21st Century Fox loss shrinks after company split

Published on NewsOK Modified: August 6, 2013 at 6:24 pm •  Published: August 6, 2013
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Revenue from local Fox broadcast TV stations was flat at $1.10 billion, as higher fees from distributors were offset by lower advertising revenue due to smaller audiences for "American Idol" and "X-Factor."

Movie studio revenue grew 3 percent to $2.04 billion, while revenue from its satellite TV business in Europe rose 45 percent to $1.38 billion, mainly because it included all of Sky Deutschland's results after taking a majority stake.

The company said it expects operating income, excluding one-time items, to rise by a "high single- to low double-digit" percentage in the fiscal year through June 2014 from $6.26 billion in the year just ended.

Growth would be faster except that the company expects to spend more than $200 million launching several new channels, including its new national sports network, Fox Sports 1, next week. The company is hoping to build the network into a rival to Disney's flagship, ESPN.

The company also plans to spend another $150 million to bolster its Fox broadcast network to shore up some of the decline caused by falling ratings for "Idol." The broadcast network is juggling its judges panel and retooling the show for its upcoming 13th season.

"It's a fact 'Idol' did not deliver as we hoped," Chief Operating Officer Chase Carey said on a conference call with analysts. "It's still a profitable show and a Top 5 show. We think there's an opportunity to re-emphasize that."