CBS Q1 Profit Down - Update

(RTTNews) - CBS Corp. (CBS, CBS-A) Thursday reported a drop in profit for the first quarter, hurt largely by lower revenues and higher entertainment and networking costs.

The New York-based company's first-quarter earnings dropped to $394 million from $468 million last year. On an adjusted basis, earnings were flat with last year's at $0.78 per share, due to lower number of shares outstanding.

CBS said its revenues for the quarter dropped to $3.50 billion from $3.57 billion a year ago.

The company said its revenues declined due to one fewer National Football League playoff game on its CBS Television Network as well as on lower advertising revenues at its local broadcasting segment.

Entertainment revenues for the quarter decreased to $2.26 billion from $2.30 billion, while Cable Networks revenues rose to $539 million from $537 million a year ago. Publishing revenues dropped to $145 million from $153 million, while local broadcasting revenues declined 5 percent to $596 million.

"CBS turned in another quarter of record EPS, and our investment in world-class content will lay the foundation to drive future profits," said CEO Leslie Moonves.

Operating profit for the quarter dropped to to $702 million from $791 million a year earlier, reflecting largely higher entertainment and cable networking costs.

CBS closed Thursday's trading at $61.22, up $0.10 or 0.16%, on the NYSE. The stock further gained $0.63 or 1.03% in the after-hours trade.