Twenty-First Century Fox Profit Down - Update

(RTTNews) - Twenty-First Century Fox Inc. (FOX) Thursday reported a sharp drop in profit for the second quarter, hurt largely by increased operating expenses and acquisition costs. Meanwhile, revenues for the quarter rose 15 percent helped by acquisition of a ownership stake in Sky Deutschland in January 2013.

The company's second quarter profit dropped to $1.21 billion or $0.53 a share from $2.38 billion or $1.01 a share a year ago. Income from continuing operations were $0.43 per share, down from $0.45 per share a year ago.

Results for the quarter include a $79 million increase in depreciation and amortization expense related to the consolidation of Sky Deutschland.

Excluding special items, earnings for the quarter were $0.33 per share, compared to $0.35 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude one-time items.

Twenty-First Century's total revenue for the second quarter grew 15 percent to $8.16 billion from $7.11 billion last year. Three analysts had a consensus revenue estimate of $7.81 billion for the quarter.

The media giant's revenue growth reflects $605 million increase at its Direct Broadcast Satellite Television or DBS segment, related mainly to the inclusion of Sky Deutschland AG revenues, and a $366 million growth at the Cable Network Programming segment, led by continued affiliate revenue growth.

Chief Executive Rupert Murdoch said, "In the fiscal second quarter, we continued to deliver top-line revenue growth across our businesses, including double-digit increases in affiliate fees and retransmission consent revenues as well as the inclusion of Sky Deutschland results."

Operating costs rose to $5.55 billion from $4.52 billion, while selling, general and administrative costs rose to $1.09 billion from $998 million.

FOX is currently trading at $31.54, up $0.39 or 1.25%, on the NYSE.