Fox Reports Third Quarter Results.Business Editors
NEW YORK--(BUSINESS WIRE)--May 9, 2001
See: New York Stock Exchange : FOX)
- Strong video and DVD sales from both new and library titles more than offset new release losses and marketing spending, generating Filmed Entertainment EBITDA of $63 million. - Fox Broadcasting Company viewership among adults 18-49 up more than seven percent season to date. EBITDA for the network up year over year despite difficult advertising environment. - Television Stations increase market share versus a year ago; financial results decline reflecting the current weak advertising environment. - Fox News Channel posts its second consecutive quarter of positive EBITDA driving Cable Network Programming EBITDA up 25 percent over prior year; consistently topping CNN in both primetime and 24-hour ratings; subscribers now exceed 64 million.
The Fox Entertainment Group (NYSE: FOX) today reported third quarter operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) of $218 million on revenues of $2.0 billion, as compared to prior year third quarter EBITDA of $262 million and revenues of $1.9 billion. Overall EBITDA reflects higher contributions from the Company's Cable Network Programming and Television Broadcast Network segments which were more than offset by a disappointing quarter at the domestic box office and a soft advertising environment.
Equity in losses of affiliates increased $15 million in the third quarter compared to a year ago due to higher losses at Fox Family Worldwide and at Fox Sports Cable Networks affiliates, as well as the launch of the National Geographic channels.
During the quarter the Company sold its interest in Home Team Sports, a regional sports network In the United States of America, a Regional Sports Network, or RSN, is a cable television station that presents sports programming to a local market. The most important programming on an RSN consists of live broadcasts of professional and college sporting events, as those games , to Comcast. This transaction resulted in a gain of approximately $40 million, which is reflected within Other income.
The decline in operating income in conjunction with higher equity in losses of affiliates resulted in a net loss of $9 million ($0.01 loss per share) for the quarter as compared to the prior year's net income of $19 million ($0.03 per share).
Consolidated EBITDA 3 Months Ended 9 Months Ended March 31, March 31, 2001 2000 2001 2000 ------ ------ ------ ------ US $ Millions US $ Millions Filmed Entertainment $ 63 $ 111 $ 333 $ 217 Television Stations 122 133 523 552 Television Broadcast Network 1 (5) (90) (1) Other Television Businesses (3) (5) (5) (5) Cable Network Programming 35 28 141 98 ------ ------ ------ ------ Consolidated EBITDA $ 218 $ 262 $ 902 $ 861 ====== ====== ====== ======
Commenting on the results, Chairman and Chief Executive Officer Rupert Murdoch said:
"The Fox Entertainment Group achieved several notable successes during its third fiscal quarter. Fox News Channel, now the number one all-news channel in the country, enjoyed its second straight quarter of profitability; our owned and operated television stations continued to grow market share; and the FOX Network continued is dramatic turnaround from a year ago, maintaining sharp ratings gains over last year and over its competitors this season. We are greatly encouraged by our businesses' ability to withstand the soft domestic advertising market, and we are as confident as ever that our strong brands, compelling products and distribution network ideally position us for sustained growth."
The Filmed Entertainment segment reported third quarter EBITDA of $63 million, compared to $111 million in the same period a year ago. Current quarter results primarily reflect the continued strength of worldwide library sales, incremental DVD DVD: see digital versatile disc.
in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. contributions and the solid international video and DVD performances of X-Men and Me, Myself & Irene. In addition, operating results included significant contributions from Cast Away, which continued its successful run at the box office, generating worldwide theatrical receipts to date of over $420 million. These contributions were partially offset by losses from the disappointing box office performances of Monkeybone and Say It Isn't So and new release marketing spending.
Twentieth Century Fox Television (TCFTV) solidified its leadership position as the top supplier of primetime shows to the networks with strong ratings from both new and established shows. TCFTV has begun to capitalize on Cap´i`tal`ize on`
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this success as evidenced by the significant license fee increases recently negotiated with ABC ABC
in full American Broadcasting Co.
Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. for The Practice and Dharma dharma (där`mə). In Hinduism, dharma is the doctrine of the religious and moral rights and duties of each individual; it generally refers to religious duty, but may also mean social order, right conduct, or simply virtue. & Greg and with UPN UPN User Principal Name (Microsoft Windows 2000)
UPN United Paramount Network
UPN Unión del Pueblo Navarro (Navarrese People Union)
UPN Umgekehrte Polnische Notation for Buffy the Vampire Slayer. In addition, the Company is positioned to reap the rewards from the syndication pipeline which will begin adding substantial contributions in fiscal 2002.
The television businesses, which include Television Stations, the Television Broadcast Network and Other Television Businesses, reported aggregate EBITDA of $120 million, which is in line with the same period a year ago. Current year results reflect improved results at the Fox Broadcasting Company (FBC See fully buzzword compliant. ) offset by a decline in television station contributions.
At FBC, lower series programming costs combined with a seven percent increase in season-to-date ratings among adults 18-49 improved operating results compared to a year ago. Reduced programming costs were the result of replacing older, more expensive shows such as Party of Five and Beverly Hills 90210 with less expensive, first year programming. In addition, FBC had a much higher success rate in the current year with its new series such as Boston Public, Dark Angel and Grounded For Life compared to last year, when a number of new series were cancelled. These improvements were partially offset by a weak advertising environment and higher sports programming and marketing costs related to broadcasting NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. races.
EBITDA at the Fox Television Stations The Fox Television Stations (FTS) are a group of television stations located throughout the United States which are owned-and-operated by the Fox Broadcasting Company. FTS also produces the Fox program COPS. (FTS FTS
facteur thymique sérique. ) declined eight percent compared to a year ago as a result of decreased advertising in nearly every major category, partially offset by cost savings including lower promotional spending. Despite this softness, FTS gained nearly one percentage point in overall market share due to the strong performance of NASCAR telecasts and improved prime time ratings at the FOX network.
CABLE NETWORK PROGRAMMING
Cable Network Programming, comprising the Fox News Channel (FNC FNC - Federal Networking Council ), Fox Sports Networks (including the Regional Sports Networks (RSNs) and the FX Channel (FX)), the Los Angeles Dodgers "Dodgers" and "Brooklyn Dodgers" redirect here. For the American football team, see Brooklyn Dodgers (football). For the Eastern Basketball Association team, see Brooklyn Dodgers (basketball). and other cable-related businesses, reported third quarter EBITDA of $35 million. This 25 percent increase from a year ago primarily reflects the improved earnings results at the Fox News Channel and FX partially offset by reduced contributions at the RSNs.
Fox News Channel generated positive EBITDA in the third quarter as compared to an EBITDA loss in the same period a year ago. These gains were the result of higher ratings, which drove advertising sales, as well as additional affiliate revenue from a subscriber base increase of 17 million versus last year. FNC's primetime and 24-hour ratings both grew by over 120 percent, compared to the same quarter a year ago - by far the largest ratings increase among all news networks. In addition, FNC beat CNN CNN
or Cable News Network
Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. by 49 percent in primetime and 33 percent in total day ratings during the quarter in homes where the two news networks competed directly.
Fox Sports Networks' EBITDA declined during the quarter, primarily as a result of higher programming costs as well as the impact of the soft advertising market. An increase in cable and DTH (Direct-To-Home) Typically refers to satellite TV broadcasting directly to a dish antenna on the roof of a house. See DBS. subscribers as well as higher RSN RSN - Real Soon Now affiliate rates, negotiated with MSOs in the past year, partially offset increased rights fees and production expenses associated with a greater number of NBA NBA
1. National Basketball Association
2. National Boxing Association
NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= and NHL NHL Non-Hodgkin's lymphoma, see there telecasts. FX reported significant affiliate revenue gains as its subscriber base increased 13 million from a year ago to 60 million. These gains were partially offset by higher programming costs associated with the first season of telecasting NASCAR, which has delivered strong ratings and is poised to contribute significant advertising revenues.