×
You will be redirected back to your article in seconds

CBS 3Q Profit Rises on Digital Subscriptions, Affiliate Fees

CBS said third-quarter profit rose largely on strength in revenue from affiliate and subscription fees, a testament to the company’s ongoing efforts to find sources of revenue not related to the advertising that fuels its flagship TV network.

The quarterly report is the first the company has delivered since the ouster of former Chairman and CEO Leslie Moonves in the wake of allegations of sexual harassment levied in two reports in the New Yorker. Moonves has denied the allegations.

CBS said fees related to distribution of its programming and revenues from digital efforts, such as its subscription video-on-demand outlet, CBS All Access, rose 32% in aggregate, helping to boost the company’s overall revenue by 3%, to about $3.26 billion from about $3.17 billion.

CBS said net income from continuing operations in the third quarter came to $488 million, or $1.29 per share, compared with $418 million, or $1.03 per share, a year earlier.

Stripping out one-time items, however, net earnings came to $488 million, or $1.29 a share, compared with $592 million, or $1.46 a share, a year earlier.

In a statement, Joseph Ianniello, the company’s president and acting CEO, said the company’s programming, which includes series such as “Billions” and “The Good Fight,” was “driving subscriber increases across all platforms, citing “the recent launch of ET Live and the pending launches of 10 All Access in Australia and CBSN New York, with more international and local outlets on the way.”

CBS said operating income for the third quarter fell 5% to $690 million. compared to $729 million in the year-earlier period, citing “a result of costs relating to corporate matters.” The company had been embroiled in a legal battle with its controlling shareholder, National Amusements Inc.. and several top executives have left the company in the wake of Moonves’ departure.

At CBS’ largest unit, the one that includes the CBS television network and its TV stations, revenue increased 19% to of $2.15 billion compared with $1.82 billion for the year-earlier period, CBS said advertising revenues increased 16%, owing largely to its acquisition of Network 10 in Australia in the fourth quarter of 2017.

The company’s cable networks generated revenue of $569 million, tumble of 32% from $840 million in the year period. CBS cited the presence of revenue from Showtime Networks’ distribution of the Floyd Mayweather/Conor McGregor pay-per-view boxing event in the third quarter of 2017 as a reason for the shortfall.

CBS said it intended to roll out a new data offering called “DNA” that would allow advertisers to buy more narrowly defined audiences. Several other media companies have also pursued similar efforts, with Univision, NBCUniversal, Viacom, Fox Networks Group and AT&T’s Turner combining forces to form “Open A.P.,” a consortium that helps marketers define audience segments and make purchases of ad inventory they are most likely to see.

More TV

  • RENT: Top L-R to Bottom L-R:

    TV Shows to Watch the Week of Jan. 21, 2019: 'Rent: Live,' 'Celebrity Big Brother'

    Welcome back to Tune In: our weekly newsletter offering a guide to the best of the week’s TV. Each week, Variety’s TV team combs through the week’s schedule, selecting our picks of what to watch and when/how to watch them. This week, “Rent: Live” airs on Fox and “Celebrity Big Brother” returns for a second [...]

  • Black Monday: How Showtime Dusted Off

    'Black Monday': How Showtime Dusted Off An Old '80s Logo For Its New Comedy

    Cocaine’s a hell of a drug, but you’re not seeing things: That, indeed is Showtime’s old 1980s-era logo pasted all over marketing materials and promos for “Black Monday,” a tongue-in-cheek tale of the excesses exhibited by Wall Street traders in the lead-up to the stock market crash of 1987. The logo, which hasn’t been in [...]

  • 'Russian Doll' Review

    TV Review: 'Russian Doll'

    This is a particularly tricky review to write, but not because the merits of “Russian Doll” are at all ambiguous. On the contrary, the show is so striking and smart that I made a note to include it on my favorite TV shows of 2019 immediately after blowing through the season — which is saying [...]

  • Black Earth Rising Review

    TV Review: 'Black Earth Rising'

    Bringing to bear a talented cast on a story of real geopolitical significance, “Black Earth Rising,” Netflix’s drama about the long-tail aftermath of the Rwandan genocide, would seem to have had the potential to be one of 2019’s early television successes. Which makes its falling short all the more painful and pronounced. The show, previously [...]

  • DIRTY JOHN -- "This Young Woman

    'Dirty John' Finale Hits New Ratings Highs in Live+3

    The Season 1 finale of “Dirty John” on Bravo continued the scripted show’s ratings hot streak in Live+3. The finale, which aired on Jan. 13, grew to 3.3 million viewers in delayed viewing with 1.3 million of those falling in the key adults 18-49 demographic. That is up 10% in total viewers and 15% in [...]

  • Sky and Warner Bros. Alums Join

    Sky and Warner Bros. Alums Join ITV-Backed Production Company Possessed

    Former Sky One and Sky Living programming chief Adam MacDonald has joined Possessed, and will be the ITV-owned production banner’s first chair. The U.K.-based unscripted producer has also hired Lesley Davies, former head of international production at Warner Bros. She will head up production. The double hires follow a recommission  of gameshow “5 Gold Rings,” [...]

More From Our Brands

Access exclusive content