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Fox Studio Q1 Income Declines 17%

8 Nov, 2017 By: Erik Gruenwedel

21st Century Fox’s Hulu equity stake posts $62 million loss

The 20th Century Fox Studio Nov. 8 reported first-quarter (ended Sept. 30) operating income of $256 million, down 17.3% from operating income of $311 million during the previous-year period. Revenue increased 3% to $1.96 billion, from $1.9 billion a year ago.

The studio, which includes 20th Century Fox Home Entertainment, attributed the income decline to lower worldwide TV content license contributions. In the previous-year period, Fox benefited from pay-TV licensing of X-Men: Days of Future Past and the broadcast TV licensing of The Martian.

The studio decline more than offset higher television production contributions from higher domestic syndication revenue that included the licensing of “Futurama.”

Top-selling packaged media includes Logan, which has generated $36.8 million in sales of more than 1.7 million discs since its May 23 release, and Hidden Figures, which has generated almost $20 million from more than 1 million discs sold since its April 11 release, according to The-Numbers.com.

Meanwhile, Fox disclosed its 30% equity stake in Hulu generated a loss of $62 million, up nearly 60% from a $39 million loss a year earlier. With Disney and Comast holding similar equity stakes, along with Time Warner’s 10% stake, the subscription streaming video service conceivably lost more than $200 million in the quarter.

Fox’s challenging quarter underscores reports it attempted to sell studio, TV production, pay-TV and international satellite operator Sky to Disney. It would have retained Fox News and Fox Sports.

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