Tags: Fox | Profit | Ads | Cable

Fox Profit Beats Estimates on Super Bowl Ads, Cable Growth

Wednesday, 07 May 2014 06:45 PM

Rupert Murdoch-controlled television and film company 21st Century Fox Inc. reported a better-than-expected quarterly profit due to a 12 percent rise in revenue, helped by strong Super Bowl advertising and cable network growth.

Shares in Fox, spun off from News Corp last June, rose 2.9 percent to $32.30 in extended trading on Wednesday, after the news came out.

Advertising revenue in Fox's television business rose 30 percent, helped by advertising during Super Bowl XLVIII and the National Football League playoffs.

The Super Bowl is rotated yearly across different broadcast networks.

"They overdelivered on television which Disney just missed out, so that was a good fact," Needham & Co analyst Laura Martin told Reuters.

Fox reported a 27 percent rise in TV revenue to $1.59 billion, while Disney on Tuesday blamed a decrease in primetime advertising for flat broadcast revenue of $1.50 billion.

Revenue at Fox's cable networks, its largest business, grew 11.5 percent to $3.15 billion, driven mainly by a 12 percent rise in domestic advertising revenue.

Fox's stable of cable networks includes the Fox News Channel, Fox Sports, FX Networks, National Geographic channels and a new channel FXX aimed at young adults.

Expenses rose 12 percent in the business as the company invests heavily on sports channels, going after Walt Disney Co's ESPN with its Fox Sports 1 channel launched in August.

The company said its quarterly operating income before depreciation and amortization grew 14 percent to $1.79 billion on higher affiliate fees and advertising revenue.

Net income rose to $1.05 billion, or 47 cents per share, for the third quarter ended March 31.

Net income in the year-ago quarter was $2.89 billion, or $1.22 per share. The period included a $2.1 billion accounting gain as the company increased its stake in British Sky Broadcasting.

Excluding items, the company earned 47 cents per share, handily beating the average Wall Street estimate of 35 cents, according to Thomson Reuters I/B/E/S.

Revenue rose to $8.22 billion from $7.35 billion.

© 2017 Thomson/Reuters. All rights reserved.

 
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Rupert Murdoch-controlled television and film company 21st Century Fox Inc. reported a better-than-expected quarterly profit due to a 12 percent rise in revenue, helped by strong Super Bowl advertising and cable network growth.
Fox, Profit, Ads, Cable
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2014-45-07
Wednesday, 07 May 2014 06:45 PM
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