Twenty-first Century Fox reported an adjusted revenue for the company that was lower than had been expected as fewer than usual major movies released pulled pull down the studio business and a strong U.S. dollar reduced the income valued from markets overseas.
Fox’s stock was down 2.6% during trading prior to the opening bell after news of the quarterly results were released, the first under James Murdoch the new CEO who took the reins from Rupert his father July 1.
Revenue from the film studio business of Fox, which represents close to one third of the company’s total revenue, dropped 28% to just over $1.79 billion during the first three months of its fiscal year compared to the same period last year.
The drop reflects a poor performance of The Fantastic Four its superhero movie and the difficult comparisons to the same period one year ago, that includes hits like Rio 2 and Dawn of the Planet of the Apes.
The fall reflects a loss of revenue from its Endemol Shine Group that was sold and the strong dollar.
Fox earns more than one third of its complete revenue overseas.
However, the cable network programming arm of the company, which includes the likes of FX Network, Fox News and National Geographic, had a strong quarter. Revenue for that business was up 7.2% to end the quarter at $3.46 billion, which was boosted by the first debate of the Republican candidates for president that drew 24 million viewers, which set a record.
Net income that was attributable to Fox shareholders was down to $675 million equal to 34 cents a share, during the quarter ending September 30 from last years’ $1.04 billion equal to 47 cents a share.
The numbers from one year ago included the direct broadcast Fox satellite television business, which also has been sold since.
Making adjustments for that sale, revenue at Fox was down 6.3% to end the quarter at $6.08 billion with profit per share of 38 cents.
On average analysts were expecting 37 cents a share profit with revenue reaching $6.42 billion.