Cable, 'Deadpool' help Fox earnings meet forecasts

Wed May 4, 2016 6:41pm EDT
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(Reuters) - Twenty-First Century Fox Inc (FOXA.O: Quote) reported quarterly earnings in line with Wall Street expectations as the company's cable channels brought in higher affiliate fees and ad revenue while its movie studio turned out blockbuster film "Deadpool."

Fox, owner of cable networks Fox News Channel and FX, reported a better-than-expected 5.7 percent rise in adjusted revenue for the quarter that ended in March. Excluding items, the company earned 47 cents per share, in line with projections from analysts polled by Thomson Reuters I/B/E/S.

Revenue from the cable network business, which accounts for more than half of Fox's total revenue, rose nearly 10 percent to $3.94 billion in the quarter.

Fox shares were flat in after-hours trading at $29.80.

Fox News Channel benefited from the raucous U.S. election campaign.

Total day and primetime ratings for Fox News topped all U.S. basic cable channels from January through March, the first time in the network's history that it has led basic cable in both categories for a full quarter, according to Nielsen data.

The network averaged nearly 1.4 million total-day viewers over the quarter and 2.4 million primetime viewers.

FX also got a boost from strong ratings for the miniseries "The People v. O.J. Simpson: American Crime Story".

Domestic advertising sales in the cable business rose 17 percent in the period, while overall television revenue increased 5 percent to $1.3 billion.   Continued...

The flag of the Twenty-First Century Fox Inc is seen waving at the company headquarters in the Manhattan borough in New York June 11, 2015.  REUTERS/Eduardo Munoz/File Photo