Tags: Fox | Profit | Cable | Programming

Fox Profit Declines on Cable Programming Costs

Tuesday, 05 Nov 2013 05:23 PM

Rupert Murdoch’s 21st Century Fox Inc. film and television company reported fiscal first-quarter profit that missed analysts’ estimates after a tough quarter for the film division and investments in its cable networks.

Profit from continuing operations fell to $768 million, or 33 cents a share, from $2.23 billion, or 95 cents, a year earlier, New York-based Fox said Tuesday in a statement. Analysts expected 35 cents, the average of 23 estimates compiled by Bloomberg. Operating income rose 2 percent to $1.62 billion.

Murdoch is converting cable channels with smaller audiences into networks with a potentially bigger draw. In August, the racing channel Speed become Fox Sports 1 and Fox Soccer converted to FXX, networks that will take a year or more to increase revenue and to recoup higher programming costs. Fox is also spending to develop programs for its Fox broadcast network, where viewership tumbled in season ended in May.

“The investment we are making, including the launch of FXX and Fox Sports 1, will drive future sustained growth toward our stated 2016 target,” Murdoch said in the statement.

Fox, owner of the Twentieth Century Fox film studio and satellite pay-TV systems in Germany and Italy, fell 2.3 percent to $33.30 in extended trading. The stock lost 0.2 percent to $34.09 at the close in New York and has increased 51 percent this year compared with a 24 percent gain for the Standard & Poor’s 500 Index.

Sales increased 18 percent to $7.06 billion, beating the $6.82 billion average of 20 analysts’ estimates.

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Rupert Murdoch's 21st Century Fox film and television company reported fiscal first-quarter profit that missed analysts' estimates after a tough quarter for the film division and investments in its cable networks.
Fox,Profit,Cable,Programming
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2013-23-05
Tuesday, 05 Nov 2013 05:23 PM
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