After Break-Up, 21st Century Fox Posts Mixed 4Q Results
In its first earnings report since breaking away from News Corp. (NASDAQ:NWSA), 21st Century Fox (NASDAQ:FOXA) disclosed weaker-than-expected profits on Tuesday even as revenue jumped 16% on cable strength.
Shares of the New York-based parent of FOX Business ticked up about 1.5% following the results.
21st Century Fox reported income from continuing operations of $977 million, or 42 cents a share, compared with $596 million, or 25 cents a share, a year earlier.
Excluding certain items, 21st Century Fox said it earned 31 cents a share, up from 27 cents the year before but trailing the Street’s view of 34 cents.
Revenue climbed 16% to $7.21 billion, surpassing consensus calls from analysts for $7.12 billion. The company said about half of the increase reflects growth at its cable network programming businesses and filmed entertainment segments.
Earlier this summer the company was separated from News Corp., which still controls The Wall Street Journal, the New York Post and publishing house HarperCollins.
“Although a significant amount of time and effort was spent over the past twelve months on this separation, we never lost focus on the operation of our businesses,” CEO Rupert Murdoch said in a statement. “21st Century Fox is poised to deliver continued innovation for our customers as well as sustained growth and long-term value for our stockholders."
21st Century Fox’s results were highlighted by a 16% jump in cable network revenue to $2.95 billion amid strength from Fox News Channel and National Geographic. Analysts had projected cable revenue of $2.83 billion.
Television revenue fell less than 1% to $1.1 billion, while filmed entertainment reported a 3% increase in sales to $2.04 billion.
Later in August 21st Century Fox is set to launch FOX Sports 1, a new sports network aimed at challenging Walt Disney’s (NYSE:DIS) juggernaut ESPN.
Shares of 21st Century Fox were recently up 1.5% in extended trading to $31.70, putting them on pace to extend a 2013 rally of 22.42%.