Cable Nets Drive 21st Century Fox Gains

Strong gains at its cable networks business helped drive 21st Century Fox’s revenues to $7 billion for Q1, an increase of 8 percent from the same period last year.

“The company’s double-digit gains in affiliate revenues demonstrate our strength in the dynamic global market for distinctive video brands and content, across both established distributors and new entrants,” executive chairmen Rupert and Lachlan Murdoch said. “We delivered top-line growth at all of our businesses, backed by stand-out storytelling, sports and news, as well as a product focus that will drive greater consumption and compelling opportunities for financial returns on our content investment. Our solid first quarter performance puts us on track to achieve our overall financial and operational objectives for this fiscal year.”

Cable network revenues rose 9 percent to $4.2 billion, with affiliate and ad revenues up 10 percent, partially offset by an 11-percent rise in expenses, largely due to sports rights costs. Affiliate revenues in the U.S. were up 11 percent and ad revenues up 3 percent. International affiliate income also rose by 11 percent, while ad revenues gained 11 percent, largely driven by STAR India.

Television revenues were up by 3 percent to $1.1 billion, but segment OIBDA fell by 36 percent, again mostly due to the costs of sports rights.

Filmed-entertainment revenues were up slightly to $2 billion, primarily reflecting higher syndication revenue from television productions, partially offset by lower film studio pay and free-TV licensing revenues. OIBDA fell to $256 million.

Total net income attributable to 21st Century Fox shareholders rose to $855 million.