ITV

Tag: Fox Sports 1

  • FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 3.1 per cent increase in adjusted annual total segment operating income before depreciation and amortisation (OIBDA) of $6488 million for the year ended 30 June, 2015 (FY-2015) as compared to the $6291 million last year due to higher contributions from the company’s Cable Network Programming and Filmed Entertainment segments.

     

    The company reported total revenues in FY-2015 of $28.99 billion, a $2.88 billion decrease from prior year revenues of $31.87 billion. Excluding the net revenues from the Direct Broadcast Satellite Television (DBS) businesses, Sky Italia and Sky Deutschland AG, which were sold in November 2014 to Sky plc (Sky), in both years, adjusted revenues increased $890 million, or 3.4 per cent, over the $26.06 billion of adjusted revenues in the prior year. This increase was primarily driven by double-digit revenue growth at the Cable Network Programming segment.

     

    Fox reported annual total segment operating income before depreciation and amortization (OIBDA) of $6.72 billion, which is equal to the amount reported in the prior year. Excluding the OIBDA contributions from the DBS businesses in both years, OIBDA increased $197 million, or the above mentioned 3.1 per cent, over the $6.29 billion of adjusted OIBDA in the prior year.

     

    Company Speak

     

    Fox executive chairman Rupert Murdoch said, “We made clear operational strides over the last year that will further position us to benefit from the strong and growing global demand for high quality video content. We delivered a solid financial performance, driven by sustained gains in affiliate fees, while we continued to invest in building our new channels Fox Sports 1, FXX and Star Sports. The appeal of our new sports rights resonated with consumers globally, whether it was Star Sports in India setting new records with hundreds of millions of viewers for the ICC Cricket World Cup, or the more than 25 million viewers who watched the Women’s World Cup Final on Fox. Our film studio achieved outstanding critical and box-office success with a truly diverse range of films and we are proud of the creative excellence that earned it the most Academy Awards in the industry. Our company is well positioned for this time of opportunity in our industry. We will balance the utilization of our strong balance sheet to drive growth. Today’s announcement of our new $5 billion buyback authorization reflects our ongoing program to provide direct shareholder returns.”

     

    Cable Network Programming

     

    Cable Network Programming annual segment OIBDA increased five per cent to $4.65 billion, driven by a 12 per cent revenue increase led by continued strong affiliate revenue growth and higher advertising revenues. The revenue improvement was partially offset by a 16 per cent increase in expenses, representing higher sports programming costs driven by the broadcasts of the ICC Cricket World Cup at Star Sports, increased Major League Baseball and NASCAR rights costs at Fox Sports 1 (FS1), and higher professional team rights costs at the regional sports networks (RSNs) as well as increased entertainment programming costs at FX Networks. The segment OIBDA growth was adversely impacted by five per cent from foreign exchange rate fluctuations, primarily in Latin America and Europe.

     

    Domestic affiliate revenue increased 17 per cent reflecting the combination of sustained growth at the regional sports networks (RSNs), Fox News Channel and FX Networks, increased contribution from FS1, and the consolidation of the Yankees Entertainment and Sports Network (the YES Network). International affiliate revenue increased three per cent driven by strong local currency growth at the Fox International Channels (FIC) and Star, partially offset by a 12 per cent adverse impact from the strengthened US dollar.

     

    Domestic advertising revenue grew four per cent over the prior year period led by double-digit growth at the sports channels, including the impact of the consolidation of the YES Network, as well as growth at Fox News and FX Networks. International advertising revenue increased 14 per cent due to strong local currency growth at Star and FIC, which was partially offset by a five per cent adverse impact from the strengthened US dollar.

     

    OIBDA from the domestic channels increased 12 per cent from the prior year, led by strong double-digit growth at the RSNs, which includes the impact of the consolidation of the YES Network, as well as higher contributions from Fox News Channel and National Geographic Channels. Annual OIBDA at the company’s international cable channels declined 16 per cent from the prior year as double digit local currency growth at the FIC channels and Star entertainment channels was more than offset by the impact of the ICC Cricket World Cup at Star Sports and the adverse impact from the strengthened US dollar, primarily in Latin America and Europe.

     

    Television

     

    Full year segment OIBDA of $718 million decreased $164 million or 19 per cent versus the prior year. The decline principally reflects the absence of advertising revenue and OIBDA generated from the broadcast of the Super Bowl in the prior year. Excluding the impact of the Super Bowl in the prior year, segment revenues were consistent with the year ago as strong retransmission consent revenue growth was counterbalanced by a 6 percent decline in advertising revenues reflecting overall lower general entertainment ratings at the Fox Broadcast Network.

     

    Filmed Entertainment

     

    Full year segment OIBDA of $1.45 billion increased $87 million, or six per cent, over prior year amounts reflecting higher film studio contributions partially offset by lower contributions from the television production businesses and the absence of full year contributions from Shine Group (Shine), which was contributed into the Endemol Shine Group joint venture in December 2014. The film studio’s growth was led by strong worldwide theatrical and home entertainment performance across a diverse set of releases, including Dawn of the Planet of the Apes, The Fault In Our Stars, Taken 3, Gone Girl, Kingsman: The Secret Service and The Maze Runner as well as the home entertainment performance of Rio 2. The film studio’s commercial and creative success was further highlighted by the all-time industry record it set of more than $5.5 billion in global box-office receipts for calendar 2014, as well as its industry leading eight Academy Awards for Fox Searchlight, including Best Picture for Birdman: Or (The Unexpected Virtue of Ignorance). Segment OIBDA growth was also adversely impacted by nine per cent from foreign exchange rate fluctuations.

     

    Total equity (losses) earnings of affiliates

     

    Annual equity earnings from affiliates were $904 million as compared with $622 million in the prior year. The increased contributions from affiliates reflects increased contributions from Sky primarily resulting from the Company’s share of Sky’s gains on the sale of its ownership stakes in National Geographic Channels International, Sky Betting & Gaming (Sky Bet) and its shares in ITV partially offset by purchase price amortization recorded by Sky related to its acquisition of the DBS businesses from the Company, as well as the absence of pre-tax gains related to the Company’s participation in Sky’s share repurchase program which ended last fiscal year. The higher Sky contributions were partially offset by the inclusion of equity losses of Endemol Shine Group, the absence of the YES Network contributions in the current year resulting from its consolidation in February 2014 and higher losses from Hulu.

  • Fox Cable Network Programming business revenue up 14.2% in Q2-2015

    Fox Cable Network Programming business revenue up 14.2% in Q2-2015

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 1.3 per cent drop in total revenue to $8055 million in the quarter ended 31 December, 2014 (Q2-2015, current quarter) as compared to the $8163 million reported for the year ago quarter (quarter ended 31 December, 2013).

     

    In November 2014, the Company sold its 100 per cent and 57 per cent ownership stakes in Sky Italia and Sky Deutschland, respectively, to Sky for approximately $8.8 billion comprised approximately $8.2 billion in cash received, net of $650 million of cash paid to acquire Sky’s 21 per cent interest in NGCI, increasing the Company’s ownership stake in NGCI to 73 per cent.

     

    Excluding the revenue from the satellite businesses that were sold, revenue rose 10 per cent to $7.42 billion in the current quarter over the $6.73 billion of adjusted revenue in the prior year quarter. Sky Italia and Sky Deutschland were a part of Fox’s Direct Broadcast Satellite Television (“DBS”) businesses.

     

    Fox reported OIBDA of $1.72 billion which included $27 million of OIBDA from the DBS businesses. Excluding the OIBDA contributions from the DBS businesses in the current and prior year quarters, adjusted OIBDA grew by $181 million or 12 per cent from $1.51 billion in the prior year to $1.70 billion. This improvement reflects OIBDA growth at the Company’s Cable Network Programming and Television segments says the company. Adjusted OIBDA growth was adversely impacted by approximately $90 million or 6 per cent from foreign exchange rate fluctuations, primarily in Latin America.

     

    Fox chairman and CEO Rupert Murdoch said, “We delivered solid quarterly results despite continuing currency headwinds and ratings challenges at the Fox broadcast network. Our growth was led by sustained affiliate revenue growth in our channels business. I am also very proud of the creative successes that we have achieved at Twentieth Century Fox, which set a global box office record in 2014 and leads the industry with 24 Academy Award nominations, including Best Picture nominations for Birdman and The Grand Budapest Hotel, as well as at our television production studios, which have produced the Emmy and Golden Globe winning Fargo, the critically acclaimed American Horror Story and the promising new series Empire.

     

    “In addition to the operational success achieved this past quarter, we also executed two significant strategic transactions, the combination of our European satellite television holdings, creating Europe’s leading pay television business, and the formation of the Endemol Shine Group joint venture. These transactions further enhance our ability to drive long-term value for all of our shareholders,” he added.

     

    Cable Network Programming

     

    Fox Cable Network Programming business (CNP), which is its largest segment in terms of revenue and operating profit, reported a 14.2 per cent jump in revenue in the current quarter to $3384 million from $2964 million in Q2-2014. OIBDA (Operating Income before Depreciation and Amortization) of CNP segment rose 11.7 per cent to $1159 million in Q2-2015 from $1038 million in the year ago quarter.  The OIBDA improvement in the current quarter was driven by a 14 per cent revenue increase on strong affiliate and advertising revenue growth says the company.

     

    The revenue improvement was partially offset by a 16 per cent increase in segment expenses, approximately half of which reflected the combined impact of the planned investments in the new sports channels, Fox Sports 1 and Star Sports, coupled with the consolidation of the Yankees Entertainment and Sports Network (the YES Network). The expense growth at the new sports channels was led by increased rights fees related to the inaugural broadcast of Major League Baseball Divisional and League Championship playoff games at Fox Sports 1. Segment OIBDA growth was adversely impacted by over $65 million or approximately 6 per cent from foreign exchange rate fluctuations, primarily in Latin America, as mentioned above.

     

    Television business

     

    Fox Television business reported almost flat revenue (drop of 0.4 per cent) at $1623 million in the current quarter versus the $1630 million in the year ago quarter. Television business OIBDA increased 33 per cent in Q2-2015 to $290 million from $218 million in Q2-2014.

     

    The increase in segment OIBDA was driven by lower programming costs at the FOX Broadcast Network from the cancellation of ‘X-Factor’, the absence of’ Glee’ in the current year quarter and the shift of the Major League Baseball League Championship Series to Fox Sports 1, all of which were partially offset by higher rights fees related to the new National Football League contract. 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 3 per cent decline in advertising revenues. This advertising revenue decline reflects the impact from lower general entertainment ratings at the Fox Broadcast Network, which was partially offset by increased political advertising revenue growth at the local television stations.

     

    Filmed Entertainment business

     

    Filmed Entertainment (FE) business reported revenue growth of 11.1 per cent in Q2-2015 to $2753 million from $2477 million in the corresponding year ago quarter. This growth was led by the performance of several successful worldwide theatrical releases including ‘The Maze Runner’ and ‘Gone Girl’, which have grossed over $340 million and over $365 million in worldwide box office to date, respectively. As a result of these and other successful releases in the year the studio has broken the all-time global box-office industry record, having generated more than $5.5 billion in 2014 claims the company.

     

    FE reported flat OIBDA (down 0.3 per cent) of $336 million versus $337 million in the corresponding year ago quarter. This was due to increased contributions from the film studio, led by a strong theatrical slate was offset by lower contributions from the television production businesses driven by fewer series deliveries, including the absence of ‘How I Met Your Mother’, ‘White Collar’ and ‘Glee’.

     

    Direct Broadcast Satellite Television (DBS)

     

    DBS segment revenue in Q3-2015 was down 56.3 per cent to $663 million from $1517 million in Q2-2014. DBS reported OIBDA of $27 million in Q2-2015 versus $30 million last year.

     

    Consolidated revenues by component

     

    Affiliate Fees grew 17 per cent to $2480 million in Q2-2015 from $2119 million in Q2-2014. Subscription was down 55.7 per cent due to the sale of Sky Italia and Sky Deutschland in Q2-2015 to $605 million from $1366 million in the year ago quarter. Advertising revenue was almost flat down 0.6 per cent) to $2370 million in Q2-2015 as compared to $2385 million in Q2-2014.

     

    Revenue from Content was up 15.4 per cent to $2487 million in the current quarter from $2156 million in Q2-2014. Revenue from ‘Other’ component was down 17.5 per cent to $113 million from $137 million in Q2-2014.

  • NBC is set to showcase elite football

    NBC is set to showcase elite football

    MUMBAI: Fox Sports 1, Rupert Murdoch’s challenge to ESPN, will face tough competition from NBC Universal as it opens the first season of its three-year, $250 million deal with England’s Premier League, which will show every game on television or on digital streams.

     

    NBC is augmenting the games, which are being produced by the league, with its announcers, saving on costs.

     

    “It’s a blue-chip property that has not been exploited in the way that we will take advantage of it,” said NBC Sports president programming Jon Miller, which is being rebranded as NBCSN. “It provides all 380 games to every fan at no additional cost, which has never been done before.”

     

    True, but the 184 games that will be digitally streamed free on Premier League Extra Time will be accessible only to those who pay for cable, satellite or telephone company subscriptions that include NBCSN. The strategy underscores how important NBCSN is to its parent company’s sports future and how media companies like NBC Universal want to keep subscribers from cutting their cords to pay-TV providers. Extra Time is widely available; the only major cable provider that has not signed up is Charter.

     

    Those cable, satellite and telephone subscriptions will also be required for laptop and smartphone users looking to watch the full Premier League schedule on NBC Sports Live Extra, the TV Everywhere platform.

     

    In all, NBCSN will carry 154 games, the surest sign that the deal was structured to benefit the cable network by filling a lot of time slots with elite soccer, with replays of the day’s and week’s best matches, and studio programming. In addition to Extra Time’s 184 games, NBC will broadcast 21 games, CNBC eight, USA six, and the remaining seven have not been assigned.