21st Century Fox sees Q3 income, revenue boost on strong cable results

Fox
'The People vs. O.J. Simpson.' Image: Fox

21st Century Fox today announced (pdf) its September quarter results, highlighted by a net income of $827 million on $0.44 EPS, a 21 percent increase annually.

The income boost came out of total quarterly revenues of $6.51 billion, up 7 percent annually. Fox attributed much of the growth to higher affiliate and advertising revenues generated at its Cable Network Programming segment and higher content revenues generated at the Filmed Entertainment segment.

“We delivered a strong quarter, growing our earnings by double digits on solid revenue gains. Whether it was Fox News rating #1 in basic cable, the 27 primetime Emmy Awards between FX Networks and FOX Broadcasting, producing 3 of the top 5 scripted shows on television, or our robust international growth, we demonstrated strong operational momentum across our global businesses,” said Chairmen Rupert and Lachlan Murdoch in a statement.

Sponsored by Google Cloud

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.

Breaking out Fox’s total segment OIBDA of $1.79 billion, cable programming drove the majority with $1.38 billion, up 6 percent annually. The profit for that segment came from a 10 percent revenue increase on higher affiliate and advertising revenues. The income was partially offset by a 12 percent increase in expenses stemming from higher international sports programming costs in Latin America and India due to the broadcast of the Rio Olympics, higher Major League Baseball sports rights costs at the regional sports networks and higher entertainment programming costs at FX Networks.

Meanwhile, domestic affiliate revenue increased 8 percent on the strength of rate increases a RSNs, FX Networks, FS1, and Fox News Channel. Domestic advertising revenue also jumped 6 percent because of higher ratings and pricing at Fox News.

But Television OIBDA fell 3 percent during the quarter on lower revenue due to a “market shift in advertising spending towards the Rio Olympics and the absence of the prior year broadcasts of the Emmy Awards and the FIFA Women’s World Cup final.” The losses were mitigated somewhat by higher retransmission consent revenues, higher local political advertising spending at the Television stations and higher content revenues at the FOX Broadcast Network.

The Filmed Entertainment OIBDA however more than doubled to $311 million, driven in part by licensing Homeland to Hulu.

Suggested Articles

Early reactions to Instagram's Reels, Facebook's answer to TikTok: no creativity seen, quite possibly no creativity needed.

Quibi subs complain about the quality of the shows, the ease of use of the platform and issues with buffering and speed, according to Kantar.

Roku found itself with more viewers than ever in its second quarter but still no profits.