Super Bowl, Cable Networks Drive 21st Century Fox Results

NEW YORK: The broadcast of Super Bowl XLVIII on FOX and strong affiliate revenue gains globally at its cable networks were drivers of 21st Century Fox's third-quarter financials, with total revenues up 12 percent to $8.22 billion.

Net profit, however, did fall, from $2.53 billion in the year-ago period to $1.07 billion.

“We delivered strong results in the fiscal third quarter with double-digit revenue and earnings growth led by sustained gains in affiliate fees at our cable networks," said Rupert Murdoch, the company's chairman and CEO. "The sizeable audiences of our live television events, led by the most watched Super Bowl in history, underscore the value of our investments in live sports programming, both in the U.S. and internationally. This quarter’s continued solid operational and financial performance demonstrates the global leadership of our businesses and the long-term value we are creating for our shareholders.”

Cable network revenues were up 11 percent to $3.15 billion, driven by affiliate revenue gains that offset a 12-percent increase in expenses, largely related to the launch of the new networks Fox Sports 1, STAR Sports and FXX. Ad revenues were up 8 percent in the U.S. and 4 percent internationally. Segment operating income rose 10 percent to $1.2 billion.

The television division saw revenues rise 27 percent to $1.6 billion, with operating income up 32 percent to $288 million. The Super Bowl and NFL playoffs were key drivers in terms of ad rates and ratings, but general entertainment ratings were down, led by American Idol.

Filmed entertainment revenues were down slightly, to $2.3 billion, but operating income was $354 million, reflecting a 6-percent gain, with higher contributions from the television production businesses, namely increased SVOD revenues from the sale of series like 24 and The Americans to Amazon, and the syndication of Modern Family.

Operating income from the company's DTH platforms dropped from $91 million to $58 million, largely due to increased sports programming costs at Sky Deutschland and Sky Italia. Revenues, however, were up to $1.5 billion.