Joseph O'Halloran | 07-08-2013
In its first financial results as a new entity, 21st Century Fox has reported operating profits of $6.26 billion, a 9% year on year increase, on the back of revenues of $27.68 billion.
Nearly three-quarters of this increase for the year ended 30 June 2013 reflects growth at the Cable Network Programming, Filmed Entertainment and Television segments partially offset by decreases at the Direct Broadcast Satellite Television (DBS) segment.
The balance of the growth also primarily relates to the inclusion of Sky Deutschland revenues from beginning in January 2013.It also includes contributions from ESPN Star Sports (now operating as Fox and Star Sports Asia), as well as the sale of the ownership stake in NDS and a $306 million gain from its participation in the share repurchase program of BSkyB in whom it owns a 39% share.
For the television division, full year segment OIBDA of $855 million increased $64 million, or 8%, versus the prior year. The company revealed that the increase was driven by a doubling of retransmission consent revenues and lower programming expenses at the Fox Broadcast Company. However the company also showed a 7% decline in national advertising revenues which reflected lower primetime ratings driven by declines atX-FactorandAmerican Idol, which recently finished its twelfth season.
For the fourth quarter total segment operating income was $1.49 billion, up 14%, on revenues of $7.21 billion, a 16% increase year on year. As with the yearly results, 21st Century Fox attributed approximately half of this increase to growth at the Cable Network Programming and Filmed Entertainment segments with the balance primarily relating to this year’s inclusion of Sky Deutschland revenues. The 14% OIBDA growth was led by 25% growth at the Cable Network Programming segment which was partially offset by lower contributions at the Filmed Entertainment, Television and DBS segments.
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said: “With the Separation complete 21st Century Fox launches as a distinct public company with its own identity, its own strategy and its own growth and capital plan. Although a significant amount of time and effort was spent over the past twelve months on this Separation, we never lost focus on the operation of our businesses.
"The Company not only delivered strong earnings and revenue growth led by our channels businesses, we also positioned ourselves for future success with strategic investments in our global channels businesses, including the acquisitions of Sports Time Ohio and an ownership stake in the YES Network, as well as the announcement of the impending launches of Fox Sports 1 and FXX.”