21st Century Fox Profit Tops Estimate

(RTTNews) - Twenty-First Century Fox Inc (FOX, FOXA) Tuesday reported a decline in first-quarter profit, despite a 12 percent increase in revenues, due mainly to the absence of one-time gains recorded last year. Nevertheless, both earnings and revenue for the quarter topped Wall Street estimates, led by continued growth in the cable and film entertainment segments.

During the quarter, the company's cable network segment benefited from increased advertising revenue, and the film entertainment segment gained from the release of "Dawn of the Planet of the Apes, said CEO Rupert Murdoch.

Murdoch said the company has been investing in growing brands, mainly its new channels FXX, Fox Sports 1 and STAR Sports.

Twenty-First Century Fox, based in New York, posted quarterly net earnings to stockholders of $1.04 billion or $0.47 per share, compared with $1.26 billion or $0.54 per share last year.

Results for the quarter include $7 million loss from discontinued operations, compared with a gain of $487 million last year.

Excluding items, adjusted earnings for the quarter were $0.39 per share, compared with $0.33 per share a year ago.

On average, 17 analysts polled by Thomson Reuters estimated earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter climbed 12 percent to $7.89 billion from $7.06 billion in the prior year. Fifteen analysts had a consensus revenue estimate of $6.25 billion for the quarter.

Cable network programming revenue rose 15 percent to $3.23 billion, on strong affiliate and advertising revenue growth, partly offset by a 21 percent rise in expenses.

Filmed entertainment revenue climbed 17 percent to $2.48 billion, led by the releases of "Dawn of the Planet of the Apes" and "Maze Runner", which grossed over $700 million and over $300 million in worldwide box office to date, respectively. The segment also benefited from the performance of "The Fault in Our Stars" and "Rio 2."

Direct broadcast satellite television revenue rose 4 percent to $1.45 billion, while television revenue was unchanged at $1.05 billion.

In October, Twenty-First Century Fox and private-equity firm Apollo Global Management LLC (APO) agreed to create a content and distribution joint venture to which the company will contribute its interests in the Shine Group and cash, comprising an aggregate carrying value of about $800 million.

The JV will comprise the Shine Group, Endemol, and the CORE Media Group and will be equally owned by the company and Apollo.

In June 2013, Twenty-First Century Fox split from News Corp (NWSA, NWS) and went on to possess the media and entertainment assets including FOX, National Geographic Channels, STAR, as well as film studio Twentieth Century Fox Film.

FOXA closed Tuesday at $33.33, down $1.02 or 2.97%, on a volume of 26.2 million shares on the Nasdaq. In after hours, the stock gained $0.42 or 1.26%, at $33.75.