Television program licensing helps CBS inch past estimates
(Reuters) - CBS Corp, owner of the most-watched U.S. television network, reported a marginally better-than-expected quarterly profit and revenue, driven by higher distribution revenue from licensing its television shows.
The company's shares rose 3 percent after markets closed.
CBS, the home of shows such as "Madam Secretary", "Scorpion", and "NCIS: New Orleans", said advertising revenue grew nearly 2 percent to $1.55 billion in the third quarter ended Sept. 30.
This was driven by Thursday Night NFL games broadcast and political advertisements associated with midterm elections.
Revenue from content licensing and distribution increased about 4 percent to $1.14 billion.
Total revenue rose to $3.37 billion (2.11 billion pounds) from $3.30 billion a year earlier.
The company's cost rose as it spent more on television programming, including NFL games.
Revenue at the entertainment segment — the company's biggest — grew 1.4 percent to $1.91 billion. However, higher costs, associated mainly with NFL broadcasts, ate into operating income from the segment.
Net income from continuing operations slid to $72 million, or 13 cents per share, from $431 million, or 70 cents per share.
On an adjusted basis, the company earned 74 cents per share from continuing operations.
Analysts on average had expected a profit of 73 cents per share on revenue of $3.32 billion, according to Thomson Reuters I/B/E/S.
(Reporting By Lehar Maan in Bangalore; Editing by Joyjeet Das)
