Revenues Up, Profits Down at 21st Century Fox

February 6, 2014 World Screen
ADVERTISEMENT

NEW YORK: Second-quarter revenues at 21st Century Fox were up 15 percent to $8.2 billion, but net profit was down by 50 percent to $1.2 billion.

“In the fiscal second quarter, we continued to deliver top-line revenue growth across our businesses, including double-digit increases in affiliate fees and retransmission consent revenues as well as the inclusion of Sky Deutschland results," said Rupert Murdoch, chairman and CEO. "Our quarterly OIBDA results also reflect the planned investments we are making in our core businesses to support long-term growth. We remain confident that these investments, together with our demonstrated ability to consistently grow our revenues, will drive 21st Century Fox’s future profits and cash flow toward our targets and even better position the company to benefit from the increasing global demand for premium content and channels.”

Cable network programming revenues rose 14 percent to $3 billion. Affiliate revenues rose 15 percent in the U.S. and 22 percent internationally. U.S. ad revenues were up 7 percent, while internationally they gained 9 percent. Segment OIBDA was $1.04 billion, 2 percent higher than the year-ago period.

ADVERTISEMENT

Watch GoQuest Media’s Kuma (The Other Wife) in their Exclusive Showcase

Television revenues were $1.6 billion, 6 percent higher than the prior year, but OIBDA fell 11 percent to $218 million as a result of higher expenses from new scripted programming and higher sports costs resulting from two additional World Series games.

At the filmed entertainment segment, revenues gained 7 percent to $2.5 billion, while OIBDA dropped to $337 million. The studio cited difficult prior-year comparisons as well as costs related to the releases of The Secret Life of Walter Mitty and Walking with Dinosaurs.

The direct broadcast satellite television business reported improved revenues of $1.5 billion, thanks largely to the inclusion of Sky Deutschland, but OIBDA fell from $55 million to $30 million. Sky Deutschland ended the period with 3.67 million customers, while SKY Italia had 4.76 million by the end of the quarter.