Broadcast revenue plummets, points to lack of Super Bowl revenue
21ST CENTURY FOX REPORTS THIRD QUARTER INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE OF $1.33 BILLION AND TOTAL SEGMENT OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION OF $1.89 BILLION
NEW YORK, NY, May 9, 2018 – Twenty-First Century Fox, Inc. (“21st Century Fox” or the “Company” -- NASDAQ: FOXA, FOX) today reported financial results for the three months ended March 31, 2018.
The Company reported quarterly income from continuing operations attributable to 21st Century Fox stockholders of $876 million ($0.47 per share), an 8% increase compared to $811 million ($0.44 per share) reported in the prior year quarter. Excluding the
net income effects of Impairment and restructuring charges, Other, net, and adjustments to Equity losses of affiliates1 adjusted quarterly earnings per share from continuing operations attributable to 21st Century Fox stockholders2 was $0.49 compared to the adjusted result of $0.54 for the same quarter of the prior year. The current quarter’s segment operating income before depreciation and amortization (“OIBDA”)3 reflects an approximate $60 million charge from higher compensation expense due to the modification of equity awards resulting from the proposed Disney and New Fox transactions4 which negatively impacted adjusted earnings per share by $0.02 per share.
The Company reported total quarterly revenues of $7.42 billion, a 2% decrease from the $7.56 billion of revenues reported in the prior year quarter. This decrease principally reflects the absence of advertising revenues generated by Super Bowl LI in the prior year at the Television segment partially offset by higher affiliate, syndication and advertising revenues at the Cable Network Programming segment.
Quarterly income from continuing operations before income tax expense of $1.33 billion increased 6% from the $1.25 billion reported in the prior year quarter. Quarterly OIBDA of $1.89 billion was 2% lower than the amount reported in the prior year quarter as higher contributions from the Cable Network Programming segment were more than offset by lower contributions from the Company’s Television and Filmed Entertainment segments as well as the higher compensation expense related to the Disney and New Fox transactions included in the Other, Corporate and Eliminations segment.
Commenting on the results, Executive Chairmen Rupert and Lachlan Murdoch said: “We continue to make operational and financial progress against near-term objectives as we also work to close our strategic transactions. Our cable segment delivered its highest earnings ever in our fiscal third quarter, propelled by sustained double-digit gains in domestic affiliate revenues. Creatively, we are firing on all cylinders. Our stand-out programming continues to drive up the value of our video brands to distributors, as well as build our direct relationship with consumers, as we’re demonstrating with the successful inaugural season of Indian Premiere League on STAR Sports and Hotstar platforms. Our film studio delivered boxoffice and awards momentum that we expect to continue with the upcoming release of Deadpool 2.”
THE WRAP: 21st Century Fox reported after market hours on Wednesday that profits for the 2018 third quarter were below Wall Street’s expectations.
DEADLINE.COM: The television group saw its operating income fall a precipitous $112 million to $78 million in the quarter, a decline that reflects the absence of Super Bowl ad revenue from a year ago.