Investing.com -- Shares in CBS inched up in after-hours trading in spite of a near 20% drop in quarterly earnings released on Thursday.
CBS Corp., one of the nation's largest mass media conglomerates, saw its earnings dip by 19% for the first quarter of the year in part due to lower revenue after televising one fewer NFL playoff game this winter in comparison with the previous season. During the 2014 AFC Championship Game between the New England Patriots and Indianapolis Colts, a 30-second commercial cost advertisers a reported $1.78 million, according to Kantar Media. CBS' entertainment division, which encompasses CBS Television, reported a 1.8% decline in revenue to $2.26 billion.
The New York-based company still posted earnings per share of 0.78, ahead of analysts' forecasts of a 0.75 EPS. The diluted EPS of 0.78 was an all-time quarterly record for the corporation.
"CBS turned in another quarter of record EPS, and our investment in world-class content will lay the foundation to drive future profits," CBS Corporation (NYSE:CBS) CEO Leslie Moonves said in a statement. "We are set to close the season with four of the top five new scripted series, all of which we have ownership in and can monetize in a growing number of ways. We will also win the season as the most-watched network in America, with a solid performance across all demographics at a time when others are facing ratings erosion."
While CBS Corporation's affiliate fees rose by 11% to 628 million for the quarter, its advertising revenue fell 4.8% to 1.78 billion. Moonves also announced on a Thursday conference call that Showtime will launch an over-the-top service in the coming months to compete with HBO's streaming service – HBO Now.
"There are tremendous opportunities afforded to companies that create premium programming, and Les and his team are capitalizing on all of them," said Sumner Redstone, Executive Chairman, CBS Corporation. "I am confident they have the strategy to keep CBS at the top of its game for many years to come."
Shares in CBS Corp. gained 0.63 or 1.03% to 61.85 in after-hours trading.