21st Century Fox Revenues Exceed Forecasts, But Profit Down Partly Due To FS1 Launch
21st Century Fox’ Q3 profits saw "a drag" from investments in new cable channels, but total revenues "still surpassed analysts’ expectations," according to Brian Stelter of the N.Y. TIMES. Fox yesterday reported that in its first three months as a separate company, its revenues totaled $7.06B, "ahead of the Wall Street consensus" of $6.8B. But its adjusted net income of $768M "came in slightly under expectations." The decline in profit was "partly because of the company’s creation" of FS1, whose August premiere caused "a significant increase in expenses" (N.Y. TIMES, 11/6). BROADCASTING & CABLE's Jon Lafayette noted revenue for FX Networks rose 12% to $2.8B, but "because of the launch of new channels" such as FS1 and FXX, "expenses were up 22%." News Corp. COO Chase Carey said that a "successful launch" for FS1 and FXX was "the highlight of the quarter" (BROADCASTINGCABLE.com, 11/5). In L.A., Meg James reported Fox' broadcast TV segment "had a solid quarter," as it "generated more than" $1B in revenue, compared to $972M in the year-earlier period. The increase was "fueled by a doubling of retransmission consent fees" (LATIMES.com, 11/5). Meanwhile, DirecTV yesterday said that in Q3, it "increased revenue per user and reduced the percentage of customers who leave the service." The company also said that it "added 139,000 U.S. subscribers in the quarter -- the most since 2011 -- and eclipsed 37 million total subscribers." Sales rose 6% to $7.88B (LATIMES.com, 11/5). At presstime, shares of 21st Century Fox were trading at $33.84 per share, down 0.8% from the close of business yesterday. Shares of DirecTV were trading at $62.97, down 0.9% from the close yesterday (THE DAILY).