ott service, will bring content to audience in whole new way. add supported streaming services, cbsn, local, cbs sports hq and "e.t." live can be bundled with all-access and show time ott one comprehensive consumer platform.

no one has better offering of news, sports, local programing than we do. these over the top services have the added benefits giving us greater cross plat recall toking and cross promotional opportunities. broadband services are benefiting driving adoption of skinny bundles and vert all mpd. hulu live, youtube tv and playstation includes more traditional bundles backed by terrific partners for us as well. no matter the size of the bund kel we continue to negotiate deals with the distributors at higher rates that better reflect the fair value of our content. second quarter we renewed our agreement with the third largest mvp -- that means that over the last 1months, deals with three of the top distributors in the industry, dish and charter, giving us more confidence than ever we will achieve the goal of $2.5 billion in annual retransfer, reverse comp revenue by 2020. while we achieve higher pricing

we're also growing total subscriber number at showtime and cbs and new and traditional forms of distribution. pay per views grown sequentially and year-over-year for consecutive quarters. cbs our second quarter was total subscriber growth up 6% and average rate per sub up nearly 30%. so at a time when many companies are losing subscribers or cutting rates to maintain them, we are grow egg. as we do our average subscriber rate sin creasing at even faster pace. the driving force behind this growth comes down to one thing, our premium content. clearly the cbs corporation has content that audiences and distributors have to have. each month more than 90% of the u.s. population watches our programing on one or more platforms. no matter how or where people choose to watch programing it is clear they want to watch as content produced by our company. satisfy this demand we're ramping up our production

output. new series across 10 broadcast cable and streaming outlets including netflix, apple and tbs. that is more than double the number of series and double the number of outlets that we sold to just five years ago. in addition we have just two dozen pilots in development, streaming companies, amazon, hulu and we increase amount of programing for 30 party distributors we're driving growth at our content license business. this is particularly true in the global marketplace where demand for premium content remains extremely healthy. we signed licensing deal with international broadcasters for our new fall series before they even aired in the u.s., including. all of this means that content licensing and -- are having a bigger and bigger impact on raw results overall results during the second quarter, revenue represented 62% of overall revenue. only 38% came from advertising.

and the best part of that is that advertising also grew during the second quarter up 2. advertising continues, continues to become part of our total. it remains a very important part of our business. we set up for continued strength here as well. once again, another terrific up front with healthy demand in day time, news, prime time, and late night. ctms up high single, low double digits, volume grew as well from the prime time entertainment lineup to sunday nfl package. programing was well-received. we sold a number of units with the grammys which we have on back-to-back weekends in first quarter of 2019. the momentum continues in the third quarter with h with revenue up 20%. this is the first time in up front marketplace with our intigrated podcasts an digital sales teams and results digital volume was up nearly 40%. continue to leverage the power

of targeted digital advertising. -- tv. of course premium content on the cbs television network is the reason we were able to deliver strong up front sales year in, year out and we continue to have the best there is. in fact this past season our prime-time line-up was put to the test like no other when two of the highest-rated television events the super bowl and olympics aired on nbc. our prime teen line up proofed unbeatable. we finished the season as the most watched network, and for the 10th year in a row. in the fall we put together another great schedule in addition to 7 re returning series, six new shows, return of "murphy brown" and series by dick wolf among others there is no stronger promotional platform than the cbs television network the best part we own new shows

means will we have more opportunities to monetize them in years to come. let me make a bold prediction that isn't that bold. our new schedule along with the super bowl, no olympics to program against the cbs television network will finish number one for the 11th consecutive year. we continue in late night with "the late show with stephen colbert," number one in the time period, second year in a row, beating closest competitor by million viewers. jails cordon gross on line. car karaoke segment with paul mccartney was viewed more than 12million times. cbs news has significant firsts. cbs evening news was the only anchor to interview president trump and after the recent summit with vladmir putin. cbs this morning gayle king first network anchor to talking from texas about the separation of children from the border.

norah o'donnell the only network anchor to report from annapolis the morning after the capital gazette newspaper shooting. we continue to distinguish ourselves with hard news approach. in sports we're gearing up for nfl football this fall. we have high number of high-profile, afc and ffc matchups. afc championship game in prime time and the super bowl on cbs for the first time our all-access somebody scribers will be able to steel the football coverage any connected device they want, including mobile phones thanks to a new deal we have the nfl. in addition to the nfl all-access has great lineup original programing coming this fall. a exciting thriller called one dollar. a new show from kevin williamson, tell me a story, the return of the will ferrell comedy, no activity. this 2019 we'll bring out our heavy hitters "star trek: discovery, reimagination of

"the twilight zone" from the jordan peele. all-access, to live sports and special events and current most watched inentertainment line up, to thousands of hours of library programing, no other network offers such a full array of must-have content. every time we add more programing, all-access grows, we expect that trend to continue. premium content is also driving growth at showtime, during the quarter we launched a highly aclaimed limited series, patrick melrose, which earned five emmy nominations, best actor for benedict cumberbatch. we premiered controversial's who is america, from sacha baron cohen. road ahead for showtime is extremely compelling. this fall we launch a new comedy called kidding from jim carrey and. also in the works are -- a

series based on the popular video game we're producing with stephen spielberg television. city on the hill, kevin bacon and matt damon. and black monday starring done cheat dell. we continue to add to the content pipeline. turning to publishing terrific line up best-selling authors continue to deliver hits. no one more prolific than stephen king who delivered a another best-seller in the quarter with the outsider. hulu will have another -- also ahead we'll have new titles from bob woodward, and mary higgins clark. in local we're set up for strong second half of at our tv stations as well with so many critical races in contention, political spending is already ramping up. our political revenue nearly doubled it was during the last midterm election in 2014. plus thanks to the legalization

of sports betting dollars at wyw in philadelphia and expect the same in new york as well soon. so, as you can see, our strategy is clearly working. our bays advertising business is strong and we continue to grow new revenue streams from all the ways we're licensing and distributing our ever increasing portfolio of premium content. key to the success is expansion of direct to consumer services across entertainment, news and sports programing and internationally as well. this is the path the world is moving toward and our expanding team is right there at the forefront. so we're set up for long-term success with changes underway only enhancing opportunities. once again we feel very good about our record results today, even better about the cbs growth story in the future. with that i will turn the call over to joe. >> thanks, les. our investment in key growth initiatives continue to pay off with record quarterly results. cb is evolving into a global

premium content company with significant direct to consumer offerings. it is all because of our company produces the content that audiences have to have and gives it to them in all the ways they want it. as a result of this strategy, we are growing through a diverse of mix of stable and predictionable revenue than ever before. for the first half of the year revenue grew 10% with strong increases across all three of our key revenue types. affiliate and subscription fees were up 16%. content licensing and distribution was up 10% and advertising was up 5%. so while advertising revenue grew solidly, our non-advertising revenue is growing even faster and now makes up approximately 60% of our total revenue. at the same time we continue to increase our profits first quarter of the year eps was up

18%, $2.47. we are continually demonstrating we can drive eps growth year in and year out even as we are ramping up our investment in our content and distribution services. let me give you more details about our second quarter results. revenue for the quarter was up 6% to $3.5 billion. again, with solid growth from all three of our key revenue types. affiliate and subscription fees were up. reverse comp led the way up 25% for the quarter. and revenue from bundles and direct to consumer services grew 70%. content licensing and distribution was up 4%, as you heard, we are creating more content than ever before. both for our own networks and streaming platforms as well as third party distributors. you're seeing the benefit of that in our results today.

in fact the number of hours of our premium content we produced for first half of 2018 grew 30% from what we did same period last year. advertising for the quarter was up 2% as the benefit of network 10 offset the absence of the final four. at the same time underlying network advertising at cbs television networks was up a solid 1%. advertising marketplace remains strong and we are on strack to generate 4 billion in network advertising in 2018 which is up -- for each of the last several years. also during the quarter we turned in record-set second quarter profits operating nick was up 1% to $694 million and eps was up 8% to $1.12. let me turn to our operating segments. entertainment revenue for the second quarter was up a healthy 8% to $2.4 billion. affiliate subscription fees grew

37%. once again, driven by strong gains in reverse compensation and all-access and skinny bundles. distribution revenue was up 4% and advertising was up 3%. entertainment operating income was up 1% to $356 million. this growth absorbed -- as well as launch in marketing of our distribution services. at cable, for the quarter was up 4% to 591 million. our showtime -- year-over-year in both our over the top and traditional distribution. demonstrating that our original series continues to attract and retain audiences no matter how they watch our content. -- operating income grew to $256 million, while we continued to invest in more programing. our cable networks operating income margin came in at a robust -- percent.

in publishing, revenue in the quarter grew slightly to 207 -- from digital awed yes which was up 27%. in addition to the steven king book les told, but best-selling titles in the quarter, the restless wave by senator john mccain, spymaster by brad thor. operating income for the second quarter was up 7% to $31 million, higher sales and lower production costs. media, revenue during the quarter was up 2% to 4 -- given by growth and trends. in advertising the story this year is political. we already beginning to see huge ramp ups along the way. in addition during the second quarter former and entertainment categories grew strongly as well. local operating income nor the quarter was even from last year at $128 million. turning to cash flow, free cash flow for the quarter came in

$296 million, nearly doubling from last year. the increase was driven by lower taxes from changes in the law and we are reinvesting savings back into the business to create additional content which is our best use of cash. also during the second quarter, we repurchased $200 million of our stock, that at the end of q2 had $2.7 billion remaining under our current repurchase program. now let me tell you what we see ahead. local media revenue is pacing to be up double digits in the third quarter as well get closer to the midterm elections. at the network, a you heard, pricing remains extremely strong up over 20%. plus we just had another successful up front. key pricing gains on higher volume as well. and our digital up front was -- again, up strongly in volume and pricing. advertising base is well-positioned for q4 and well

into 2019. affiliate and subscription fee revenue we're clearly firing on all cylinders. les said 16 million subs from show time all-access and by 2022. that doesn't include any international subs we're continuing to roll out. in addition we will reset about -- retrends and reverse content over next, even better news that means -- foot print is already locked in at rates consistent with our stated goals. so we are set up for strong secular growth across traditional and digital forms of distribution. in content licensing we will continue to reap the benefit of our increased programing and production output. once again this will own more than 80% of lineup on the cbs television network including six new series. in fact, when you consider all

of the cbs content we create today, from morning and evening news, and from day time, prime time and late night, we produce more than 13 hours of original programing per day. this allows us to feed our direct to consumer services with fresh content all the time, and distances us from our peers. in addition -- we are also producing more shows for showtime, more shows for, more shows for cable and more shows for the evening players. creating premium content is core to what we do. across the cbs corporation we are spending more than $7 billion a year on programing which is on par with some of the largest companies. look at our batting average of hits and all the licensing of our content around the world, how our programing is driving higher rates of growth especially at our direct to consumer services it is clear

that no one is better monotizing these valuable shows than we are. content is our live blood and it is where we get our best return on investment. going forward we will continue to innovate an invest on the opportunities in a changing media landscape. content and distribution services will drive future growth and we do not need to take on any new debt to do that. as we have always said first and foremost the best use of our cash is to reinvest in our business, given our track record of success we're confident this will generate the highest shareholder returns. so in summary, we turned in another terrific quarter as we make our way to yet another record year for the cbs corporation. as we continue to execute on our strategy, we are distributing and monetizing our content in new and exciting ways and growing and stronger and more diverse revenue mix as a result. so we remain on track to

deliver -- 2018 financial results we promised you with revenue growth in the high single-digit and tv growth in the high teens. i don't know that we are at the time up to achieve long-term goals as well including our new target of 16 million domestic over the top subscribers from all-access and showtime ott by 2022. so we are very confident about our future and our prospects for continued long-term growth. and with that, greg, let's open the line for questions. >> absolutely, sir. ladies and gentlemen, for any questions, please signal by pressing star on the telephone keypad. make sure the mute function to al us to receive the signal. star 1 for any questions. we'll hear from ben swinborn from morgan stanley. >> thank you, good afternoon. les on over the top success can you give us success where you're seeing -- channel, cbs and show time or distribution channel

and -- direct to consumer. give us a little bit of play for about what is driving the. when you think about programing, historically you obviously been limited by your schedule in an ott world. there is no limit. what's the capacity for -- the team that you have to ramp up production meaningfully further than you have before, but just talk about the ability and capacity of the pipeline to take this to a whole new level as you look next couple years. >> ben, amazon has been absolutely amazing in terms of subs. they have, they have been at the top of the list. we like what they're doing and you know, we would say we get more -- than any of our other partners although some of the others are more recently in the ballgame. in terms of capacity you know, we been faced with actually very good problems because all the --

showtime guys come in to see us david wants all new programing. so are the all-access guys. they are really hungry to do a lot more. what our capacity is we haven't determined yet. i think you could see us add, you know, five shows to each one of them over the next couple years at least, depending what the pipeline is. certainly they have proven themselves. showtime has been sort of making a lot of hits. obviously all-access is a newer entry into it but we're really pleased with their hunger to do more and, as we -- marketplace spikes more new shows means more. >> great. just to follow-up for joe. looking forward to the back half, no "thursday night football." can you give us a sense help us think about the implications of that in terms of margins or how you guys thought about scheduling that night and competing with "thursday night

football" now on. >> yeah. ben, obviously -- can go up. obviously we won't have, "thursday night football" generates i think if you look at our thursday night line up, it is strong. we have a comedy block for two hours with some, you know, greatest shows on television. feel good about the real estate. we're using it and we own most of those franchises. so there i will be, long tail to these franchises in years to come. >> thank you. >> thank you, ben. next question, please. >> comes from jeff -- with bank of america merrill lynch. >> thank you. i guess, amazing how much you diversified cbs's revenue three to five years but seems like advertising got a big boost from sports gambling as you mentioned. beginnings of it. could you give some color -- sounds like might be local

initially. will it move. any comments on the potential size of this market? and since you brought up amazon as a seller of showtime, you know as they prepare to enter the advertising market and they know who the sub is are, do you guys have a point of view yet on where the advertising dollars -- liz: cbs in firestorm of controversy amidst sexual assault allegations surrounding ceo les moonves. he is not talking about the sexual allegations. deirdre bolton in the newsroom. >> the company for the second quarter beating on top and bottom line. but i'm going to just read the statement. limiting topics to the financials. this is official comment to liz, official quote in light of pending litigation and other matters and on the advise of counsel. cbs execs will only discuss financial earnings on the call this aft.