CBS Expects Surge at Streaming Operations

By Micah Maidenberg

CBS Corp. is forecasting the subscriber base at its main content-streaming services will more than triple in the next three years because growth at the platforms has been stronger than expected.

CBS raised its subscription target for CBS All Access, which allows consumers to watch live sports, television shows and other programming, and its Showtime streaming platform, to 25 million by 2022 from an earlier forecast of 16 million, a spokesman said.

The company said eight million people now subscribe to both services. In August, CBS predicted it would achieve the number of subscribers at the end of this year.

The company faces heightened competition as Walt Disney Co., AT&T Inc.'s Warner Bros and Comcast Corp.'s NBCUniversal prepare their own offerings, hoping to mimic growth at Netflix Inc.

Shares in CBS fell about 3% in light after-hours trading, but have gained 12% so far this year.

Overall, CBS posted a fourth-quarter profit of $561 million, or $1.49 a share, compared with a loss of $41 million, or 10 cents a share, a year earlier. The 2017 results reflected a noncash loss related to the spinoff of the company's radio business.

The company's adjusted profit of $1.50 a share fell short of the $1.53 a share analysts expected, according to FactSet.

CBS said revenue rose to $4.02 billion from $3.92 billion a year earlier. Analysts predicted $4.13 billion for the most recent quarter.

The company's entertainment segment, which includes its television network, film business and digital-streaming services, generated flat quarterly sales of $2.83 billion.

CBS has faced turmoil of late in its executive suite as well as its news division. Its chairman and chief executive, Leslie Moonves, resigned last September after facing allegations that he sexually harassed and assaulted many women during his career became public. Mr. Moonves has denied any nonconsensual sex.

The company is locked in a legal dispute with Mr. Moonves over a $120 million severance package the board decided not to pay him after conducting an investigation into the harassment allegations.

Joseph Ianniello is currently serving as acting CEO and president at CBS.

(END) Dow Jones Newswires

February 14, 2019 17:02 ET (22:02 GMT)

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