Media company Twenty-First Century Fox reported better than expected second-quarter profit. Higher costs for sports programs and film marketing, however, have limited the growth. Its shares fell more than 4 percent to 25.85 dollars in the trade after the closing of markets, Reuters reported.
Managers tried to dispel concerns about the future of the Fox News Channel after the departure of longtime leader Roger Ailes.
“Throughout this process. We have moved quickly and decisively to protect the business, to protect its employees, and to protect the unique and important voice Fox News broadcasts,” said the Executive Chairman of 21st Century Fox Lachlan Murdoch during a conference call with analysts.
Ailes quit because of allegations of sexual harassment that he denies.
Strong results at Fox News have supported by 9.9% the revenue of the cable TV division of the company for the quarter. They have contributed to more than half of the total revenues of the company. Sales of local advertising in the cable business rose by 13%.
Higher costs for sports programs and marketing of films have limited profits. Some big film names haven’t satisfied the expectations, said CEO James Murdoch. “Clearly, we have work to do in the film studio,” he added.
Revenue from fees increased by 6% during the quarter and is expected to continue to grow at a low double-digit annual rate, said Chief Financial Officer John Nallen.
The total net profit jumped to $567 million, or 30 cents a share, from $87 million, or 4 cents a share, a year ago, helped by tax breaks.
Without one-off effects, Fox’s profit amounted to 38 cents per share, which is slightly above the average estimate of analysts of 37 cents per share.
Adjusted revenue of the company increased by $7.1% to 6.65 billion.