Cable Helps Lift 21st Century Fox Quarterly Results

NEW YORK: Stronger ad revenues at Fox News contributed to a solid quarterly financial performance for 21st Century Fox.

For the quarter ended September 30, revenues were up 7 percent to $6.51 billion, as net income increased 22 percent to $821 million.

Cable network programming quarterly segment OIBDA increased 6 percent to $1.38 billion, driven by a 10 percent revenue increase on higher affiliate and advertising revenues, partially offset by a 12 percent increase in expenses. Domestic affiliate revenue increased 8 percent, with continued contractual rate increases led by the RSNs, FX Networks, FS1 and Fox News Channel. Domestic ad revenue grew 6 percent, on higher ratings and pricing at Fox News. Domestic OIBDA contributions increased 9 percent over the prior year quarter, with higher contributions from FS1 and Fox News. International affiliate revenue increased 8 percent, led by strong local currency growth of 16 percent, with double-digit growth reported at both Fox Networks Group International and STAR India—partially offset by negative currency impacts from the strengthened U.S. dollar.

Television delivered quarterly segment OIBDA of $191 million, down 3 percent. Quarterly segment revenues were 1 percent lower than the prior year quarter, as lower advertising revenues—reflecting a market shift in advertising spending towards the Rio Olympics—and the absence of the prior-year broadcasts of the Emmy Awards and the FIFA Women’s World Cup final were offset by higher retransmission consent revenues, higher local political advertising spending at the television stations and higher content revenues at FOX.

Filmed entertainment saw segment OIBDA of $311 million, more than double the same period a year ago. Contributing to the success was the home entertainment performance of Deadpool and higher contributions from the television production business, led by the SVOD licensing of Homeland to Hulu. Quarterly segment revenues increased by $122 million to $1.91 billion, notably from higher TV production revenue.

Executive Chairmen Rupert and Lachlan Murdoch said: “We delivered a strong quarter, growing our earnings by double digits on solid revenue gains. Whether it was Fox News rating number one in basic cable, the 27 Primetime Emmy Awards between FX Networks and FOX Broadcasting, producing three of the top five scripted shows on television, or our robust international growth, we demonstrated strong operational momentum across our global businesses.”