Cable networks carry water for Fox in Q2 beat

|By:, SA News Editor

Twenty-First Century Fox (FOX, FOXA) has reported fiscal Q2 earnings that saw revenue gains carried entirely by cable, against declines in broadcast TV and the film studio.

The company's income from continuing operations more than doubled to $1.84B, thanks to a tax benefit of $1.34B taken from the tax reform legislation. Excluding net income effects, adjusted EPS was $0.42, down from last year's $0.53 but beating expectations.

Cable success came in part from domestic affiliate revenue that rose 12% due to rate increases across all brands; domestic ad revenue fell 3% on lower ratings (and a lower volume of original series). Meanwhile, international affiliate revenue rose 13% with rate and subscriber growth both at FNG International and STAR.

Broadcast TV meanwhile not only saw lower ad revenues and declining NFL/baseball ratings but was hit by higher sports programming costs, which included a higher volume of college/NFL football games in the quarter.

Profitability at the film studio dropped amid higher releasing costs that multiplied with a bigger slate and offset revenues.

Revenue by segment: Cable Network Programming, $4.41B (up 11%); Television, $1.81B (down 5.8%); Filmed Entertainment, $2.25B (down 1%).

OIBDA by segment: Cable Network Programming, $1.365B (up 2.6%); Television, $56M (down 85%); Filmed Entertainment, $131M (down 66%).

Press release

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