No blockbuster from Fox results before Disney sale
NEW YORK (Reuters): Twenty-First Century Fox Inc (FOXA.O) fell short of estimates for quarterly revenue on Wednesday, hit by the absence of a major movie hit at the end of the US summer as it prepares to sell the bulk of its business to Walt Disney.
Murdoch agreed in June to sell Fox’s entertainment assets to Walt Disney (DIS.N) for $71.3 billion and is nearing completion of the deal after receiving approval from the European Commission this week, subject to the sale by Disney of its interests in some news and documentary channels.
Revenue at Fox’s filmed entertainment division fell 7.5 percent to $1.82 billion, missing analysts’ estimate of $1.95 billion.
Shares in the company were up less than 1 percent in premarket trade. Revenue from Fox’s cable division rose 3.6 percent to $4.35 billion, accounting for more than half of total revenue in the quarter and compared to analysts’ average estimate of $4.48 billion, according to IBES data from Refinitiv.
Overall revenue rose to $7.18 billion from $7.00 billion, shy of a consensus estimate of $7.23 billion.
After the Disney sale is completed Fox will carve out a new company, including Fox News, Business, Sports and the Broadcasting Company which it expects to have annual revenue of around $10 billion.
The Los Angeles-based studio and media company said net income attributable to shareholders increased to $1.29 billion or 69 cents per share in the first quarter ended Sept. 30, from $855 million or 46 cents per share a year earlier. Excluding items, Fox earned 52 cents per share, in-line with analysts’ estimate.