Twenty-First Century Fox, Inc. (FOXA - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 52 cents per share, which increased 6.1% on a year-over-year basis. However, the figure missed the Zacks Consensus Estimate by a penny.
Revenues of $7.18 billion increased 2.5% from the year-ago quarter. However, the figure missed the Zacks Consensus Estimate of $7.25 billion.
The top-line growth was primarily attributable to increasing affiliate and advertising revenues from the Cable Network Programming and Television segments, which was offset by lower theatrical revenues at the Filmed Entertainment segment. Notably, foreign currency had a negative impact of about $110 million on revenue growth.
Segment wise, Cable Network Programming revenues (60.6% of total revenues) increased 3.6% to about $4.4 billion. Television segment net revenues (17.8%) increased 19.8% on a year-over-year basis to about $1.3 billion. However, Filmed Entertainment revenues (25.3%) declined 7.5% to $1.8 billion.
On the basis of components, affiliate revenues (48.7% of total revenues) increased 8% from the year-ago quarter to about $3.5 billion. Advertising revenues (24.7%) increased 9.2% year over year to about $1.8 billion. Other revenues (1.9%) increased 12.1% to $139 million. However, Content revenues (24.7%) declined 12.3% year over year to about $1.8 billion.
The Cable Network Programming segment gained from higher affiliate and advertising revenue growth, partially offset by increase in programming and contractual expenses. Increase in contractual rates of all domestic cable brands led to a 9% year-over-year increase in domestic affiliate revenues. Domestic advertising revenues increased 7% year over year primarily due to higher pricing at Fox News.
However, international affiliate revenues declined 1% due to unfavorable impact of a stronger U.S. dollar, which was offset by local currency growth at FNG International and STAR. International advertising revenues decreased 8% due to unfavorable impact of a stronger U.S. dollar and “lower local currency advertising revenue at FNG International more than offset local currency advertising growth at STAR.”
Filmed Entertainment revenues declined due to lower theatrical revenues from a “lower volume and mix of films released” in first-quarter fiscal 2019, which was offset by higher SVOD revenues.
The Television segment gained from higher advertising revenues and retransmission consent revenues. Advertising revenues increased 22% year over year to $799 million due to increased number of sports broadcast and higher political advertising revenues generated from the mid-term U.S. elections. Moreover, Retransmission consent revenues increased 19% year over year due to increase in contractual rate. This was offset by increase in sports programming costs by 17%.
Twenty-First Century Fox, Inc. Price, Consensus and EPS Surprise