(Reuters) - TV broadcaster and media company CBS Corp (NYSE:CBS) fell short of analysts' estimates for first-quarter revenue on Thursday, hit by a drop in content licensing and distribution sales.
Revenue from its content licensing and distribution segment fell 3.2 percent to $963 million in the quarter, sending its shares down more than 1 percent to $49.70 in after-market trading.
CBS, home to popular shows such as the "The Late Show with Stephen Colbert," and "The Big Bang Theory", last month suspended the search for a permanent CEO and extended the role of its interim CEO Joseph Ianniello, sparking speculation about the company considering for the third time a tie-up with sister company Viacom Inc.
While media majors Walt Disney (NYSE:DIS) Co and AT&T Inc (NYSE:T) are tapping into their extensive film and TV libraries to launch streaming rivals to Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN).com's Prime video, smaller players CBS and Viacom appear to be harmonizing their strategy, focusing on providing original content to other distributors.
CBS said total revenue rose nearly 11 percent to $4.17 billion, but came in below estimates of $4.30 billion, according to IBES data from Refinitiv.
Net earnings rose to $1.58 billion, or $4.21 per share, in the three months ended March 31, from $511 million, or $1.32 per share, a year earlier.
The year-earlier quarter included a tax benefit of $768 million, the company said.
Excluding certain items, the company earned $1.37 per share, just above analysts' expectation of $1.36.
