Tuesday, June 30th32.3°C
26808

Fox 3rd-quarter earnings top Wall Street expectations

LOS ANGELES, Calif. - Twenty-First Century Fox Inc. on Wednesday reported third-quarter earnings that topped analyst expectations as revenue grew thanks to higher advertising sales and a popular Super Bowl.

But its profits were tempered by higher expenses due to the launch of new channels including Fox Sports 1.

The media conglomerate controlled by Rupert Murdoch maintained its forecast that its annual operating profits through June will expand in the mid-to-high single digit percentages from a year ago.

It also stuck to a target of reaching $9 billion in operating profits in the year through June 2016 — 44 per cent higher than in the year to June 2013.

The adherence to the earnings target was a relief to investors after suffering a downgrade from the company three months ago based on weak performance at its movie studio and poor ratings for broadcast TV shows like "The X Factor" and "American Idol."

Barton Crockett, an analyst with FBR Capital Markets, said the steadfast outlook came despite negative foreign currency impacts and unexpected audience weakness.

"They're getting a big stack of issues they didn't plan for and just managing right through them," he said. "What they have is just such an ability to get paid more money by cable and satellite TV companies."

On a conference call with analysts, Chief Operating Officer Chase Carey acknowledged that "Idol" did not attract the following the company anticipated on the Fox network. But he promised that a "unique and edgy" lineup of new and returning shows would be unveiled at a presentation for advertisers on Monday.

Fox has "a proven history of surprising audiences with shows that redefine the TV viewing experience," Carey said. "None of that has changed."

The company said net income in the quarter through March fell 63 per cent to $1.05 billion, or 47 cents per share, from $2.85 billion, or $1.22 per share, a year earlier.

Last year's results were skewed by a special gain of $2.1 billion from raising its stake in German satellite TV operator Sky Deutschland.

After adjustments that offset each other, the resulting 47 cents per share of earnings beat the 35 cents expected by analysts polled by FactSet.

Revenue rose 12 per cent to $8.22 billion from $7.35 billion a year ago. Analysts were expecting revenue of $7.98 billion.

Pay TV revenue grew 11 per cent to $3.15 billion as it earned more in fees from distributors for regional sports networks and channels like FX Network and Fox News. Advertising revenue rose. Operating earnings also went up despite the rising expenses for channel launches.

Broadcast TV revenue rose 27 per cent to $1.59 billion, thanks in part to the advertising bump from the Seahawks' defeat of the Broncos in Super Bowl XLVIII, the most watched TV show in U.S. history.

That, plus strong viewership of the NFL playoffs, more than offset a decline in audience ratings for the talent show, "American Idol." The ratings decline at "X Factor" led to that show's cancellation in February.

Movie studio revenue declined 3 per cent to $2.28 billion though profits rose thanks in part to the sale of TV shows such as "24" and "The Americans" to Amazon's streaming service. Revenue from its satellite TV business rose 16 per cent to $1.53 billion.

Shares in New York-based Fox rose $1.08, or 3.4 per cent, to $33.20 in after-hours trading following the release of results. Earlier, shares closed down 29 cents at $32.12 in the regular session.

The Canadian Press


Read more Business News

25528


Recent Trending




Today's Market
S&P TSX14553.33+63.18
S&P CDNX671.49+4.40
DJIA17619.51+23.16
Nasdaq4986.87+28.40
S&P 5002063.11+5.47
CDN Dollar0.8004-0.0003
Gold1171.10-7.40
Oil59.57-0.53
Lumber288.40-3.80
Natural Gas2.83-0.00

 
Okanagan Companies
Pacific Safety0.16-0.01
Knighthawk0.010.00
QHR Technologies Inc1.52-0.01
Cantex0.04-0.01
Anavex Life Sciences0.45+0.03
Metalex Ventures0.075+0.010
Russel Metals22.73+0.05
Copper Mountain Mining1.16-0.01
Colorado Resources0.08-0.02
ReliaBrand Inc0.006-0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.185+0.015
Decisive Dividend Corporation2.50+0.42

 



25985

FEATURED Property
23134262091 Diamond Road
4 bedrooms 2 baths
$469,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...


Renovation dreaming

Photo: Thinkstock.comDreaming of a new fire pit? A deep soaker tub?With summer on its way, lots of families have renovations on their minds. Did you know that home buyers can apply for a Purchase Plus...

_





26870


Member of BC Press Council


25770