The company's income from continuing operations more than doubled to $1.84B, thanks to a tax benefit of $1.34B taken from the tax reform legislation. Excluding net income effects, adjusted EPS was $0.42, down from last year's $0.53 but beating expectations.
Cable success came in part from domestic affiliate revenue that rose 12% due to rate increases across all brands; domestic ad revenue fell 3% on lower ratings (and a lower volume of original series). Meanwhile, international affiliate revenue rose 13% with rate and subscriber growth both at FNG International and STAR.
Broadcast TV meanwhile not only saw lower ad revenues and declining NFL/baseball ratings but was hit by higher sports programming costs, which included a higher volume of college/NFL football games in the quarter.
Profitability at the film studio dropped amid higher releasing costs that multiplied with a bigger slate and offset revenues.
Revenue by segment: Cable Network Programming, $4.41B (up 11%); Television, $1.81B (down 5.8%); Filmed Entertainment, $2.25B (down 1%).
OIBDA by segment: Cable Network Programming, $1.365B (up 2.6%); Television, $56M (down 85%); Filmed Entertainment, $131M (down 66%).
Now read: Manulife Financial EPS in-line »
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