CBS.WD Cbs Corp.

By Micah Maidenberg and Benjamin Mullin 

CBS Corp. said the Super Bowl bolstered its advertising results, helping push up profit in the latest quarter, but the media company missed revenue expectations amid a weaker performance in its cable networks business.

The company on Thursday also said revenue from its direct-to-consumer streaming services reached a record level, with subscribers to its CBS All Access product and its Showtime OTT streaming service growing 71% from a year earlier.

The advertising gains highlight the importance of live sports for CBS's broadcast operations. Executives have already started discussing a new deal with the National Football Association, even though its deal with the league runs through 2022.

The company said advertising revenue rose 18%, driven by the broadcast of the Super Bowl in February on the CBS Television Network. However, revenue in the company's cable networks business declined 3%, due in part to lower programming sales.

Overall, sales increased 11% from a year earlier to $4.17 billion. Analysts expected $4.3 billion, according to FactSet.

Shares fell 1.4% in postmarket trading.

New York-based CBS reported a profit of $1.58 billion, or $4.21 a share, compared with $511 million, or $1.34 a share, a year earlier. The company recorded a tax benefit in the first quarter and a $549 million gain from the sale of CBS Television City in the quarter, both of which pushed earnings higher.

CBS's profit was also propelled by growth from its local media unit, where operating profit increased 17% compared with the same period last year.

After adjustments, CBS earned $1.37 a share, a penny more than what analysts were looking for.

CBS has faced a range of personnel challenges in recent months, including a legal battle with its former top executive, Leslie Moonves, who resigned after facing numerous sexual misconduct accusations. He has denied those charges.

Last month, the company suspended its search for a new leader and said acting Chief Executive Joseph Ianniello would continue in that role through the end of the year.

Write to Micah Maidenberg at micah.maidenberg@wsj.com and Benjamin Mullin at Benjamin.Mullin@wsj.com

(END) Dow Jones Newswires

May 02, 2019 17:20 ET (21:20 GMT)

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