Net income of the company rose 31 percent to $370 million or 55 cents a share, due to receipt of higher fees from pay-TV systems and affiliate stations. The company said that lower revenue in the quarter was the result of absence of political ads. Falling ad sales and declining revenue from rerun syndication were countered by higher margins and revenue from pay-TV systems and affiliates for its programs, as CBS hosted 19 of the 25 most-watched prime-time programs last week.

 

The CEO of the company said that it is benefitting from diversifications being done. In extended trading, CBS stock dropped as much as 2.8 percent to $28.75. At close yesterday, the company's stock fell 0.8 percent to $29.54 in New York. It is up 8.8 percent this year. The company’s profit of 57 cents beats the 53-cent average estimate of analysts. It also reported that there was an increase of 8 percent to $460 million in revenue from affiliates and pay-TV services, whereas its advertising sales dropped 4.4 percent and content licensing slipped 4.8 percent.