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Tag: Rupert Murdoch

  • 21st Century Fox reports strong $8.5 bn Q2 revenue

    21st Century Fox reports strong $8.5 bn Q2 revenue

    MUMBAI: 21st Century Fox (Fox) reported strong second-quarter earnings even at a time when Disney is all set to take over a major part of the Murdoch empire. The company reported total quarterly revenues of $8.5 billion matching analysts’ estimates. Fox also added that it anticipates the transactions regarding the acquisition by Disney closing in the first half of calendar 2019.

    “This increase principally reflects higher affiliate revenues reported at the cable network programming and television segments and higher advertising revenue reported in the television segment partially offset by lower home entertainment revenue reported at the filmed entertainment segment. The impact of foreign exchange rates adversely impacted revenue growth by approximately $195 million, or 2 per cent in total,” the company commented in the earnings release.

    Fox reported 4 per cent increase in its cable network programming revenue reaching to $4.562 billion. While the domestic cable revenue increased by 7 per cent, international cable revenue declined 5 per cent. 11 per cent local currency growth at FNG International and Star adversely impacted international affiliate revenue. While the company saw cable network programming expense increase 7 per cent to $1.45 billion from its local sports acquisitions, it was partially offset by lower cricket rights costs by Star.

    “Reported international advertising revenue decreased 9 per cent as the adverse impact from the strengthened US dollar and lower local currency advertising revenue at FNG International more than offset local currency advertising growth at Star,” the release also added.

    The film division, powered by Bohemian Rhapsody theatrical revenue and pay-TV fees for The Greatest Showman, reported a 47 per cent increase in operating income. Television revenues surged nearly 19 per cent to $2.148 billion but reported $22 million loss due to higher sports programming costs.

    “Our company delivered another strong quarter of financial results, underpinned by distribution and advertising revenue increases at our domestic cable networks and broadcast businesses and the substantial gain on our sale of Sky. These results reflect our continued commitment to excellence in all aspects of our business. There has also been significant progress regarding the transaction with Disney and the spin-off of Fox Corporation including the effectiveness of the Form 10,” Fox executive chairmen Rupert and Lachlan Murdoch commented.

    The $71.3 billion mega-deal with Disney still needs final regulatory approval as regulators in America continue to conduct their review. After the finalisation, Fox will be left with Fox broadcasting, Fox News, and a few other channels.

    According to a report by MediaPost, the new Fox entity will be called Fox Entertainment and it will have a startup mentality. It will go beyond just TV or sports and news into newer avenues such as a content development accelerator.

  • IPL powers 21st Century Fox’s international ad revenue

    IPL powers 21st Century Fox’s international ad revenue

    MUMBAI: At a point when Rupert Murdoch’s media empire 21st Century Fox is preparing to sell the bulk of its film and TV assets to Walt Disney Co (Disney), its fiscal fourth-quarter earnings beat analysts’ expectations. The conglomerate’s total revenue was up 18 per cent from $6.7bn to $7.9bn in the April-June quarter thanks to the higher content revenues at the Filmed Entertainment segment and higher affiliate and advertising revenues at the Cable Network Programming and Television segments.

    Talking about the international revenue, Indian Premier League’s (IPL) contribution was mentioned. “Star India secured Indian Premier League’s global media and digital broadcast rights and, aided by the inaugural broadcast of the IPL, further penetration of its Hotstar platform and continued general entertainment growth, nearly doubled its profit contributions year over year,” the company said in a release. International advertising revenue which increased 55 per cent was led by the broadcast of the IPL at Star.

    While analysts were expecting 54 cents in per-share earnings on $7.55 billion in revenue, it earned 57 cents per share after certain items on $7.94 billion in revenue. Though the stock was unchanged following the release, shares of Fox have surged 62 per cent in the past 12 months in last one year.

    “As we move closer to combining our businesses with Disney and establishing new “Fox”, we are convinced that the paths we are creating for our iconic businesses will drive enduring and growing value for our shareholders,” executive chairmen Rupert and Lachlan Murdoch commented after the result. Lachlan Murdoch reiterated that news and live sports will underpin the profile of the new Fox in a call with analysts.

    The cash-and-stock transaction which is predicted to be closed in the first half of next year is awaiting the green light from more than a dozen countries, including China, Russia and regulators from the European Union, after winning approval from US regulators. Fox will retain its TV stations, Fox Business, Fox News and its sports channels after the sell.

    In such scenario, the three segments cable network programming, filmed entertainment, television boosted their revenue, and the first two improved their operating income too. The filmed entertainment unit which saw revenue jump some 27 per cent to $2.3 billion, the surge was driven largely by the success of Deadpool 2. Revenue from the cable division rose 13.8 per cent and accounted for more than half of overall revenue.

    Fox is still now locked in a bidding war with Comcast over the 61 per cent of Sky it does not currently own. While Comcast’s current offer is higher than Fox’s offering, it still has 46 days to revise its offer.

  • Murdoch pledges funding to Sky News

    Murdoch pledges funding to Sky News

    MUMBAI: Even as 21st Century Fox seeks clearance for its £11.7 billion (€13.2 billion) takeover of Sky, Rupert Murdoch has pledged to guarantee funding Sky News for up to five years. He has also agreed not to interfere editorially.

    Fox has also pledged that no Fox employee or board member who was a trustee or beneficiary of the Murdoch family trust “will influence or attempt to influence the editorial choices made by the head of Sky News”.

    Fox has strengthened the so-called “firewall” remedies it had already tabled, including “establishing a fully independent, expert Sky News editorial board”. This would be made up of two existing independent directors of Sky and a third member nominated by the Sky independent directors who would have “senior editorial and/or journalistic experience”.

    The Competition and Markets Authority (CMA) had said in its provisional findings last month that Murdoch’s bid raised media plurality concerns because the deal would give his family too much control over UK news media.

    Sky chief executive Jeremy Darroch cast doubt on the future of Sky News saying that the service was no longer critical to the pay-TV broadcaster. Sky has previously said that it could close Sky News if the Fox deal was blocked, a move that would eliminate the media plurality issue at a stroke.

    Fox did not submit any responses to the CMA’s consultation on other options for Sky News, including a full sale or spin-off.

    Also read:

    Comcast may renew bid for 21st CF

    James Murdoch could be next Disney CEO: FT

    Star India, FNG help prop up 21st CF Q2 numbers

  • Star India, FNG help prop up 21st CF Q2 numbers

    Star India, FNG help prop up 21st CF Q2 numbers

    BENGALURU: Rupert Murdoch’s media conglomerate 21st Century Fox has three segments–cable network programming (CNP) that contains Star India and Fox Networks Group International (FNG International), television and filmed entertainment (films). 21st Century Fox reported 4.6 per cent yoy growth in revenue for its second quarter ended 31 December 2017 (Q2 2018, the quarter under review) as compared with the corresponding year ago quarter (Q2-2017, prior year quarter). Of its three segments, it was only for CNP that Fox reported growth in revenue and increase in profits as operating income before depreciation and amortisation (OIBDA), for the other two divisions, the company reported decline in revenue combined with an even steeper decrease in segment OIBDA.

    21st Century Fox revenue for the quarter under review increased by 4.6 per cent yoy to USD 8,037 million from USD 7,682 million. OIBDA reduced 27.9 per cent yoy to USD 1,438 million from USD 1,994 million. However, net income attributable to Fox shareholders more than doubled (2.14 times) to USD 1,831 in Q2 2018 from USD 856 million because of a tax benefit of USD 1.84 billion. Quarterly income from continuing operations before income tax benefit of USD 703 million decreased 49.2 per cent yoy from the USD 1,385 million reported in the prior year quarter.

    Commenting on the results, 21st Century Fox executive chairmen Rupert and Lachlan Murdoch said, “We delivered another quarter of solid top-line revenue growth including the further acceleration of gains in global affiliate revenues and despite challenging revenue comparisons for our TV segment. Our results also reflect increased investment behind higher volumes of global sporting events as well as film releases from our studio, which led the industry in Golden Globe awards and Oscar nominations. Looking ahead, we are focused on continuing to deliver value to our shareholders through achieving our near-term growth plans, completing our proposed acquisition of the balance of Sky, obtaining the required approvals for the successful completion of our transaction with Disney and planning for the exciting launch of the new ‘Fox’.”

    CNP

    CNP quarterly segment OIBDA increased by 2.6 per cent as compared with the prior year quarter to USD 1,365 million driven by an 11 per cent revenue rise on higher affiliate, syndication and advertising revenue partially offset by a 15 per cent jump in expenses. The increase in expenses was primarily due to higher global sports programming costs reflecting the inaugural broadcasts of Big Ten college football at FS1 and Argentine Football Association matches at FNG International as well as the impact of contractual increases and more National Basketball Association games at the regional sports networks due to the earlier start of the season and a shift in timing of cricket matches at Star India.  

    Domestic affiliate revenue rose by 12 per cent driven by contractual rate increases across all of 21st Century Fox’s domestic brands. Domestic advertising revenue decreased 3 per cent from the prior year period due to lower general entertainment ratings primarily reflecting a lower volume of original series in the current quarter. Domestic OIBDA contributions increased 1 per cent over the prior year quarter as higher contributions from Fox News were partially offset by lower contributions from the domestic sports networks and National Geographic.

    International affiliate revenue increased 13 per cent driven by rate and subscriber growth at both FNG International and Star. International advertising revenue increased 14 per cent led by double digit growth at Star and continued growth at FNG International. International OIBDA contributions were 8 per cent higher than the prior year quarter as higher contributions at FNG International and Star entertainment networks were partially offset by lower contributions at Star sports networks where higher sports programming costs more than offset the higher reported revenues.

    Television

    Television reported quarterly segment OIBDA of USD 56 million, a decrease of 85 per cent against the USD 376 million reported for the prior year quarter. Quarterly segment revenue was 5.8 per cent lower yoy in Q2 2018 at USD 1,806 million than the USD 1,918 million in the corresponding period in the prior year. 21st Century Fox says that revenue declined as higher retransmission consent revenue was more than offset by lower advertising revenues reflecting lower cyclical political revenues at the TV stations, lower National Football League and World Series ratings and the absence of revenue generated in the prior year quarter by the granting of a licence of one of 21st Century Fox’s television stations to permit the commercial use of adjacent wireless spectrum in that market. The decrease in segment OIBDA was primarily driven by the lower revenues as well as higher contractual sports programming costs at the Fox Broadcast Network, including a higher volume of college football and National Football League games broadcast in the current year quarter.

    Films

    Films generated quarterly segment OIBDA of USD 131 million, a 66.3 per cent decrease from the USD 389 million reported in the prior year quarter. 21st Century Fox says that the OIBDA decrease was driven primarily by higher theatrical releasing costs which more than offset higher theatrical revenues in the quarter under review to support a heavier theatrical film release slate which included Murder on the Orient Express, Ferdinand, The Greatest Showman, The Shape of Water, Three Billboards Outside Ebbing, Missouri and The Post. Partially offsetting these higher expenses were higher television production contributions reflecting higher subscription video-on-demand revenue. Quarterly segment revenue of USD 2,246 million was similar (1 per cent yoy decline) to USD 2,269 million of the year-ago quarter as higher television production revenue offset lower film studio revenue reflecting lower home entertainment and pay and free TV licencing revenue says 21st Century Fox.

    Also Read :

    Disney to buy 21st Century Fox assets for $52.4 billion

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    Disney expected to announce 21 CF buyout tomorrow: media reports

     

     

  • Disney to buy 21st Century Fox assets for $52.4 billion

    Disney to buy 21st Century Fox assets for $52.4 billion

    MUMBAI: It’s a deal that boggles the mind in terms of its scale.  The Mouse House has snared the Fox. After weeks of speculation, the Walt Disney Company and Twenty First Century Fox today announced that they have entered into a definitive agreement for Disney to acquire 21st Century Fox, including the Twentieth Century Fox film and television studios, along with cable and international TV businesses. The price: a much lower than expected and  speculated $52.4 billion in stock (subject to adjustment).  

    The acquisition, says a jointly issued press release, will allow Disney to create more appealing content, build more direct relationships with consumers around the world and deliver a more compelling entertainment experience to consumers wherever and however they choose.

    For the acquisition to happen, 21st Century Fox will immediately have to separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.

    Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold (subject to adjustment for certain tax liabilities).

    The exchange ratio was set based on a 30-day volume weighted average price of Disney stock. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox.

    The acquisition price implies a total equity value of approximately $52.4 billion and a total transaction value of approximately $66.1 billion (in each case based on the stated exchange ratio assuming no adjustment) for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.

    Combining with Disney are 21st Century Fox’s critically acclaimed film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, which together offer diverse and compelling storytelling businesses and are the homes of Avatar, X-Men, Fantastic Four and Deadpool, as well as The Grand Budapest Hotel, Hidden Figures, Gone Girl, The Shape of Water and The Martian—and its storied television creative units, Twentieth Century Fox Television, FX Productions and Fox21, which have brought The Americans, This Is Us, Modern Family, The Simpsons and so many more hit TV series to viewers across the globe. Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group. 

    “The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before,” said The Walt Disney CO chairman & CEO  Bob A. Iger. “We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and we’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings. The deal will also substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world.”

    “We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry,” said 21 st Century Fox executive chairman Rupert Murdoch. “Furthermore, I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”

    At the request of both 21st Century Fox and the Disney board of directors,  Iger has agreed to continue in his position at  The Walt Disney Company through the end of calendar year 2021.

    “When considering this strategic acquisition, it was important to the Board that Bob remain as chairman &  CEO through 2021 to provide the vision and proven leadership required to successfully complete and integrate such a massive, complex undertaking,” said Disney lead independent director Orin C. Smith.  “We share the belief of our counterparts at 21st Century Fox that extending his tenure is in the best interests of our company and our shareholders, and will be critical to Disney’s ability to effectively drive long-term value from this extraordinary acquisition.”

    The acquisition will enable Disney to accelerate its use of innovative technologies, including its BAMTECH platform, to create more ways for its storytellers to entertain and connect directly with audiences while providing more choices for how they consume content. The complementary offerings of each company enhance Disney’s development of films, television programming and related products to provide consumers with a more enjoyable and immersive entertainment experience.

    Bringing on board 21st Century Fox’s entertainment content and capabilities, along with its broad international footprint and a world-class team of managers and storytellers, will allow Disney to further its efforts to provide a more compelling entertainment experience through its direct-to-consumer (DTC) offerings. This transaction will enable Disney’s recently announced Disney and ESPN-branded DTC offerings, as well as Hulu, to create more appealing and engaging experiences, delivering content, entertainment and sports to consumers around the world wherever and however they want to enjoy it.

    The agreement also provides Disney with the opportunity to reunite the X-Men, Fantastic Four and Deadpool with the Marvel family under one roof and create richer, more complex worlds of inter-related characters and stories that audiences have shown they love. The addition of Avatar to its family of films also promises expanded opportunities for consumers to watch and experience storytelling within these extraordinary fantasy worlds. Already, guests at Disney’s Animal Kingdom Park at Walt Disney World Resort can experience the magic of Pandora—The World of Avatar, a new land inspired by the Fox film franchise that opened earlier this year. And through the incredible storytelling of National Geographic—whose mission is to explore and protect our planet and inspire new generations through education initiatives and resources—Disney will be able to offer more ways than ever before to bring kids and families the world and all that is in it.

    Adding 21st Century Fox’s premier international properties enhances Disney’s position as a truly global entertainment company with authentic local production and consumer services across high-growth regions, including a richer array of local, national and global sporting events that ESPN can make available to fans around the world. The transaction boosts Disney’s international revenue mix and exposure.

    Disney’s international reach would greatly expand through the addition of Sky, which serves nearly 23 million households in the UK, Ireland, Germany, Austria and Italy; Fox Networks International, with more than 350 channels in 170 countries; and Star India, which operates 69 channels reaching 720 million viewers a month across India and more than 100 other countries.

    Prior to the close of the transaction, it is anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61 per cent of Sky it doesn’t already own. Sky is one of Europe’s most successful pay television and creative enterprises with innovative and high-quality direct-to-consumer platforms, resonant brands and a strong and respected leadership team. 21st Century Fox remains fully committed to completing the current Sky offer and anticipates that, subject to the necessary regulatory consents, the transaction will close by June 30, 2018. Assuming 21st Century Fox completes its acquisition of Sky prior to closing of the transaction, The Walt Disney Company would assume full ownership of Sky, including the assumption of its outstanding debt, upon closing.

    The acquisition is expected to yield at least $2 billion in cost savings from efficiencies realized through the combination of businesses, and to be accretive to earnings before the impact of purchase accounting for the second fiscal year after the close of the transaction.  

    The terms of the transaction call for Disney to issue approximately 515 million new shares to 21st Century Fox shareholders, representing approximately a 25% stake in Disney on a pro forma basis. The per share consideration is subject to adjustment for certain tax liabilities arising from the spinoff and other transactions related to the acquisition. The initial exchange ratio of 0.2745 Disney shares for each 21st Century Fox share was set based on an estimate of such tax liabilities to be covered by an $8.5 billion cash dividend to 21st Century Fox from the company to be spun off. The exchange ratio will be adjusted immediately prior to closing of the acquisition based on an updated estimate of such tax liabilities. Such adjustment could increase or decrease the exchange ratio, depending upon whether the final estimate is lower or higher, respectively, than the initial estimate. However, if the final estimate of the tax liabilities is lower than the initial estimate, the first $2 billion of that adjustment will instead be made by net reduction in the amount of the cash dividend to 21st Century Fox from the company to be spun off. The amount of such tax liabilities will depend upon several factors, including tax rates in effect at the time of closing as well as the value of the company to be spun off.

    The boards of the two companies  have approved the transaction, which is subject to shareholder approval by 21st Century Fox and Disney shareholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act, a number of other non-United States merger and other regulatory reviews, and other customary closing conditions.

    Also read:

    Disney expected to announce 21 CF buyout tomorrow: media reports

    Comment: The rise and rise of Uday Shankar

  • Comment: The rise and rise of Uday Shankar

    Comment: The rise and rise of Uday Shankar

    MUMBAI: From not having enough money to afford even a TV set in Delhi in 1991 when he was a newspaper reporter to heading Star India, one of the most admired Indian media and entertainment companies, for a decade to now being appointed as 21st Century Fox Asia president, it has been quite a journey for Uday Shankar. A well-deserved and rewarding one at that.

    Today, Shankar is one of the few professionals from India to get region-wide responsibility for a global media powerhouse. Executives such as Man Jit Singh, who heads Sony Pictures Home Entertainment globally, and Bedi A Singh, who was News Corp CFO for a long time, have preceded him but both are Indians who rose up the ranks in the US.

    Shankar has, however, earned his stripes growing the Star India business, which in the first quarter had an EBDITA of $100 million and is on course to hit $500 million in 2017-2018 (in the words of 21st Century Fox (21CF) chairman James Murdoch). The 2020 EBDITA target, as spelt out by 21CF, is twice that, and the Murdochs say it is well on course to be achieved.

    When he was handpicked by the then News Corp COO Peter Chernin to take over Star in October 2007 (some say on the advice of the then outgoing company head in India), Shankar knew very little about the entertainment business. All his experience had been in news–whether print or television. He had had stints with several print media publications (his first was The Times of India around 1990) as a political correspondent and last was as one of the founders of environment magazine Down To Earth before the TV news bug bit him.

    Shankar took to the TV medium with ferocity—doing stints at Zee TV’s news channel as a news producer, the Hindustan Times promoted Home TV (it shut down quickly), production house Sri Adhikari Brothers, Sahara TV, and then India Today group’s Aaj Tak and Headlines Today, two channels he helped stabilise and grow over the next six seven years. His talent for being a journalist who got things done did not go unnoticed and he was asked to lead Star News, a joint venture with Kolkata-based ABP group, after CEO Ravina Raj Kohli departed.

    It was at Star News that he blossomed as an executive—a TV exec to be precise—and caught the attention of Chernin and the Murdochs. The rest, as they say, is history.

    Today, under his leadership, the Star network has expanded into regional language channels and produces close to 17,000 hours of content each year in eight languages. The route it has taken to get there: acquisition of the South India-based Maa network, Asianet and via launch of channels such as the Bengali-language Star Jalsa.

    A journalist with little entertainment content creation experience when he was appointed, Shankar has steered Star into creating TV content that has been path breaking over the past 10 years, dealing with social issues, apart from helping position it as a network that produces classy shows but with a social purpose. So much so that Star India shows command an advertising premium even if the channel is not topping viewership ratings. Even on the affiliate revenues front, Shankar has played hardball.

    But one of the boldest moves taken by Star under him—some critics may choose to describe it as foolhardy—was to take on broadcast and telecom regulator TRAI late 2016 when Star India and its affiliate Vijay TV challenged in court the regulator’s jurisdiction over matters relating to copyrights, which effectively has stalled implementation of a new tariff and inter-connect regime announced by TRAI in October 2016. The case is still pending a final verdict in Madras High Court till the time of writing this piece.

    Amongst the early movers in the OTT space, Shankar has made Star invest big in customer acquisition and pushed its digital platform Hotstar CEO Ajit Mohan to go out and not only acquire new business, but also devise a distribution strategy that could be sliced and diced as per needs of the geographical markets. So, Hotstar’s distribution and subscription strategy for the US and Canada market, heavily subscription revenue-led, could be quite different from that pushed in India, where making available content practically free to subscriber initially is aimed at hooking the viewer before he’s seduced to the pay model.

    Though Shankar is not known to be a great fan of gambling—even during Diwali when in India playing cards with cash is considered auspicious or for good `shagun’—he gambled big on the Indian Premier League’s (IPL) global rights for five years. Star not only played smart, outbidding incumbent rights holder SPN India and some global digital players sniffing at commercially viable Indian cricket rights, but also raised the bar to clinch the hand with a bet of $ 2.55 billion. Raising the stakes flattened competition.

    Under Shankar, Star has also ploughed huge investments into creating and acquiring sports properties such as the Pro Kabaddi League, the BCCI national cricket domestic rights, the domestic soccer league ISL in collaboration with Reliance Industries, table tennis, badminton, and many others sports.

    The recent promotion of Shankar means he has won the confidence of the Murdochs and the boards of News Corp and 21CF to replicate in Asia what he has done in India, long referred to as a jewel in the crown of the Murdoch media empire. While 21CF has done well in markets such as Taiwan, Japan, Hong Kong, Singapore, Malaysia, and South Korea, scale has been something that’s been missing. Shankar is expected now start building that.

    By promoting him to head Asia, 21 CF has also ensured that if a deal with Disney does happen (media reports emanating from all parts of globe say the approx USD 60 billion deal could happen sooner rather than later), it will be—very well could be—Shankar who will be scripting the new Asian story. Currently, Disney has two Asian heads: one for south east and south Asia and the other for north Asia. With him being designated as the boss, the reporting lines too could change with Mahesh Samat reporting to Shankar.

    How has Shankar managed this rags-to-riches story in the cut-throat corporate world of global media? Shankar himself gives a hint. Casually leaning against the main exit to the executive floor at level 37 in the South Parel office of Star, housing the leadership team, while escorting out a couple of senior editors of Indiantelevision.com after an interview in September, he was asked what made him tick. The recorder was off and the interview had ended, but what he said was revealing.

    According to Shankar, though he considers he has miles yet to travel (wherein he’d continue reading thought-provoking books like Yuval Noah Harari’s Sapiens: A Brief History of Humankind), his satisfaction comes from the fact that he has managed to assemble a string of high-calibre professionals as heads of various Star businesses who at least specialise in or know better one thing extra about the business than the chief. “This gives me great satisfaction as I know the business is in safe hands,” he said with a poker face.

    In the end, one of his mentors, Siddhartha Ray (Delhiwallahs say he’s one of the few friend-philosopher-guides of Shankar), who also happens to be the first GM of Star TV in India in the early 1990s, aptly summed up the X factor: “What makes Uday so successful? He’s a quick learner, good man-manager and an adept environment manager.”

    At Indiantelevision.com, we would wish Uday Shankar more wind beneath his wings so that he can soar higher.

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  • Uday Shankar becomes president of 21st Century Fox, Asia

    Uday Shankar becomes president of 21st Century Fox, Asia

    Mumbai: Star India chairman and CEO Uday Shankar has been elevated to the position of president, 21st Century Fox (21CF), Asia, effective immediately.

    According to 21CF, in his new role, Shankar will lead the company’s video businesses across all of Asia, including Star India and Fox Networks Group, and work closely with 21CF leadership on key strategic initiatives in the region. He will continue to serve as chairman and CEO of Star India, a key driver of 21CF’s growth and one of India’s largest media and entertainment companies. Fox Networks Group Asia president Zubin Gandevia, who used to earlier report into 21st Century Fox president Peter Rice, will continue to oversee video brands across 14 markets and now report to Uday  under this realigned regional structure. 21CF’s film business in Asia will continue to report directly to 20th Century Fox Film chairman & CEO Stacey Snider.

    “Uday’s new role will enhance our strategic focus across all of Asia and enable us to further capture opportunities, building on the transformation Star India has driven in our most important growth market,” said Fox executive chairman Lachlan Murdoch and CEO James Murdoch in a joint statement.

    “Under Uday’s leadership, our India business has firmly established itself as a world-class asset with durable businesses across entertainment, sports, satellite distribution and OTT. His strategic vision has put 21CF at the forefront of content and distribution in one of the world’s fastest growing economies, and we are very fortunate to benefit from Uday’s expanded leadership at a global level,” they said.

  • De-mon contributes to lower international ad revenue at 21st Century Fox

    BENGALURU: Rupert Murdoch’s 21st Century Fox (TFC-Fox) reported five per cent decline in net income attributable to TFC-Fox stockholders (net income) for the quarter ending 31 March 2017 (Q3-17, current quarter) as compared to the corresponding periods of the previous fiscal.  The company’s Q3-17 net income was $799 million as compared to $841 million in Q3-16. As reported by us earlier, (21st Century Fox outlook on Star bullish despite $30 million DeMon Hit), TFC-Fox CFO John Nallen, in conversation with analysts had admitted that Star too ‘got affected’ from last quarter to first quarter of 2017 to the extent of $30 million.

    Demonetisation in India partially contributed to the drop in revenue in Q3-17 going by some statements in TFC-Fox’s earnings release for Q3-17. The company’s press release says: “International advertising revenue decreased 18 percent from lower advertising revenues at Star India due to the absence of the prior year broadcast of the ICC Cricket World Twenty20 matches and the effect of the Indian government demonetization initiatives on the general advertising market. Quarterly OIBDA at the international cable channels increased 44 percent from the prior year quarter primarily reflecting lower sports programming costs at STAR India and higher contributions from Fox Networks Group International (FNGI).”

    Advertising revenue in the current quarter increased 15.5 percent to $2,203 million from $1,907 million. Affiliate Fees in Q3-17 increased 7.5 percent to $3,160 million from $2,939 million in the corresponding year ago quarter. Content revenue in Q3-17 declined 9.2 percent to $2,078 million from $2,288 million in Q3-16. Other revenue increased 30.9 percent to $123 million from $94 million.

    Overall TFC-Fox revenue in the current quarter increased 4.6 percent to $7,564 million as compared to $7,228 million in Q3-16. Total operating income before depreciation and amortisation (OIBDA) for the quarter increased 3 percent to $1,938 million from $1,881 million in the year ago quarter.

    Commenting on the results, TFC-Fox executive chairmen Rupert and Lachlan Murdoch said, “We delivered a quarter marked by operational momentum and strong domestic affiliate fee growth. We continue to demonstrate our ability to capture opportunities to grow distribution of our domestic portfolio of video brands, whether through established MVPD partners or new digital entrants such as Hulu’s recently launched live television service. We made progress in the quarter against our key strategic priorities, exemplified by our creative successes across screens, from theatrical releases Logan and Hidden Figures to new FX debuts of Legion, Feud and Taboo. Our proposed combination with Sky, which was recently approved unconditionally by the European Commission, will advance another of our strategic priorities, driving innovation for customers. We remain confident the proposed transaction will be approved by the end of the calendar year following a thorough review process.”

    Three segments contribute to TFC-Fox numbers: Cable Network Programming (Star India is a part of Cable Network Programming); Television; and Filmed Entertainment.

    Cable Network Programming

    Cable Network Programming quarterly segment OIBDA increased 5 percent to $1.45 billion and revenue increased 2 percent to $4.02 billion.

    Expenses were consistent with the prior year quarter as higher entertainment programming and marketing costs at FX Networks and National Geographic Channels, higher National Association for Stock Car Auto Racing (NASCAR) rights costs at FOX Sports 1 (FS1) and higher National Basketball Association (NBA) rights costs at the regional sports networks (RSNs) wereoffset by lower sports rights costs at STAR India due to the absence of the prior year broadcast of the International Cricket Council (ICC) Cricket World Twenty20 matches.

    Domestic affiliate revenue increased 8 percent reflecting continued contractual rate increases led by Fox News, FS1, the RSNs and FX Networks. Domestic advertising revenue was flat over the prior year period as the impact of higher ratings at Fox News and FS1 was offset by lower revenues at the National Geographic Partners businesses. Domestic OIBDA contributions were equal to the prior year quarter as higher contributions from Fox News were offset by lower contributions from FX Networks and National Geographic Channels.

    International affiliate revenue increased 5 percent driven by local currency growth of 7 percent partially offset by negative currency impacts from the strengthened U.S. dollar. International advertising revenue decreased 18 percent from lower advertising revenues at Star India due to the absence of the prior year broadcast of the ICC Cricket World Twenty20 matches and the effect of the Indian government demonetization initiatives on the general advertising market. Quarterly OIBDA at the international cable channels increased 44 percent from the prior year quarter primarily reflecting lower sports programming costs at STAR India and higher contributions from Fox Networks Group International.

    TELEVISION

    Television reported quarterly segment OIBDA of $190 million, an increase of 52 percent as compared to the prior year quarter driven by 30 percent revenue growth reflecting increased advertising revenue and continued growth of retransmission consent revenues.

    Quarterly advertising revenues grew 39 percent from the corresponding period of the prior year driven by the broadcast of Super Bowl LI and the inclusion of one additional National Football League divisional playoff game, partially offset by the impact from lower general entertainment ratings, led by the absence of American Idol, which concluded its final season in the prior year. The segment results also included higher sports programming costs associated with the broadcast of Super Bowl LI and the additional National Football League divisional playoff game.

    FILMED ENTERTAINMENT

    Filmed Entertainment generated quarterly segment OIBDA of $373 million, a $97 million decrease from the $470 million reported in the same period a year-ago. The OIBDA decrease in the current quarter was driven primarily by lower film studio contributions reflecting difficult comparisons to last year’s strong worldwide theatrical performance of Deadpool and the home entertainment performance of The Martian, partially offset by higher television production contributions from higher subscription video-on demand revenues led by the licensing of The People v. O.J. Simpson: American Crime Story and higher network revenue.

    Quarterly segment revenues decreased $65 million to $2.26 billion, primarily reflecting lower worldwide theatrical and home entertainment revenues partially offset by higher television production revenues. Quarterly results also included the successful theatrical performances of both Logan and Hidden Figures, which have grossed approximately $600 million and $230 million in worldwide box office, respectively.

  • FOX News appoints Marianne Gambelli president of ad sales

    MUMBAI: FOX News has appointed Marianne Gambelli to President, Advertising Sales, announced Rupert Murdoch, Executive Chairman, 21st Century Fox. Gambelli will oversee advertising sales for both FOX News Channel (FNC) and FOX Business Network (FBN). She will begin her new role on 22 May.

    In making the announcement, Murdoch said, “We are delighted to add Marianne to our executive management team. Her reputation for client management, along with her ability to monetize investments, seek out new and emerging technologies and create innovative media partnerships has made her a leader in the industry.”

    Gambelli added, “I’m proud to be representing the powerful FOX News brand and I am beyond excited to lead a very talented sales team to capitalize on this new era in news.”

    Prior to joining FOX News, Gambelli served as Chief Investment Officer at Horizon Media where she managed their $7 billion investment portfolio. There she was responsible for a team of over 350 general market investment specialists and actively developed key new business acquisitions across top tier brands. She joined the company in 2012 from NBC Universal, where she most recently held the title of President of Sales and Marketing. During her 22 year tenure at NBC, Gambelli oversaw partnerships and strategy across NBC’s News, Sports and Entertainment brands, optimizing their $7 billion in media investments.

    In 2012, Advertising Age named Gambelli as one of the 100 Most Influential Women in Advertising and in 2002, she was honored as part of the American Advertising Women to Watch. While at NBC Universal, she was a member of GE’s Women’s Network and served as a Division NBC Universal Leader. She was also a Leader in the company’s Commercial Leadership Program.

    A graduate of Pace University with a Bachelor of Business degree in Marketing, Gambelli began her career on the agency side, working for Grey Advertising and Backer Speilvogel Bates. In 2016, she was awarded an Honorary Degree from Pace Pleasantville Chapter of Beta Gamma Sigma. She is currently a Board Member of the International Radio and Television Society (IRTS) Foundation.

    FOX News Channel (FNC) is a 24-hour all-encompassing news service dedicated to delivering breaking news as well as political and business news. The number one network in cable, FNC has been the most-watched television news channel for 15 years and according to a Suffolk University/USA Today poll, is the most-trusted television news source in the country. Owned by 21st Century Fox, FNC is available in 90 million homes and dominates the cable news landscape, routinely notching the top ten programs in the genre.

  • Bedi, old-time Murdoch hand, departs News Corp

    MUMBAI: News Corp has announced that Bedi A. Singh will be departing as the chief financial officer effective 1 March. Susan Panuccio, currently the chief financial officer of News Corp Australia, will become the new CFO.

    Following his departure, Singh intends to pursue new opportunities; however he has agreed to serve as a senior advisor to News Corp on its digital property interests in India, reporting to Robert Thomson, Chief Executive, and will also join the advisory board of Move, Inc., which operates realtor.com®.

    During Singh’s time at News Corp, the company’s significant acquisitions included Move, Inc., operator of realtor.com®; Harlequin Enterprises; Wireless Group, operator of talkSPORT; and tech-startups Storyful, Unruly and Checkout 51. News Corp also made strategic investments in India, including the acquisition of VCCircle and BigDecisions.com and an investment in PropTiger.com, which recently came together with Housing.com to become the largest digital real estate company in India.

    “I asked Bedi to come back in 2012 to help get the new News Corp up and running, and he’s done a great job doing just that,” said executive chairman Rupert Murdoch. “Through his astute financial management of key acquisitions and divestitures, and with the prudent institution of cost controls across the businesses, Bedi has helped News Corp weather the challenges of this era better than its peers, and put it on firm footing for long-term growth and profitability.”

    “I am also pleased to announce Susan Panuccio as our new CFO. Her superb work at News Corp Australia makes her the ideal successor to Bedi, and we look forward to her joining us at headquarters as we take on new opportunities in the years ahead,” said Murdoch.

    Singh rejoined News Corporation in 2012 and was named CFO as part of the new leadership team of News Corp in June, 2013. His previous work with News Corporation included senior finance roles at News International (now News UK) and 20th Century Fox (now 21st Century Fox). He also served as President, Finance and Administration & CFO for MGM Studios and as CFO at Gemstar-TV Guide, Novartis Pharmaceuticals and Sony Pictures Entertainment.

    “We said at our rebirth in 2013, when Bedi was recruited back into the News Corp fold, that we would be relentlessly global and digital in our focus, and Bedi has certainly helped us achieve that goal,” said Thomson. “The diversity of our business, particularly with the significant expansion into digital real estate, aggressive transition to digital across our mastheads and strategic tech acquisitions, have made us a stronger company today. That success could not have been achieved without Bedi’s financial stewardship.”

    “I have had the professional pleasure of working closely with Susan Panuccio, and she’s the right person to drive the next important phase of growth at News Corp,” said Thomson. “Susan is rigorous in her work and strategic in her thinking.”

    “From the outset nearly four years ago, all of us at News Corp have had the mindset of a start-up, moving quickly to seize the moment and expand both digitally and globally. That has made my time here both exciting and fulfilling,” said Singh. “Helping get the new News Corp off the ground and well-positioned for future growth is something I am immensely proud of, and I’m grateful to Rupert and Robert for the opportunity to work with them and everyone at News Corp to set the company on such a strong strategic course.”

    Panuccio has been the CFO for News Corp Australia since September, 2013. She previously served at News International in several positions, including CFO. She began her career as a Senior Accountant at KPMG Australia.

    “I am looking forward to the next exciting challenge in my career at News Corp, having worked for the company in both the UK and Australia. I am delighted to have been given this opportunity to work with our talented executive teams across the businesses,” said Panuccio.

    Also Read:

    http://www.indiantelevision.com/television/tv-channels/people/cheesbrough-new-twenty-first-century-fox-cto-161101

    http://www.indiantelevision.com/mam/marketing/mam/news-corps-bigdecisionscom-nnveils-money-talks-160701