CBS Earnings Drop Amid Higher Content, Streaming Spending Ahead of Viacom Merger

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CBS Corp. earnings exceed Wall Street estimates in likely final report before Viacom merger, company touts record third-quarter revenue

CBS Corp., which is in early December expected to complete its recombination with Viacom, reported lower third-quarter earnings on Tuesday that exceeded Wall Street estimates despite increased spending on content and its growing streaming services.

Operating income for the third quarter of $501 million compared with $690 million for the same prior year period and "included costs incurred during the third quarter in connection with the pending merger with Viacom.

Advertising revenue decreased, as expected, 7 percent from the third quarter of 2018, when the company had "record political advertising sales fueled by the 2018 midterm elections." But Ianniello highlighted "solid underlying network advertising growth of 2 percent during the quarter." Meanwhile, CBS Corp.'s streaming services, CBS All Access and ShowTime, had been expected to post gains in the latest period thanks to such shows as CBS All Access' . And continued retransmission consent fee gain were also widely expected to boost results, as they did.

 

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is that merger that will benefit the shareholders, more then the consumers?

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