Twenty-First Century Fox Inc. (FOXA) reported better-than-expected revenue for the third quarter, but its adjusted earnings fell short of consensus forecast. FOXA shares slightly moved down on Wednesday following the results.
The media and entertainment company posted net income of $858 million, or 46 cents a share for the three-month period ended March 31, down from $799 million, or 43 cents a share in the comparable quarter, one year ago. On an adjusted basis, earnings were 49 cents a share that missed 53 cents a share estimated by analysts.
Fox broadcasted fewer National Football League games in the quarter and change in timings of cricket matches also affected ads revenue from its overseas operations.
Revenue for the quarter came in at $7.42 billion, down 2 percent from the same period last year, but just surpassed analysts’ average estimate of $7.4 billion.
The company’s cable division generated revenue of $4.42 billion in the quarter, up 9.8 percent versus last year, and representing more than 50 percent of its overall quarterly revenue. Analysts on average were looking the segment to post revenue of $4.4 billion. The unit includes Fox News and FX channels beside others.
Comparatively, revenue at Fox’s television unit declined 32 percent to $1.15 billion in the quarter, and also fell short of $1.28 billion estimated by analysts.
The company last year decided to sell majority of its businesses to Walt Disney Co. for a $52.4 billion. It plans to ask for shareholder consent for the deal this summer.
Speaking on the conference call with analysts, CEO James Murdoch said the company expects UK regulators to approve its bid to acquire remaining shares it does not already hold in European media and telecommunications company Sky plc within the next two months.
