21st Century Fox Profit Falls


NEW YORK: In the first quarter, 21st Century Fox earned $1.26 billion, compared with a profit of $2.23 billion a year prior, when one-time gains from the sale of its stake in pay-TV software company NDS Group lifted results.

The fiscal earnings were also hurt by start-up costs for two cable channels, including the new sports network FOX Sports 1. The company also started the FX spin-off channel FXX. Expenses were up 22 percent amid the launch of new cable channels.

Revenues totaled $7.06 billion, up from the $6 billion in the same quarter a year earlier, a gain of 17.6 percent. There was a 2-percent increase in OIBDA to $1.62 billion.

Cable network programming reported quarterly segment OIBDA of $991 million. Revenue grew 12 percent. Ad revenue at the domestic cable channels was up 6 percent, while at the international cable segment ad revenue increased 21 percent.

Television reported quarterly segment OIBDA of $231 million, a 30-percent gain. Filmed entertainment was down slightly in quarterly OIBDA at $328 million. Direct broadcast satellite television generated quarterly segment OIBDA of $190 million.

Rupert Murdoch, the chairman and CEO, said: “In our first quarter as 21st Century Fox, we delivered strong revenue increases across all of our businesses as well as growth in OIBDA even as we made significant investment in our channels business, and faced a difficult film comparison and currency headwinds. The investment we are making, including the launch of FXX and Fox Sports 1, will drive future sustained growth toward our stated 2016 target of $9 billion of OIBDA and beyond.”