CBS Corp. (NYSE: CBS), a mass media company, on Thursday, reported its second-quarter financial results. The company’s second-quarter profit beat estimates despite a drop in advertising sales.
CBS said that its networks will benefit from demand for political commercials ahead of the presidential election in November. The company also expects its outdoor advertising to get a lift from the London Olympics.
CEO Les Moonves said that CBS is confident 2012 will be a record year, and the company will produce exceptional results in 2013 and beyond.
For the second quarter of 2012, CBS reported net income of $427 million, representing an increase of 8% over the same period in the previous year. The company’s second-quarter earnings per share climbed 12% to $0.65, beating Street estimates of $0.59.
CBS’s second-quarter results benefited from an 8% gain in affiliate and subscription revenue. Cost cutting measures undertaken by the company also improved profit margins.
Moonves said that even with an uneven economy, CBS’s financial health is superb, content is at the top of its game, and the opportunities in front of the company are enormous.
CBS’s revenue for the second quarter dropped 3% to $3.5 billion. Advertising revenue for the quarter dropped 4.5% to $2.1 billion.
CBS shares rose marginally in after-hours trading on Thursday following the release of quarterly results. CBS shares were trading 0.79% higher at $33.30 in after-hours trading on Thursday. The stock finished 0.09% lower at $33.04 in regular trading on Thursday.
Year-to-date, CBS shares have gained 21.78%, compared to a gain of 8.53% for the S&P 500.
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