×
You will be redirected back to your article in seconds

21st Century Fox Film Division Helps Revenue Rise 17% in Q4

Film and cable programming gains powered 21st Century Fox to strong earnings and revenue gains in the fiscal fourth quarter, despite a big decline at the Fox network from the collapse of “American Idol.”

Fox reported revenue of $8.42 billion, a 17% gain over the year-ago quarter powered by stronger contributions from the film division.

Operating income climbed 17% to $1.77 billion.

Net income for the fourth quarter dipped to $966 million, or 43 cents per share, compared with $977 million in the year-ago quarter. Fox cited higher costs from depreciation expenses associated with Fox’s taking majority stakes in Sky Deutschland and the YES network for the decline, which was offset by a $50 million gain from Fox’s share of BSkyB’s stock buyback program.

Regarding the company’s failed plans to buy Time Warner for $80 billion, “we have moved on,” said company chief operating officer Chase Carey during a call with analysts to discuss the quarterly results, with Fox-chief Rupert Murdoch adding, “this is our resolute decision,” also during the call.

Carey criticized Time Warner’s board, calling them “highly defensive” of the merger talks and was adamant that Fox no longer had plans to go after its rival. “Let me be clear: we are done,” he said, adding that the company also wasn’t interested in pursuing other companies, either.

Neither did Murdoch. “We have no plan to go out on the acquisition trail. All of our best businesses, we’ve built them ourselves.”

At the cable networks wing, regional sports nets powered gains of 6% in operating income, which reached $4.41 billion. However, some of the growth in affiliate free revenue was offset by higher costs related to recent channel losses and the consolidation of Fox’s ownership stake in the Yes Network, and other regional cablers. Operating income was also hit by exchange rate fluctuations in Latin America and India, Fox said.

Domestic affiliate revenue grew 14% while international revenue spiked 19% thanks to gains at the Fox International Channels unit and satcaster Star. Advertising revenue grew 8% for the quarter.

Fox’s filmed entertainment unit saw its operating income nearly triple from year-ago, to $339 million, thanks to “X-Men: Days of Future Past,” “Rio 2” and “The Fault in Our Stars.” Syndication and licensing coin from “Modern Family” and the reboot “24: Live Another Day” also plumped the division’s coffers.

More Biz

  • Plume of black smoke rising from

    Lawsuit Expected Next Week in Response to Universal Music Fire

    A Los Angeles law firm representing several Universal Music recording artists affected by the 2008 fire that destroyed a huge number of master recordings is expected to file a lawsuit as early as next week. King told Variety that he expects to sue for negligence and other torts. He declined to identify his clients, saying [...]

  • Nicholas Sparks

    Nicholas Sparks Responds as LGBT Discrimination Claim Resurfaces

    Nicholas Sparks, the prolific author of romance novels, is facing renewed allegations that he discriminated against gay students at his Christian school in North Carolina. The allegations were first leveled by Saul Benjamin, the former headmaster of the Epiphany School of Global Studies, in a wrongful termination suit he filed in 2014. Benjamin’s suit alleged [...]

  • Tyler the Creator and DJ Khaled

    Inside the DJ Khaled-Tyler, the Creator Chart Battle

    The controversy surrounding the recent chart battle between DJ Khaled and Tyler the Creator — in which a bundle promoting Khaled’s album was disqualified from adding to its sales tally for the May 24 Billboard 200 album chart, allowing the No. 1 spot to go to Tyler’s “Igor” — has been a first-class problem for [...]

  • Cuba Gooding Jr. Diversity

    Cuba Gooding Jr. Charged with Misdemeanor Forcible Touching

    Actor Cuba Gooding, Jr., has been charged with a misdemeanor count of forcible touching following an incident at a nightclub, the New York Police Department said Thursday. Gooding turned himself in to NYPD detectives on Thursday, surrounded by a throng of media. Later in the day, he was arraigned in front of Judge Herb Moses. [...]

  • Contract Placeholder Business WGA ATA Agent

    CAA Challenges Writers Guild of America's Legal Standing in Packaging Fee Lawsuit

    CAA has challenged the Writers Guild of America’s legal standing for bringing forth the lawsuit against Hollywood’s four largest talent agencies over the issue of packaging fees. CAA’s latest legal response to the suit filed by the WGA in Los Angeles Superior Court in April asserts that the guild does not have the right to [...]

More From Our Brands

Access exclusive content