Following yesterday’s Disney Earnings release, 21st Century Fox beat expectations on both income and revenue. While commenting on their earnings, the leaders of 21st Century Fox reiterated that they are looking forward to completing their deal with Disney.
Executive Chairmen Rupert and Lachlan Murdoch said:
“We delivered another quarter of solid top-line revenue growth including the further acceleration of gains in global affiliate revenues and despite challenging revenue comparisons for our TV segment. Our results also reflect increased investment behind higher volumes of global sporting events as well as film releases from our studio, which led the industry in Golden Globe awards and Oscar nominations. Looking ahead, we are focused on continuing to deliver value to our shareholders through achieving our near-term growth plans, completing our proposed acquisition of the balance of Sky, obtaining the required approvals for the successful completion of our transaction with Disney and planning for the exciting launch of the new ‘Fox’.”
21st Century Fox reported quarterly income from continuing operations attributable to 21st Century Fox stockholders of $1.84 billion ($0.99 per share), a 114% increase compared to $857 million ($0.46 per share) reported in the prior year quarter. The current quarter income from continuing operations attributable to 21st Century Fox stockholders includes a tax benefit of $1.34 billion, or $0.72 per share, due to a non-cash remeasurement of the Company’s net deferred tax liability related to the enactment of the Tax Cuts and Jobs Act. Excluding the net income effects of Impairment and restructuring charges, Other, net, tax reform remeasurement benefit and adjustments to Equity losses of affiliates, adjusted quarterly earnings per share from continuing operations attributable to 21st Century Fox stockholders was $0.42 compared to the adjusted result of $0.53 for the same quarter of the prior year.
They reported total quarterly revenues of $8.04 billion, a $355 million, or 5%, increase from the $7.68 billion of revenues reported in the prior year quarter. This increase reflects higher affiliate, syndication and advertising revenues reported at the Cable Network Programming segment partially offset by lower revenues reported at the Television segment. Quarterly income from continuing operations before income tax benefit (expense) of $703 million decreased 49% from the $1.39 billion reported in the prior year quarter. Quarterly total segment operating income before depreciation and amortization (“OIBDA”) of $1.44 billion was 28% lower than the prior year quarter as higher contributions from the Cable Network Programming segment were more than offset by lower contributions from the Company’s Television and Filmed Entertainment segments.