New York: 21st Century Fox Inc. reported third-quarter earnings that topped analyst expectations as revenue grew thanks to higher advertising sales and a popular Super Bowl.
But its profits were tempered by higher expenses due to the launch of new channels including Fox Sports 1. The media conglomerate controlled by Rupert Murdoch said Wednesday that net income in the quarter through March fell 63 per cent to $1.05 billion, or 47 cents per share, from $2.85 billion, or $1.22 per share, a year earlier.
After adjustments that offset each other, the resulting 47 cents per share of earnings beat the 35 cents expected by analysts polled by FactSet. Revenue rose 12 per cent to $8.22 billion from $7.35 billion a year ago. Analysts were expecting revenue of $7.98 billion.
Pay TV revenue grew 11 per cent to $3.15 billion as it earned more in fees from distributors and advertising revenue rose. Operating earnings also rose despite the rising expenses for channel launches. Broadcast TV revenue rose 27 percent to $1.59 billion, thanks in part to the advertising bump from the Seahawks' defeat of the Broncos in Super Bowl XLVIII, the most watched TV show in U.S. history.
Movie studio revenue declined 3 per cent to $2.28 billion, while revenue from its satellite TV business rose 16 percent to $1.53 billion. Shares in New York-based Fox rose $1.13, or 3.5 per cent, to $33.25 in after-hours trading following the release of results. Earlier, shares closed down 29 cents at $32.12 in the regular session.
