CBS Inc. said Wednesday that its third-quarter profit climbed 16%, reflecting improved broadcasting results and a hefty amount of interest earned on the money it has amassed from asset sales.
The company also said its board had boosted the quarterly dividend by 47%, a move that some shareholders have been pressing for in the wake of the recent sales of major assets such as the magazine and records divisions.
CBS said the dividend boost to $1.10 a share “reconfirms our confidence in CBS’ future prospects and represents a tangible sharing with our shareholders of our financial well-being.” The new dividend, up from 75 cents a share, is payable Dec. 12 to shareholders of record Nov. 23.
But on the New York Stock Exchange, CBS fell 75 cents a share Wednesday to $178.125.
For the three months ended Sept. 30, CBS said it earned $69.9 million, compared to $60.1 million a year earlier.
Third-quarter revenue rose 4% to $568.8 million from $545.5 million a year earlier.
The CBS Broadcasting Group posted an operating profit of $49 million, up 7% from $45.6 million a year earlier.