Rupert Murdoch’s 21st Century Fox, formerly known as News Corp, has boosted its annual profit but warns the cost of launching its US TV sports networks and currency effects will impact the year ahead.
“Overall, our businesses are well positioned for continued growth,” John Nallen, 21st Century Fox’s chief financial officer, told analysts and reporters.
The company’s profit for the 2012/13 financial year was $US6.82 billion ($A7.66 billion), more than double the $US3.18 billion in the previous year.
The result was boosted by $US3.76 billion ($A4.20 billion) in gains on the company’s purchase of TV assets Sky Deutschland and ESPN Star Sports, and the sale of its stake in NDS Group.
In June, Murdoch’s global media empire News Corp split its broadcast and publishing operations into separate companies.
The profitable pay TV, broadcast TV and film operations became 21st Century Fox and the company’s Australian, US and UK newspapers, book publishing arm and Australian pay TV business became New News Corp.
Very little information was provided on the performance of the company’s publishing and Australian assets during 2012/13.
What is now New News Corp was classified as discontinued operations in 21st Century Fox’s accounts, and those operations made a profit of $US277 million in the year to June 30.
21st Century Fox’s overall result was built on annual revenues of $US27.68 billion, a 10 per cent increase on 2011/12.
Murdoch, who did not attend the company’s market briefing, said in a statement that with the company split complete, 21st Century Fox “not only delivered strong earnings and revenue growth led by our channels businesses, we also positioned ourselves for future success with strategic investments in our global channels businesses”.
Mr Nallen said 21st Century Fox’s overall growth in fiscal 2014 would be driven by the company’s cable TV segment, but its filmed entertainment business would “be down a touch” on the past year.
“In 2014, our growth will be impacted by several strategic initiatives, most notably the launch of sport networks here in the US and Asia as well as the launch of (cable TV network) FXX,” Nallen said.
“Additionally, we are expecting adverse currency effects to impact 2014 growth, principally from Latin American currencies and the Indian rupee.”
The company’s locally listed shares gained 29 cents to $35.11, while New News Corp shares added 12.5 cents to $18.095.
