CBS Stock Price Up As $3.4 Billion Third-Quarter Revenue Beats Expectations
November 3, 2016 at 1:34 PM (PT)
CBS announced its third-quarter financial results TODAY, with its shares earning $1.15, up from 88 cents a year ago and 17 cents more than WALL STREET predicted. Revenue came in at $3.4 billion, beating analyst expectations of $3.34 billion. Last year in the same quarter, CBS reported $3.26 billion in revenue.
Operating income increased 6% to $798 million from $753 million for the same prior-year period, reflecting the higher revenues, which were partially offset by increased investment in programming.
Commented CEO LESLIE MOONVES, who is thought to be in line for the top spot in a proposed merged VIACOM company: "CBS is clearly knocking the cover off the ball, including revenue and profit growth across every one of our operating segments.
"Our premium content continues to be the driving force behind our success, starting with the CBS TELEVISION NETWORK, which kicked off another terrific season as the #1 network, with the #1 new drama, 'Bull,' and the #1 new comedy, 'Kevin Can Wait.' With ownership in all of our new fall shows, we have once again positioned our Company to monetize additional content across all platforms for years to come. This includes content licensing and distribution, which benefited from a 40% increase in streaming revenue during the third quarter. It also includes affiliate and subscription fees, where retransmission consent and reverse compensation grew 32% during the quarter, and where we continue to see rapid growth in our subscription streaming services, CBS ALL ACCESS and SHOWTIME OTT. Meanwhile, advertising remains strong and is accelerating here in the fourth quarter as our new upfront pricing kicks in and political spending is ramping up nicely. Looking ahead to the separation of our radio business, we see additional opportunities to return value to shareholders and invest in our core content business. So we feel extremely good about our future, and we are confident we have set ourselves up to succeed under any scenario."
Both VIACOM and CBS are controlled by Chairman Emeritus SUMNER REDSTONE's NATIONAL AMUSEMENTS holding company.
After PHILIPPE DAUMAN was ousted as CEO by REDSTONE, he was replaced by TOM DOOLEY, who will step down NOVEMBER 15th, with BOB BAKISH named acting CEO (NET NEWS 10/31).