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Fox had projected earnings in the mid-$7 billion range for
the 12 months through June 2016. Its shares fell about 5 percent
to $30.50 in after-hours trading.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
are projected to grow in the mid-single digits above the $6.49
billion from the just-ended fiscal year, Chief Financial Officer
John Nallen said on a conference call.
The growth will be driven by cable networks, Chief Executive
Officer James Murdoch said. He said he expected older channels
such as Fox News and FX to lose subscribers as the pay TV
industry shrinks, but newer offerings including Fox Sports 1 and
FXX should pick up customers.
"We have a high degree of confidence in achieving our earnings
guidance," Murdoch said.
James Murdoch took over from his father, Rupert, as CEO of Fox
on July 1. His brother, Lachlan, was named executive co-chairman
alongside Rupert.
Earlier, Fox reported a 9.3 percent fall in quarterly adjusted
revenue as television advertising sales fell and a lack of major
film releases weighed on its studio.
But Fox's adjusted profit beat Wall Street expectations and the
company said it would buy back $5 billion Class A shares over
the next 12 months.
Adjusted revenue, which excluded the sale of the company's
direct broadcast satellite television businesses, fell to $6.21
billion. Analysts on average had expected revenue of $6.41
billion, according to Thomson Reuters I/B/E/S.
Revenue in Fox's film studio fell by a third to $1.91 billion as
no major titles released in the quarter.
At the cable network programming business, revenue rose 6.6
percent to $3.57 billion, boosted by coverage of NASCAR and ICC
Cricket World Cup sporting events. The business accounts for
more than half the company's total revenue.
Domestic advertising sales rose 4 percent, helped by
double-digit growth in its sports channels including Star Sports
and Fox Sports 1.
Excluding items, the company earned 39 cents per share in the
fourth quarter ended June 30, beating the average analyst
estimate of 37 cents, according to Thomson Reuters I/B/E/S.
(Reporting by Anya George Tharakan in Bengaluru; Editing by
Sayantani Ghosh, Bernard Orr)
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