Twenty-First Century Fox Profit Down, But Meets Street

(RTTNews) - Twenty-First Century Fox Inc., (FOXA, FOX) on Wednesday reported a third-quarter profit that dropped from last year, as an increase in revenues were offset by higher operating costs. Earnings for the quarter came in line with Wall Street estimates, while revenues trumped expectations.

Fox's third-quarter profit dropped to $841 million or $0.44 per share from $975 million or $0.46 per share last year.

On an adjusted basis, earnings were $907 million or $0.47 per share, up from $888 million or $0.42 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.47 per share for the quarter.

Revenues for the quarter rose 6 percent to $7.23 billion from $6.84 billion last year. Analysts had a consensus revenue estimate of $7.17 billion for the quarter.

Revenue growth reflects higher affiliate and advertising revenues at both the Cable Network Programming and Television segments partially offset by lower television production revenues at the Filmed Entertainment segment.

"We delivered significant revenue and earnings growth in the quarter on the strength of gains in affiliate and advertising revenues across our domestic and international cable portfolios as well as at our television segment," said Executive Chairmen Rupert and Lachlan Murdoch.

Revenue in the cable-network segment rose 10 percent from last year to $3.94 billion, due to growth in affiliate revenues and advertising revenues, Fox said.

Revenue in the filmed entertainment segment decreased to $2.32 billion from $2.39 billion last year. Television revenue rose to $1.30 billion from $1.24 billion last year.

Operating costs rose to $4.47 billion from $4.36 billion last year.

FOXA closed Wednesday's trading at $29.80, down $0.16 or 0.53% on the Nasdaq. The stock further dropped $0.30 or 1.01% in the after-hours trading.