CBS revenue, profit beat estimates as affiliate fees rise

Markets Reuters

CBS Corp , owner of the most-watched U.S. TV network, reported a better-than-expected quarterly profit and revenue, helped by an increase in fees from CBS-affiliated stations as well as growth from digital distribution platforms.

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CBS, home to popular shows such as "Homeland" and "The Big Bang Theory", said revenue rose 4.3 percent to $3.396 billion in the third quarter.

Analysts had expected revenue of $3.34 billion, according to Thomson Reuters I/B/E/S.

Revenue from CBS's affiliate and subscription fees division rose 13.4 percent to $753 million in the quarter. Revenue from its content licensing and distribution business, one of its fastest growing, rose 6 percent to $1.11 billion.

The company said ad revenue, which accounts for more than 40 percent of total revenue, fell slightly to $1.47 billion.

CBS said net income from continuing operations rose to $514 million, or $1.15 per share, in the three months ended Sept. 30, from $426 million, or 88 cents per share.

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Excluding items, CBS earned $1.05 per share, beating the average analyst estimate of 98 cents per share.

CBS has been trying to beef up its online streaming services to attract young viewers, who are ditching the traditional television services.

Alphabet Inc's Google reached an agreement with CBS to carry the network on its planned web TV service, Reuters reported last month.

Apart from its main stay cable business, CBS is also home to publishing house Simon & Schuster.

The company's shares were up just under 1 percent after the bell.

(Reporting by Rishika Sadam in Bengaluru; Editing by Savio D'Souza)