On Thursday, Twenty-first Century Fox announced that its revenue and earnings had surpassed Wall Street expectations, mainly due to TV and film-related businesses.
Fox earned a whopping 920$ million in net income during the first fiscal quarter of the year. When comparing this year’s earnings to last year’s, the recent income is just a bit double that amount. These earnings rose to 57 cents a share, with a revenue growth of 18 percent.
Cable network programming had a 14% increase in revenue during the past three months, and the one from the FOX broadcast network also increased 14%. The film entertainment division of Fox had an even better quarter, as it improved a 27% in revenue. This last piece of information is somewhat odd, since Fox has only had one significant movie this year, Deadpool 2, with most others like Red Sparrow or Love, Simon were box office upsets.
However, the increase is probably due to the confirmation of a pending merger the company will have with Disney, as it creates a promising future for the company. It was also influenced by the fact that the company has many upcoming movies that are likely to do well financially, such as The Predator, The Hate U Give and Bohemian Rhapsody.
All of this caused for the company’s stock to increase over 75% this year alone. Under the Disney merger, which is likely to be finalized by next year, Disney would acquire Fox’s film and TV studios, most of Hulu, a part of the UK TV company Sky and cable networks FX and National Geographic. If Disney is known for anything, it’s their capacity to work and manage a subsidiary company and its properties, as they’ve done so with Marvel and Star Wars. The merger could also be a relief for some investors, who probably felt intimidated by the recent merger between AT&T and Time Warner, which possibly created an entertainment titan. However, having another union of forces in the market makes the competition evener.
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