Wells Fargo analyst Marci Ryvicker says that Fox News chief Roger Ailes' troubles will likely be an "overhang" on the stock of 21st Century Fox, given that the news channel accounts for 9% of the parent's revenue and 25% of its EBITDA.
Ryvicker: Fox News = Quarter Of Fox Earnings
Wells Fargo media stock analyst Marci Ryvicker doesn’t know what the anticipated departure of chief Roger Ailes will mean to Fox News Channel, but she knows what Fox News Channel means to 21st Century Fox.
With a reach into 90.7 million homes, she writes in a brief note to clients today, Fox News accounts for 9% of the parent company’s total revenue and 25% of its EBITDA.
The channel also represents 20% of the fees the company receives from cable and satellite operators, 30% of its cable advertising revenue, 23% of total cable revenue and 37% of total cable EBITDA.
“We hope this helps in some capacity and anticipate the Ailes concerns to be an overhang on the stock until there is a formal statement from Fox explaining the potential impact,” Ryvicker writes. “We would anticipate some level of conversation when the company reports on Aug. 3.”
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