Fox earnings miss forecasts after cable investments
By Lisa Richwine
LOS ANGELES (Reuters) - Rupert Murdoch's 21st Century Fox Inc (FOXA.O: Quote) TV and film company reported quarterly earnings on Tuesday that missed Wall Street expectations, hurt by investments in new cable channels and a weaker performance from its movie releases.
Fox shares dropped 2 percent in after-hours trading to $33.40, down from their $34.09 close on Nasdaq.
Fox posted adjusted earnings-per-share of 33 cents for the quarter that ended in September, down from 38 cents a year earlier. Wall Street analysts had forecast 35 cents per share on average, according to Thomson Reuters I/B/E/S.
In June, News Corp split its publishing and entertainment businesses, with the film and TV units forming the new 21st Century Fox.
For its first quarter as a separate company, Fox recorded total revenue of $7.06 billion, an 18 percent increase from the same period a year earlier.
But net income dropped as Fox invested in Fox Sports 1, a competitor to Walt Disney Co's (DIS.N: Quote) ESPN that launched in August, and FXX, a channel aimed at young adults that made its debut in September.
Quarterly income from continuing operations slumped to $768 million, down from $2.3 billion a year earlier. The previous year's quarter included $1.4 billion from an asset sale.
"The investment we are making, including the launch of FXX and Fox Sports 1, will drive future sustained growth," Murdoch said in a statement. Continued...