Fox Revenue Falls 8.4%
February 08 2016 - 5:00PM
Dow Jones News
21st Century Fox Inc. said its revenue fell 8.4% in its latest
quarter, as stronger cable and television advertising revenue was
offset by lower revenue at its film business and the effect of
asset sales a year earlier.
For the period ended Dec. 31, revenue decreased to $7.38 billion
from $8.06 billion a year earlier. The year-earlier period included
$631 million of revenue from Sky Italia and Sky Deutschland, which
were sold in November 2014. Excluding revenue from those direct
broadcast satellite businesses, revenue fell 1%. Analysts polled by
Thomson Reuters had expected revenue of $7.51 billion.
Executive Chairmen Rupert and Lachlan Murdoch said the company's
cable business continued to drive growth in the latest quarter,
delivering sustained increases in domestic affiliate fees and
growth in advertising revenue.
Cable network division revenue increased 9.4% to $3.7 billion.
Domestic affiliate revenue improved by 10% and domestic advertising
revenue grew 3%.
Television segment revenue increased 5.7% to $1.72 billion amid
strong retransmission consent revenue growth and a 4% increase in
advertising revenue.
But film studio revenue fell 14% to $2.36 billion, mostly on
lower world-wide home entertainment revenues reflecting difficult
comparisons to last year's strong performance of "X-Men: Days of
Futures Past" and "Dawn of the Planet of the Apes" with this year's
home entertainment performance of "Spy" along with the absence of
Shine Group.
Over all, 21st Century Fox reported a profit of $672 million, or
34 cents a share, down from $6.21 billion, or $2.88 a share, a year
earlier. The year-earlier profit was boosted by certain one-time
items, and excluding those, per-share earnings from continuing
operations fell to 44 cents from 53 cents. Analysts expected
per-share profit of 44 cents.
The Wall Street Journal reported last week that the media
company was seeking to trim annual expenses by $250 million— mostly
through voluntary buyouts, for the current fiscal year that ends in
June. If the television group and movie studio doesn't meet its
targets through voluntary buyouts, job cuts would be possible, the
Journal reported. The company's earnings report didn't include any
further details about its cost-cutting efforts.
The cost-cutting plan comes amid sweeping changes in the media
landscape in which viewers have far more options beyond the small
screen and the movie theater, changing the way audiences pay for
and consume entertainment and news.
Last summer, Fox completed a transition that put media mogul Mr.
Murdoch's sons at the helm of the media conglomerate, which
includes the Fox broadcast network, cable channels in the U.S. and
around the world, and one of the largest film and television
studios. In September, Fox struck a deal to add National Geographic
magazine and other assets to its media properties.
In July, Mr. Murdoch officially stepped down as chief executive
of 21st Century Fox Inc., handing the title to his son James. The
elder Mr. Murdoch stayed on as executive chairman at Fox. His older
son, Lachlan Murdoch, was named executive co-chairman.
Mr. Murdoch split up his media empire in mid-2013, with the
entertainment assets going to 21st Century Fox and the publishing
assets, including The Wall Street Journal, going to News Corp.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
February 08, 2016 16:45 ET (21:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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