Fox's Revenue Drops More Than Expected
05 November 2015 - 12:40AM
Dow Jones News
21st Century Fox Inc. on Wednesday reported weaker-than-expected
revenue for its September quarter, hurt by the timing of key film
releases and a weak showing by "The Fantastic Four."
Shares fell 2.6% in premarket trading.
Fox said revenue at its film studio unit tumbled 28% to $1.79
billion, due to the timing of releases and lower syndication
revenue due to the sale of "How I Met Your Mother." The prior-year
period included the "Dawn of the Planet of the Apes" theatrical
release.
That offset 7.2% revenue growth at its cable network division,
which is benefiting from higher affiliate fees, increased
advertising revenue and lower expenses.
Revenue at its television segment was essentially flat at $1.05
billion, hurt by a 5% slide in advertising revenue due to one fewer
week of National Football League broadcast in the current quarter
and lower political revenue at TV stations.
Lower general entertainment ratings at the FOX Broadcast Network
also weighed on revenue.
In all, the company posted a profit of $675 million, or 34 cents
a share, down from $1.04 billion, or 47 cents a share, a year
earlier. Excluding special items, per-share earnings were 38 cents,
while analysts had expected 37 cents a share.
Total revenue fell to $6.08 billion from $7.89 billion, missing
the $6.42 billion analysts had forecast.
Fox recently completed a transition that put media mogul Rupert
Murdoch's children at the helm of the sprawling 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, who is 84 years old, stayed on as executive
chairman at Fox. His older son, Lachlan Murdoch was named executive
co-chairman.
Mr. Murdoch split up his media empire two years ago, with the
entertainment assets going to 21st Century Fox and the publishing
assets, including The Wall Street Journal, going to News Corp.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 04, 2015 08:25 ET (13:25 GMT)
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