NEW YORK: Twenty-First Century Fox, Inc. Wednesday reported financial results for the quarter ended September 30, 2017.
International affiliate revenue was up 11 per cent driven by rate and subscriber growth at both STAR India and FNG (Fox Networks Group) International. Double digit growth at STAR India and continued growth at FNG International saw international advertising revenue up 10 per cent in the quarter.
International OIBDA (operating income before depreciation and amortization) contributions were similar to the prior year quarter as higher contributions at STAR India were offset by lower contributions at FNG International where higher entertainment and sports programming costs more than offset the higher reported revenues.
The company reported total quarterly revenues of $7 billion, a $496 million, or 8 per cent, increase from the $6.51 billion of revenues reported in the prior year quarter. This increase reflects revenue growth reported across all operating segments, led by higher affiliate revenues at both the cable network programming and television segments and higher content revenues at the filmed entertainment segment.
Commenting on the results, Executive Chairmen Rupert and Lachlan Murdoch said: “The company’s double-digit gains in affiliate revenues demonstrate our strength in the dynamic global market for distinctive video brands and content, across both established distributors and new entrants. We delivered top-line growth at all of our businesses, backed by stand-out storytelling, sports and news, as well as a product focus that will drive greater consumption and compelling opportunities for financial returns on our content investment. Our solid first quarter performance puts us on track to achieve our overall financial and operational objectives for this fiscal year.”
Cable network programming quarterly segment OIBDA increased 9 per cent to $1.51 billion, driven by a 10 per cent revenue increase on higher affiliate and advertising revenues partially offset by an 11 per cent increase in expenses. The increase in expenses was primarily due to higher global sports programming costs reflecting the inaugural broadcasts of Big Ten college football at FS1 and Argentine Football Association matches at FNG International as well as contractual rights increases for Major League Baseball at the domestic sports channels and higher CONMEBOL soccer rights at FNG International.
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