CBS Results Boosted by Super Bowl
04 May 2016 - 6:56AM
Dow Jones News
By Tess Stynes
CBS Corp. said its first-quarter earnings rose 20% as the
broadcast of Super Bowl 50 boosted the media giant's advertising
sales.
Shares rose 1.9% to $56.70 in recent after-hours trading on the
better-than-expected earnings and revenue.
Chairman and Chief Executive Leslie Moonves said in prepared
remarks that the company's quarterly per-share earnings came in
above a dollar for the first time in its history.
"Advertising was extremely strong, growing 31% overall and 49%
at the CBS Television Network," Mr. Moonves stated.
CBS's growth in television-advertising revenue was driven by the
Super Bowl, along with additional National Football League games in
2016, and a 12% increase in underlying network advertising.
CBS previously has said it is less vulnerable to "cord-cutting"
and unbundling of cable television packages, thanks to its
investments for the future as a content company.
The company's top-ranked CBS Television Network includes popular
shows such as "Big Bang Theory" and "NCIS." This year, CBS's
over-the-top offerings such as CBS All Access and its Showtime
stand-alone streaming service, are expected to begin boosting
profits.
Over all, CBS reported a profit of $473 million, or $1.02 a
share, up from $394 million, or 78 cents a share, a year earlier.
Revenue increased 10% to $3.85 billion.
Analysts polled by Thomson Reuters expected per-share profit of
94 cents and revenue of $3.83 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
May 03, 2016 16:41 ET (20:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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