On first glance, CBS Corporation‘s Q1 2019 financial report suggests the media company rumored to be reuniting with Viacom did quite well. Once one looks at its adjusted net income performance, a whole different picture emerges.
Total revenue jumped to $4.17 billion from $3.76 billion, as the entertainment division saw revenue climb to $3.18 billion from $2.75 billion.
Local media, largely comprised of CBS’s O&O TV stations, saw revenue inch ahead to $457 million, from $415 million.
Revenue in Q1 for the cable networks dipped however, moving to $552 million from $571 million.
Advertising accounted for the revenue gain, moving ahead to $2.04 billion from $1.73 billion.
Adjusted operating income grew to $793 million, from $781 million, as total operating income came to $1.23 billion from $772 million.
Net earnings were $1.58 billion ($4.21 per diluted share), moving from $511 million ($1.32).
But, adjusted net earnings were $515 million ($1.37 per diluted share), slipping from $518 million ($1.34).
Free Cash Flow fell to $411 million, from $687 million.
That didn’t stop CBS from crowing about its “best-ever quarterly revenue and first quarter records in adjusted operating income and adjusted diluted earnings per share.”
“CBS has once again grown across all of our key financial metrics, while continuing to invest in our future as a global multiplatform premium content company,” said Joe Ianniello, President and Acting Chief Executive Officer, CBS Corporation. “We delivered higher profits and achieved double-digit revenue growth, helped in part by Super Bowl LIII and strong increases in affiliate and subscription fee revenues. Given our Company’s strong programming pipeline and our early-mover advantage in direct-to-consumer, we feel very confident about CBS’ leadership position in a media landscape that values must-have content above all else.”