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CBS beats revenue estimates on higher entertainment sales

FILE PHOTO: The CBS Television Center is seen in Los Angeles, California, U.S., August 7, 2019. REUTERS/Lucy Nicholson

(Reuters) - CBS Corp CBS.N reported second-quarter revenue above estimates on Thursday, as the TV broadcaster got a boost from higher sales in its entertainment segment.

Revenue from the segment rose about 14% to $2.74 billion, above analysts’ expectation of $2.62 billion, according to IBES data from Refinitiv.

CBS, home to popular shows such as the “The Late Show with Stephen Colbert” and “Big Bang Theory”, has built advertising-supported, subscription video services that air original content.

Sister company Viacom Inc VIAB.O also beat estimates for quarterly revenue and profit on Thursday, as it posted rare growth in domestic advertising revenue after five years of declines.

Reuters also reported on Thursday that CBS and Viacom’s talks to recombine are continuing with a deal expected shortly.

CBS said its net earnings rose to $440 million, or $1.17 per share, in the quarter ended June 30, from $400 million, or $1.05 per share, a year earlier.

Excluding certain items, the company earned $1.16 per share. Analysts were expecting $1.12, according to IBES data from Refinitiv.

Total revenue rose about 10% to $3.81 billion, beating estimates of $3.72 billion.

Reporting by Akanksha Rana in Bengaluru and Kenneth Li in New York; Editing by Shinjini Ganguli