Earnings: CBS 3Q Profit Plunges; Moonves Touts Digital

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)

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