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Murdoch's 21st Century Fox sees profits fade

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(Globalpost/GlobalPost)

Rupert Murdoch's 21st Century Fox reported a drop in quarterly profits Thursday while revenues rose at the film and television conglomerate.

In the second fiscal quarter to December 31, the net profit fell by half to $1.2 billion compared to a year earlier when one-time gains boosted earnings.

Revenues were up 15 percent at $8.2 billion.

Murdoch, the Australian-born tycoon who last year split off the fast-growing entertainment assets from publishing, welcomed "top-line revenue growth across our businesses."

But he also said the results "reflect the planned investments we are making in our core businesses to support long-term growth. We remain confident that these investments, together with our demonstrated ability to consistently grow our revenues, will drive 21st Century Fox's future profits."

Shares rose 2.6 percent to $31.98 in morning trade.

The results showed the Fox cable television operation was the only unit showing growth in operating earnings.

The other units, including broadcast television, satellite and film, showed profit declines.

Murdoch split his corporate empire into two parts in June under a long-promised plan to "unlock value" by separating high-flying entertainment operations from struggling publishing activities. He remains in charge of both.

The 21st Century Fox group includes the Fox Hollywood studios and television entities, which are showing better performance than the publishing arm, which includes struggling newspapers. That group is known as the new News Corp.

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21ST CENTURY FOX

http://www.globalpost.com/dispatch/news/afp/140206/murdochs-21st-century-fox-sees-profits-fade