CBS Sales, Adjusted Profit Tops Views
February 15 2018 - 5:12PM
Dow Jones News
By Imani Moise
CBS Corp. reported higher-than-expected sales as it mulls a
potential merger with Viacom Inc.
The company also gave an upbeat outlook for 2018, forecasting
revenue growth in the high-single digits and earnings per share
growth in the the high teens. Analysts polled by Thomson Reuters
had forecast sales growth of 4.5% and adjusted earnings growth of
18%.
Affiliate and subscription fees, which include revenue from
streaming services and traditional bundles, rose 20% during the
quarter while advertising revenue fell 2.8%. Ad sales were hurt by
lower levels of political advertising than the year earlier quarter
which included the presidential election.
Content licensing and distribution revenue grew 33%, driven by
strong growth from both domestic and international licensing
sales.
Earlier this month, CBS and Viacom's boards disclosed that the
companies were evaluating a deal to reunite the two big pieces of
Sumner Redstone's media empire. CBS Chief Executive Leslie Moonves
has resisted the idea in the past and is said to still have
concerns about a combination.
Viacom reported a deeper-than-expected revenue decline and
falling adjusted profit for its first quarter earlier this
month.
Overall for the fourth-quarter, CBS's loss narrowed to $41
million, or 10 cents a share, compared with a loss of $113 million,
or 26 cents a year earlier. On an adjusted basis, the company
reported a profit of $1.20 a share up from $1.11.
Revenue rose 11% to $3.92 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.14 a share on sales of $3.7 billion.
Shares rose 1.52% during premarket trading. The stock has fallen
13% over the past year.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
February 15, 2018 16:57 ET (21:57 GMT)
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