Non advertising revs drive solid Q1 beat
CBS blew past expectations with Q1 revenues up 13% (cons. +9%) and adjusted EPS up 27% to $1.34. 2018 guidance now looks conservative. Outperformance was led by content licencing where revenues climbed 18% as the company's investment in quality production and its ability to sell around the world to emerging players continues to pay off. Additionally, affiliate and subscription fees rose an impressive 16%, led by both strong DTC volume and pricing growth. A Viacom merger is looking incrementally unlikely and we remain Overweight on the basis an agreement is not reached. Our 12m PT requires an 11.5x FY19 multiple which seems very reasonable in the absence of this pressure.CBS is a mass media company, which operates the following segments: Entertainment, which is consists of the CBS Television Network, CBS Television Studios, CBS Global Distribution Group, Network 10, CBS Interactive, CBS Sports Network, and CBS Films as well as the company's digital streaming services CBS All Access and CBSN; Cable Networks, which consists of Showtime Networks and its digital subscription streaming offering, and Smithsonian Networks; Publishing, which consists of Simon & Schuster's consumer book publishing business with imprints such as Simon & Schuster, Pocket Books, Scribner and Atria Books; and Local Media, which consists of CBS Television Stations and CBS Local Digital Media.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.