CBS Corp. Q1 earnings fall but beat estimates
CBS Corp. pronounced Thursday the initial entertain earnings fell 16% as sports programming costs rose and revenues dipped at CBS Network and its local report stations.
The New York-based media company reported $394 million in net income, down from $468 million a year ago. But gain per share of 78 cents kick analysts’ guess of 75 cents, according to Zacks Investment Research.
Shares rose 1.3% to $62.04 in after-hours trading.
Company-wide income slipped 2% to $3.5 billion.
Revenue at the party unit, which includes CBS Television Network, CBS Television Studios and the interactive business, fell 1.7% to $2.26 billion as content chartering and placement revenues declined. Its operating income fell to $346 million from $420 million a year ago due to “a aloft investment in sports and party programming,” it said.
The wire networks unit, which operates Showtime, CBS Sports Network and Smithsonian Networks, reported a slight decrease in income — $539 million vs. $537 million a year ago. Domestic chartering revenues fell during the initial quarter, it said.
Publishing income from the Simon & Schuster division fell 5% to $145 million as it purebred lower book sales.
The internal report stations which CBS Corp. owns generated $596 million in revenue, down 5% as advertising sales dipped.
Its online headlines channel, CBSN, and the pay-to-stream service, CBS All Access, “are surpassing expectations,” pronounced CBS Corp. CEO Leslie Moonves, in a statement. “We have already stretched CBS All Access to some-more than half of the country, and we design it to be offering to 75% of all households by year’s end.”