In its fourth quarter earnings call, CBS Corporation reported revenue of $6.4 billion for the period, down from $8.3 billion in the same period a year earlier.
The company also posted $5.2 billion in net income.CBS Corp. Chief Financial Officer John C. Elvira said that during the third quarter, the company experienced “some challenges in the media environment and the competitive landscape,” adding that the company was “encouraged by the growth of our digital and social businesses.”
The company also said that it will spend $200 million to increase advertising revenue from its traditional advertising and digital channels to $200 billion by 2020.
CBS will also make investments in new businesses, including the production of a new movie that will be made for the network.
The company said that its digital advertising revenue was $2.6 billion in its third quarter of fiscal 2018, up from $2 billion a year ago.
Its digital advertising is expected to grow to $3.3 to $4 billion in 2021.CBS said that digital advertising revenues are expected to remain flat in the fourth quarter.
In fiscal 2018 and 2019, digital advertising accounted for about half of the company’s total advertising revenue.
In addition, the network said that there were “significant declines” in the number of subscribers for its cable-TV services, and that it expects to lose approximately 1 million subscribers by the end of the third fiscal year, down 20 percent from the third year of fiscal 2017.
CBS also said its subscription base will decline from more than 4.2 million in the third quarters of fiscal 2021 to less than 4 million in 2021, down 25 percent from fiscal 2021.