Tags: Rupert Murdoch | Fox | cable | television

Twenty-First Century Fox Revenue Misses as Cable TV Drags

Twenty-First Century Fox Revenue Misses as Cable TV Drags
(Twenty-First Century Fox)

Wednesday, 10 May 2017 06:03 PM

Twenty-First Century Fox Inc., the television and film company controlled by Rupert Murdoch, reported quarterly revenue that missed analysts' estimates, weighed down by flat U.S. ad revenue in its cable business and fewer box-office hits.

Shares of the company, which is in midst of a $14.5 billion bid to take control of UK-based pay-TV group Sky Plc, fell nearly 4 percent in extended trading on Wednesday.

"We remain confident the proposed transaction will be approved by the end of the calendar year following a thorough review process," Executive Chairmen Rupert and Lachlan Murdoch said in a statement.

Sexual harassment claims and lawsuits at Fox News, which have led to the departures of its former chair Roger Ailes, network co-president Bill Shine and star anchor Bill O'Reilly, have weighed on the Sky bid.

The British government has asked the U.K. media regulator Ofcom to assess whether Twenty First Century Fox's bid, to buy the near 61 percent of London-listed Sky it does not already own, is in the public interest.

Revenue at Fox's cable division, which houses the Fox News, FX and Fox Sports networks, rose 2.1 percent to $4.02 billion, accounting for more than half of total revenue.

Analysts on average had expected revenue of $4.17 billion at the business, according to financial data and analytics firm FactSet StreetAccount.

Fox said domestic advertising revenue in its cable business was flat over the year-earlier period, as the impact of higher ratings at Fox News was offset by lower revenues at the National Geographic Partners businesses.

Fox said revenue in its film division fell nearly 3 percent to $2.26 billion in the third quarter ended March 31.

Hugh Jackman-starrer "Logan," part of the company's "X-Men" franchise, released during the quarter and grossed about $606 million worldwide, compared with the $783.1 million that the 2016 hit "Deadpool" made, according to Box Office Mojo, a website that tracks theater ticket sales.

Net income attributable to shareholders fell to $799 million, or 43 cents per share, from $841 million, or 44 cents per share, a year earlier.

Excluding items, Fox earned 54 cents per share. Analysts on average had expected a profit of 48 cents per share.

Total revenue rose 4.6 percent to $7.56 billion but missed analysts' average estimate of $7.63 billion, according to Thomson Reuters I/B/E/S.

© 2019 Thomson/Reuters. All rights reserved.

   
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Twenty-First Century Fox Inc., the television and film company controlled by Rupert Murdoch, reported quarterly revenue that missed analysts' estimates, weighed down by flat U.S. ad revenue in its cable business.
Rupert Murdoch, Fox, cable, television
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2017-03-10
Wednesday, 10 May 2017 06:03 PM
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