Despite a strong performance from its cable network group, 21st Century Fox reported lower profits in its fiscal first quarter, with its movie business down and broadcast continuing to struggle.
Net income fell to $675 million, or 34 cents a share, in the quarter ended Sept. 30, from $1.037 billion, or 47 cents a share, in the year-ago period, which included asset sales by its BSkyB unit.
Revenue was down 6% to $6.08 billion because of lower film revenue, foreign exchange rates and the absence of revenue from Shine, which was spun off, the company said.
“Our cable networks business generated strong growth in the first fiscal quarter, delivering double-digit earnings gains both domestically and internationally on sustained increases in overall affiliate fees, higher advertising revenues and lower expenses,” executive chairman Rupert Murdoch said.
Operating income for 21st Century Fox’s cable network programming segment was up 26% to $1.31 billion. Revenue was up 7% on affiliate growth and higher ad revenue as expenses declined. Domestic operating income rose 19%, driven by FS1, FX Networks and Fox News Channel. Domestic affiliate revenue rose 11% because of growth at FS1. Domestic advertising revenue grew 4%, thanks to the sports channels and FNC, the company said.
Read more at broadcastingcable.com.
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