Bloomberg News

21st Century Fox Projects ‘High Single Digit’ Revenue Growth (2)

August 08, 2013

21st Century Fox Inc. (FOXA:US), Rupert Murdoch’s film and TV company, forecasts revenue growth in the “high single digits” in percentage terms this year. The shares advanced.

The company, which is holding a meeting with analysts and investors today, expects fees from pay-television companies to rise in the “low teens” in percentage terms, Murdoch, the chairman and chief executive officer, and President Chase Carey said on a webcast from the meeting.

Fox is counting on that growth as it commits to $4 billion in share repurchases this year and a 50 percent increase in the dividend to 25 cents. The company also plans to maintain $2 billion to $3 billion in cash, Carey said. Owners of broadcast and cable channels rely on rising licensing fees from pay-TV providers as a second revenue source alongside ad sales.

“People will give up food and a roof over their head before they give up TV,” Carey said.

CBS Corp. (CBS:US) channels in New York, Los Angeles and Dallas have been blocked out for Time Warner Cable Inc. (TWC:US) subscribers this week because of a dispute over such fees.

Fox is forecasting $9 billion in annual earnings before interest, taxes, depreciation and amortization by fiscal 2016, about 14 percent more than the $8.85 billion average of 13 analysts’ estimate (FOXA:US) compiled by Bloomberg.

Shares of Fox, which was split off in June from the publishing operations of Murdoch’s News Corp., rose (FOXA:US) 3.1 percent to $32.79 at the close in New York. The stock has gained 46 percent this year.

To contact the reporter on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


Silicon Valley State of Mind
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • FOXA
    (Twenty-First Century Fox Inc)
    • $35.77 USD
    • 0.10
    • 0.28%
  • CBS
    (CBS Corp)
    • $60.41 USD
    • -0.02
    • -0.03%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus