21st Century Fox TV Revenue Up 6%

NEW YORK (AP) — Twenty-First Century Fox said today that its fiscal second-quarter net income dropped 49 percent, largely as a result of acquisition costs, but still matched Wall Street predictions.

The media entertainment giant controlled by Rupert Murdoch also posted significantly higher-than-expected revenue, helped by its acquisition of a controlling stake in German satellite TV operator Sky Deutschland AG in January 2013.

The company’s Television segment reported a 6% increase in revenue that was driven by the continued growth of retransmission consent revenues.

Quarterly advertising revenues grew slightly from the corresponding period of the prior year as strong growth in sports advertising, driven by increased National Football League and Major League Baseball programming rates and ratings as well as the benefit from two additional World Series games, was substantially offset by lower political advertising at the TV stations and the impact from lower general entertainment ratings, led by declines at X Factor.

The overall revenue increase was more than offset by higher expenses led by the increased investment in new scripted programming and higher sports costs resulting from two additional World Series games.

Revenue from its cable network programming increased 14% to $2.96 billion.

Revenue at the company’s film division increased 7 percent to $2.48 billion on better TV production results that stemmed from the syndication of the comedy series “Modern Family” and higher revenue from the drama “Homeland.” But the division wasn’t as profitable as it was a year ago, when its results were boosted by the theatrical and home viewing releases of popular movies.

For the quarter ended Dec. 31, Twenty-First Century Fox Inc. earned $1.21 billion, or 53 cents per share, down from $2.38 billion, or $1.01 per share, in the same quarter the year before.

The recent quarter’s results included expenses related to the company’s acquisition of a controlling stake in Sky Deutschland AG in January 2013. Excluding one-time items, the company posted an adjusted profit of 33 cents per share.

Revenue rose 15 percent, to $8.16 billion from $7.11 billion.

Analysts, on average, expected a profit of 33 cents per share on $7.87 billion in revenue, according to FactSet.

The results marked Twenty-First Century Fox’s second quarter as a separate entity from publishing company News Corp., which was spun off at the end of June 2013. Both entities remain controlled by Rupert Murdoch, who is CEO of 21st Century Fox and executive chairman of News Corp.

Shares of the New York-based company rose 87 cents, or 2.8 percent, to $32.02 in morning trading.