CBS said its 3Q profit plunged 55 percent amid declines in its radio and its home entertainment businesses. Net inome was $316.9 million, or 41 cents per share, compared with $708.5 million, or 90 cents per share. Revenue was $3.37 billion, little changed from a year earlier. Excluding certain costs, profit was 42 cents. Analysts were expecting earnings of 40 cents per share on revenue of $3.43 billion.
Chairman Sumner Redstone gave CBS CEO Les Moonves a pat on the back in an earnings statement: “CBS Corporation in on the right track. I am encouraged by the strategic vision that Leslie and his team have put forth to capitalize upon the tremendous opportunities unfolding in the digital age.”
Moonves added: “Through innovative partnerships with YouTube, Yahoo and many other key new media concerns, we’re aggressively pursing opportunities that help us extend our world-class mass-appeal content to new digital platforms and get paid for it. As a premiere content company, we continue to be pleased with new technological developments that allow consumers to more easily enjoy our content and extend our reach into digital space.”
Some highlights:
—Television revenue was $2.15 billion, little changed from a year earlier. Operating income rose 10 percent to $414.4 million.
—Radio revenue dropped 6 percent to $508.1 million while operating income dropped 10 percent to $201.7 million.
—Publishing revenue rose 2 percent to $197.4 million while operating income fell 13 percent to $20.3 million
More later from the conference call.
MKTW: “CBS Corp. on Thursday reported a third-quarter profit that was less than half its year-earlier total, when it and Viacom Inc. were a single company, but earnings from continuing operations rose sharply on improved results at the CBS television networks and stations. ... Though Viacom was widely expected to be the more dynamic of the two entities, it is CBS that has seen its stock price grow by 20%, bolstered by three dividend increases and the perception that Chief Executive Les Moonves has positioned the company to adapt to technological changes in the entertainment business.”
Earnings release| Conference Call (replay)