Twenty-First Century Fox, the media company that owns Fox networks and film studios, said Wednesday its fiscal fourth quarter net income fell 1.1% to $966 million as it incurred acquisition-related charges, but global box office successes of several movie titles drove its revenue higher. Excluding some item charges, adjusted earnings per share of 42 cents beat analysts’ estimate of 39 cents that was tallied by Bloomberg. Revenue for the quarter ending June 30 totaled $8.4 billion, up 17% from a year ago.
Its shares rose 4% in after-hours trading to $33.65, furthering the 3.3% gain during regular-hours trading that was triggered by the company’s decision to withdraw its bid to acquire competitor Time Warner. Last month, Fox, controlled by Chairman and CEO Rupert Murdoch, pitched an $85-a-share bid for Time Warner, an unsolicited move that sank Fox’s shares in recent weeks. Citing the sinking stock price, Murdoch announced Tuesday that he’s ending his pursuit and told analysts in an earnings call that his decision is “resolute.”
“We’re not going to (just) buy what’s around now. If it’s something unique and small, I wouldn’t say never. But we have no plans to go on the acquisitions trail,” Murdoch said. Its quarterly bottom line was hurt by accounting charges related to Fox’s acquisition of controlling stakes in Sky Deutschland, a satellite TV provider based in Germany, and the Yankees Entertainment and Sports Network, the company said.