21st Century Fox Posts Quarterly Revenues of $7.56 Billion

21st Century Fox reported quarterly revenues of $7.56 billion, a 5-percent increase from the prior-year quarter, with higher ad revenue in the TV segment thanks to Super Bowl LI.

The company posted quarterly income from continuing operations attributable to 21st Century Fox stockholders of $811 million, compared to the $844 million reported in the year-ago quarter. Quarterly income from continuing operations before income tax expense of $1.25 billion decreased $139 million from the $1.39 billion reported in the prior-year quarter. Quarterly total segment OIBDA of $1.94 billion increased 3 percent from the $1.88 billion reported in the prior-year quarter.

Cable network programming quarterly segment OIBDA increased 5 percent to $1.45 billion and revenue increased 2 percent to $4.02 billion. Higher entertainment programming and marketing costs at FX Networks and National Geographic Channels, higher NASCAR rights costs at FOX Sports 1 and higher NBA rights costs at the regional sports networks were offset by lower sports rights costs at STAR India. Domestic affiliate revenue increased 8 percent, while domestic advertising revenue was flat over the prior-year period. Domestic OIBDA contributions were about equal to the prior-year quarter, as higher contributions from Fox News were offset by lower contributions from FX Networks and National Geographic Channels. International affiliate revenue increased 5 percent, and international advertising revenue decreased 18 percent. Quarterly OIBDA at the international cable channels increased 44 percent from the same period a year ago, primarily reflecting lower sports programming costs at STAR India and higher contributions from Fox Networks Group International.

Television saw quarterly segment OIBDA of $190 million, up a solid 52 percent. This was driven by 30 percent revenue growth, with increased advertising revenue and continued growth of retransmission consent revenues. Quarterly ad revenues grew 39 percent, driven by the broadcast of Super Bowl LI.

Quarterly segment OIBDA from filmed entertainment was $373 million, a $97 million decrease the same period a year-ago. This was due in part to lower film studio contributions as it faced a difficult comparison to last year’s strong worldwide theatrical performance of Deadpool and the home-entertainment performance of The Martian, though it was partially offset by higher TV production contributions from strong SVOD revenues led by The People v. O.J. Simpson: American Crime Story and higher network revenue. Quarterly segment revenues decreased $65 million to $2.26 billion.

Executive Chairmen Rupert and Lachlan Murdoch said: “We delivered a quarter marked by operational momentum and strong domestic affiliate fee growth. We continue to demonstrate our ability to capture opportunities to grow distribution of our domestic portfolio of video brands, whether through established MVPD partners or new digital entrants such as Hulu’s recently launched live television service. We made progress in the quarter against our key strategic priorities, exemplified by our creative successes across screens, from theatrical releases Logan and Hidden Figures to new FX debuts of Legion, Feud and Taboo. Our proposed combination with Sky, which was recently approved unconditionally by the European Commission, will advance another of our strategic priorities, driving innovation for customers. We remain confident the proposed transaction will be approved by the end of the calendar year following a thorough review process.”