The media giant 21st Century Fox reported earnings growth in Q4 2018, despite weaker-than-expected sales in its cable TV segment.
The company’s cable business, which includes channels like Fox News and Fox Sports 1, has earned 4.35 billion USD in revenue. This represents an increase of 4% on an annual basis. However, the figures are slightly smaller than the 4.44 billion USD expected from the analysts.
According to the company, higher revenues were overshadowed by a 5% increase in spending, especially those related to the broadcasting of the World Cup.
The company’s total profits amounted to 1.29 billion USD, or 0.69 USD per share, in the quarter ending September 30. For comparison, it was 855 million USD earlier, or 0.46 USD per share. The analysts’ expectations were for the profit to be 0.52 USD per share.
The overall revenue of 21st Century Fox grew by nearly 3% to 7.17 billion USD, but still less than the expected 7.21 billion USD.
A significant 20% growth on year-on-year basis is reported in TV revenues that have boosted political advertising before the US midterm elections. The increase is due to attracted funds from sporting events.
The film sales reported a decline of 8%.
The shares of 21st Century Fox rose slightly in the hours before the start of the trading session. Since the beginning of the year, its stocks has increased by 37%.
The 21st Century Fox profit for the quarter also includes a 220 million USD tax bonus linked to the company’s decision to sell its stake in Sky.
At the moment, 21st Century Fox is in the midst of a massive restructuring that will focus on smaller companies focused on new and sporting content.
In August, Walt Disney has agreed to acquire the entertainment content of the company, including its Hollywood movie studios, for 71 billion USD.