Revenue, Profit Gains at 21st Century Fox

NEW YORK: In its first set of financials after being split from News Corp.’s publishing operations, 21st Century Fox reported full-year revenues of $27.7 billion, reflecting a 10-percent gain, with a profit of $6.82 billion.

In Q4, meanwhile, revenues were up 16 percent to $7.21 billion, with net income of $977 million.

Announcing the results, Rupert Murdoch, chairman and CEO of 21st Century Fox, noted: “With the separation complete 21st Century Fox launches as a distinct public company with its own identity, its own strategy and its own growth and capital plan. Although a significant amount of time and effort was spent over the past twelve months on this separation, we never lost focus on the operation of our businesses. The company not only delivered strong earnings and revenue growth led by our channels businesses, we also positioned ourselves for future success with strategic investments in our global channels businesses, including the acquisitions of Sports Time Ohio and an ownership stake in the YES Network, as well as the announcement of the impending launches of Fox Sports 1 and FXX. As a result of these advances, 21st Century Fox is poised to deliver continued innovation for our customers as well as sustained growth and long-term value for our stockholders.”

The cable networks programming division was a strong performer for the company, with full-year revenues of $10.9 billion. Domestic gains were seen in particular at the regional sports networks, Fox News and FX Networks. FOX International Channels and the STAR entertainment channels were also key contributors to OIBDA, which rose 18 percent in the year to $4.18 billion. Affiliate revenues rose 12 percent in the U.S. and 35 percent internationally. Similarly, ad revenues rose 6 percent in the U.S. and 20 percent internationally.

Television OIBDA was $855 million, an 8-percent boost in the year, thanks to higher retrans fees along with lower programming costs at FOX, offsetting a decline in ad revenues.

Filmed entertainment OIBDA was flat at $1.31 billion, while DTH IOBDA (Sky Italia and Sky Deutschland) fell to $397 million.