CBS Corp, a TV broadcaster and media firm, fell short of the estimates of analysts for first-quarter revenue today after it was affected by a drop in content licensing and distribution sales.
The revenue from its content licensing and distribution segment dropped by 3.2 percent to $963 million in the quarter, sending its shares down by more than 1 percent to $49.70 in after-market trading.
CBS is home to popular shows such as “The Big Bang Theory” and the “The Late Show with Stephen Colbert.” Last month, it suspended the search for a permanent CEO and extended the role of Joseph Ianniello, its interim CEO, sparking speculation about the firm considering for the third time a partnership with Viacom Inc, a sister company.
While media majors AT&T Inc and Walt Disney Co are tapping into their extensive film and TV libraries in order to launch streaming rivals to Amazon.com’s Prime video and Netflix, smaller players Viacom and CBS seem to be harmonizing their strategy, concentrating on providing original content to other distributors.
CBS said that its total revenue increased by almost 11 percent to $4.17 billion, however, according to IBES data from Refinitiv, it came in below estimates of $4.30 billion.
Its net earnings climbed to $1.58 billion, or $4.21 per share, in the three months ended March 31, from the $511 million, or $1.32 per share, a year earlier.
The company said that the year-earlier quarter included a tax benefit amounting to $768 million.
Excluding certain items, the firm earned $1.37 per share, just above the expectation of analysts of $1.36.