FOX Q1 2016 Quarterly Earnings Report

NEW YORK, NY, November 4, 2015 – Twenty-First Century Fox, Inc. (“21st Century Fox” or the “Company” -- NASDAQ: FOXA, FOX) today reported financial results for the three months ended September 30, 2015.

The Company reported total quarterly revenues of $6.08 billion, a decrease of $406 million, or 6%, from the $6.48 billion of adjusted revenues (1) reported in the prior year. This decline in adjusted revenues was primarily the result of a 7% revenue increase at the Cable Network Programming segment due to higher affiliate and advertising revenues being more than offset by lower revenues generated at the Filmed Entertainment segment due to lower theatrical revenues and the absence of revenues from Shine in the current quarter. The adverse impact of foreign exchange rates and the absence of revenues from Shine in the current quarter each impacted adjusted revenue growth by approximately $200 million, or 6% in total.

Quarterly total segment operating income before depreciation and amortization (“OIBDA”)(2) of $1.54 billion decreased $37 million, or 2%, from the $1.57 billion of adjusted OIBDA(3) reported in the prior year. This decline in adjusted OIBDA reflects double-digit growth at both the Company’s Cable Network Programming and Television segments which was more than offset by reduced contributions from the Filmed Entertainment segment. The adverse impact of foreign exchange rates impacted adjusted OIBDA growth by $109 million, or 7%.

The Company reported quarterly income from continuing operations attributable to stockholders of $678 million ($0.34 per share), compared with $1.04 billion ($0.48 per share) in the prior year. Excluding the net income effects of Other, net and gains and other adjustments related to Sky and Endemol Shine Group included in Equity earnings from affiliates, adjusted quarterly earnings per share(4) from continuing operations attributable to stockholders was $0.38 compared with the adjusted year-ago result of $0.39.



CABLE NETWORK PROGRAMMING
Cable Network Programming quarterly segment OIBDA increased 26% to $1.31 billion, driven by a 7% revenue increase on strong affiliate revenue growth and higher advertising revenues combined with lower expenses. The 2% decline in expenses was primarily due to the absence of the prior year broadcast of the India vs. England cricket series at STAR Sports. Foreign exchange fluctuations, primarily in Latin America and Europe, adversely impacted segment OIBDA growth by 5%.

Domestic affiliate revenue increased 11% reflecting strong growth at FS1 and sustained growth across all of the other domestic cable networks. Domestic advertising revenue grew 4% over the prior year period reflecting solid growth at the sports channels and Fox News. Domestic OIBDA contributions increased 19% over the prior year led by higher contributions from FS1, FX Networks and Fox News.

International affiliate revenue decreased 1% as 11% local currency growth at STAR and the Fox International Channels (“FIC”) was more than offset by a 12% adverse impact from the strengthened U.S. dollar. International advertising revenue decreased 1% as continued local currency growth at FIC and the STAR entertainment channels was offset by an 11% adverse impact from the strengthened U.S. dollar as well as the absence of advertising revenues from the prior year broadcast of the India vs. England cricket series at STAR Sports. Quarterly OIBDA at the international cable channels increased 53% reflecting strong local currency growth partially offset by the adverse impact of the strengthened U.S. dollar.

TELEVISION
Television generated quarterly segment OIBDA of $196 million, a $22 million or 13% increase over the $174 million reported in the prior year quarter. The increase in segment OIBDA was driven by lower operating costs led by lower programming expenses at the FOX Broadcast Network and TV stations partially offset by higher marketing costs at the FOX Broadcast Network. Quarterly segment revenues were consistent with those from the corresponding period in the prior year as strong retransmission consent revenue growth was counterbalanced by a 5% decline in advertising revenues primarily reflecting the expected impact of one less week of National Football League broadcasts in the current quarter as compared to the prior year quarter and lower political revenues at the TV stations, as well as lower general entertainment ratings at the FOX Broadcast Network.