Earnings Up at 21st Century Fox

NEW YORK: Net income at 21st Century Fox rose to $567 million in the fourth quarter, with higher broadcast and cable advertising revenues contributing to the gains.

Quarterly revenue was up 7 percent year-on-year to $6.65 billion, with higher affiliate and advertising revenues generated from the company’s cable network programming and television segments, and higher content revenues generated at the filmed-entertainment segment. The adverse impact of foreign exchange rates impacted quarterly revenue growth by $116 million. Quarterly total segment OIBDA of $1.45 billion was down from the $1.54 billion reported in the prior-year quarter, due to lower contributions from the filmed-entertainment segment partially offset by higher contributions at the television segment.

Cable network programming quarterly segment OIBDA contribution of $1.21 billion was stable year-on-year, as a 10-percent revenue increase on higher affiliate, advertising and content revenues was offset by a 15-percent increase in expenses. The cable network programming segment Q4 results also included revenue of $71 million and costs of $98 million related to the inclusion of results from the recently acquired National Geographic non-channels businesses. Domestic affiliate revenue increased 6 percent and domestic ad revenue by 13 percent. International affiliate revenue increased 9 percent and ad revenue decreased 6 percent.

Television generated quarterly segment OIBDA of $144 million, a 27-percent increase from the prior-year period. Quarterly segment revenues were 5-percent higher in the year-on-year comparison, as higher retransmission consent revenues and a 9 percent increase in FOX Broadcast Network entertainment advertising revenues were partially offset by lower sports advertising revenues (in the absence of the FIFA Women’s World Cup).

Filmed entertainment delivered quarterly segment OIBDA of $164 million, down from the $269 million reported in the same period a year-ago. The OIBDA decrease was related to higher theatrical releasing costs incurred in the current quarter to support the summer theatrical film release slate which included X-Men: Apocalypse, Independence Day: Resurgence, Mike and Dave Need Wedding Dates and Ice Age: Collision Course, partially offset by higher profits from animated television series, led by Family Guy and American Dad, and higher profits from Homeland. Quarterly segment revenues increased to $2.04 billion, with higher TV production revenues and higher theatrical revenues partially offset by negative foreign exchange rate fluctuations.

Executive Chairmen Rupert and Lachlan Murdoch said: “We delivered full-year revenue and earnings growth on the strength of gains in affiliate and advertising revenues despite considerable foreign exchange headwinds and difficult film comparisons. The value created by our multiyear investment in our content production and our global video brands is clear. Our brands are an indispensable part of any consumer offering, whether from a traditional distributor or a new entrant like Hulu’s upcoming live and on-demand service, which will benefit greatly from Time Warner’s investment and participation. The work we did this year bolsters our strong position in a world of growing demand and access to the premium content that consistently sets us apart.”