Earnings: Fox cable, films up as broadcast struggles
DetailsMichelle Clancy | 06 February 2015
Twenty-first Century Fox posted quarterly revenue that fell 1% year-over-year to $8.1 billion for its fiscal second quarter but has, however, still beaten Wall Street's expectations of $7.4 billion.
Its second-quarter profits meanwhile quintupled to $6.3 billion, from $1.2 billion during the same period a year earlier. That skyrocketing net income is attributable to the $5 billion sale last July of its stakes in Sky Italia and Sky Deutschland to British satcaster BSkyB, a sister company.
Outside of the sale proceeds, the company's cable networks and film studios all posted gains in the quarter, but revenue fell in the broadcast television segment. Cable increased 14% to $3.4 billion, while movie revenue came in at $2.8 billion, up 11% year-over-year.
For TV, sales fell $7 million to $1.6 billion. Lower ratings at FOX led to a 3% decline in advertising revenue, and the network faced higher costs for its broadcast rights deal with the NFL.
"We delivered solid quarterly results despite continuing currency headwinds and ratings challenges at the FOX broadcast network," Fox chief Rupert Murdoch said.