Revenue rose 3% to $3.26 billion. This was led by 79% growth from digital initiatives, including its owned streaming subscription services, and strong gains in retransmission revenues and fees from CBS Television Network-affiliated stations.
Looking ahead into the full year 2018, CBS remained on track to achieve its outlook, with revenue growth in the high-single digits and EPS growth in the high teens.
For the third quarter, advertising revenues grew 14%, including revenues of Network 10, which the company acquired in the fourth quarter of 2017, and higher political advertising sales. Content licensing and distribution revenues were up 8% for the quarter. This was partially offset by Showtime Networks’ distribution of the Floyd Mayweather/Conor McGregor pay-per-view boxing event, which took place in the third quarter of 2017.
Entertainment revenues increased 19% year-over-year helped by higher advertising revenue, higher station affiliation fees and revenues from digital initiatives, higher international licensing, as well as additional series produced for third-parties.
Higher print book sales and digital audio sales drove Publishing revenues higher by 5%. Local Media revenues increased 9% on growth in retransmission revenues and higher advertising revenues, reflecting increased political advertising sales associated with the U.S. midterm elections.
However, Cable Networks revenues dropped 32% as a result of Showtime Networks’ distribution of the Floyd Mayweather/Conor McGregor pay-per-view boxing event in the third quarter of 2017.
Shares of CBS ended Thursday’s regular session up 1.99% at $58.49 on the NYSE. The stock has fallen 0.86% in the year so far while it has risen over 4% in the past year.