“X-Factor” ratings, launch of new channels cuts into profits
Revenue climbed 15 percent at 21st Century Fox during its most recent quarterly period powered largely by the media company’s cable holdings, but the overall report was a lackluster one, with net income falling dramatically.
The company reported $8.16 billion in revenue for the three months ending in December, compared to $7.11 billion of revenue in the year-ago period. Wall Street had projected the company would report $7.89 billion in revenue.
Earnings per share of 43 cents were slightly less than the 45 cents the company reported in the year-ago period, but did beat consenus estimates of 33 cents. Excluding buybacks of BSkyB shares, earnings were 33 cents a shares, in line with estimates.
Net income cut in half falling from $2.4 billion in the year-ago period to $1.2 billion in the most recent quarter.
Fox attributed the decline in profitability to the launches of new channels, such as Fox Sports and FXX and the ratings woes of “The X-Factor.” The company said revenue growth was partly due to its satellite television segment, particularly the inclusion of Sky Deutschland revenue in its balance sheet.
More to come…