Twenty-First Century Fox Inc Class A (NASDAQ: FOXA) stock entered in green zone post a weak start today delivering over 0.4% returns (as of 12:01 PM GMT-4 on 9th August, 2018; Source: Google finance). The company has reported better than expected results for the fourth quarter 2018 due to the popularity of edgy superhero movie “Deadpool 2” and as the company’s cable unit earned higher fees from distributors. The result showed most of FOXA’s businesses are performing above expectations. During the fourth quarter 2018, net income attributable to shareholders rose to $920 million from $476 million a year earlier.
FOXA in the fourth quarter of FY 18 has reported the adjusted earnings per share of 57 cents, beating the analysts’ estimates for the adjusted earnings per share of 54 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 17.6 percent to $7.94 billion in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $7.75 billion.
Moreover, during the fourth quarter 2018, FOXA’s filmed entertainment unit posted revenue growth of about 27 percent to $2.3 billion, driven largely by the success of “Deadpool 2. The film, distributed by Fox’s Twentieth Century Fox studio, has so far grossed $730 million worldwide at the box office. The revenue from the cable division rose 13.8 percent and accounted for more than half of overall revenue. Further, affiliate fees, grew 12.3 percent to $3.57 billion due to growth of subscriber in both digital (multi-channel video programming distributors) services and the younger under-penetrated channels. The Indian Premier League also drove a 55 percent surge in international advertising revenue.
Meanwhile, FOXA has planned to sell the bulk of its film and TV assets to Walt Disney Co in a $71 billion deal. The cash-and-stock transaction has already got approval from U.S. regulators, but awaits the green light from more than a dozen countries, including China, Russia and regulators from the European Union. The company is on track to close the deal in the first half of 2019, while reiterating that news and live sports will underpin the profile of the new FOXA. In addition, FOXA is also trying to buy the 61 percent of British pay-TV group Sky which it does not already own. The company has triggered a 46-day deadline to raise its bid for Sky in a battle with Comcast. The company now has until Sept. 22 to trump Comcast’s offer for Sky