Fox's Revenue Drops More Than Expected

21st Century Fox Inc. on Wednesday reported weaker-than-expected revenue for its September quarter, hurt by the timing of key film releases and a weak showing by "The Fantastic Four."

Shares fell 2.6% in premarket trading.

Fox said revenue at its film studio unit tumbled 28% to $1.79 billion, due to the timing of releases and lower syndication revenue due to the sale of "How I Met Your Mother." The prior-year period included the "Dawn of the Planet of the Apes" theatrical release.

That offset 7.2% revenue growth at its cable network division, which is benefiting from higher affiliate fees, increased advertising revenue and lower expenses.

Revenue at its television segment was essentially flat at $1.05 billion, hurt by a 5% slide in advertising revenue due to one fewer week of National Football League broadcast in the current quarter and lower political revenue at TV stations.

Lower general entertainment ratings at the FOX Broadcast Network also weighed on revenue.

In all, the company posted a profit of $675 million, or 34 cents a share, down from $1.04 billion, or 47 cents a share, a year earlier. Excluding special items, per-share earnings were 38 cents, while analysts had expected 37 cents a share.

Total revenue fell to $6.08 billion from $7.89 billion, missing the $6.42 billion analysts had forecast.

Fox recently completed a transition that put media mogul Rupert Murdoch's children at the helm of the sprawling conglomerate, which includes the Fox broadcast network, cable channels in the U.S. and around the world, and one of the largest film and television studios. In September, Fox struck a deal to add National Geographic magazine and other assets to its media properties.

In July, Mr. Murdoch officially stepped down as chief executive of 21st Century Fox Inc., handing the title to his son James. The elder Mr. Murdoch, who is 84 years old, stayed on as executive chairman at Fox. His older son, Lachlan Murdoch was named executive co-chairman.

Mr. Murdoch split up his media empire two years ago, with the entertainment assets going to 21st Century Fox and the publishing assets, including The Wall Street Journal, going to News Corp.

Write to Chelsey Dulaney at [e-mail]

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(END) Dow Jones Newswires

November 04, 2015 08:25 ET (13:25 GMT)

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