Late Monday afternoon, Twenty-First Century Fox posted a profit for the quarter that beat expectations of analysts as its cable and television units were helped from televising the World Series and its channel for cable news enjoyed good ratings during the presidential campaign in the U.S.
However, the parent company for Fox News as well as FX that is controlled by Rupert Murdoch posted revenue during the second quarter that came up short of analyst expectations. Fox shares were slightly down in trading after hours.
The results from the second quarter demonstrate the importance of live sports and news for Fox and other media companies.
Fox generated ad revenues that were higher for its telecast of the World Series, higher revenue from advertising during the presidential election and higher revenue from affiliates.
On a call to analysts, Lachlan Murdoch the Executive Chairman said the Super Bowl, which two days ago, Fox hosts, marked the company’s first revenue day of $500 million.
He said that he is expecting growth in affiliate revenue to accelerate during the second six months of this year.
Revenue at Fox for its cable division, which has Fox channels amongst others, increased by 7.1% to end the quarter at $3.96 billion.
Domestic ad sales in its cable business increased 12% during the quarter, said company officials.
Fox News ended 2016 as the cable network in the U.S. that was most watched during prime time for just the first time since it begin telecasting, according to December’s Nielsen ratings, as the victory by Trump drew in huge audience interest.
Twenty-First Century Fox announced that its revenue from its film division dropped by close to 4%. Total revenue at the company was up 4.2% to end the quarter at $7.68 billion.
Wall Street was expecting revenue at the media company to reach $7.72 billion.
Net income that is attributable to shareholders at Fox was up ending the quarter at 46 cents a share from last year during the same period of $672 million equal to 34 cents a share.
Excluding certain items, Fox posted earnings per share of 53 cents, which was above the estimate by analysts of 49 cents.
Fox made an approach to take over complete control of Sky a British based media company with a bid of $14.6 billion that would give it control of a company that has 22 million customers across Britain, Ireland, Germany, Italy and Austria.