Twenty-First Century Fox 2006 Annual Report Download - page 47

Results of Operations (CONTINUED)
Segment Analysis:
The following table sets forth the Company’s revenues and operating income by segment, for fiscal 2006 as compared
to fiscal 2005.
2006 2005 Change % Change
For the years ended June 30, ($ millions)
Revenues:
Filmed Entertainment $6,199 $5,919 $2805%
Television 5,334 5,338 (4) —
Cable Network Programming 3,358 2,68867025%
Direct Broadcast Satellite Television 2,542 2,313 229 10%
Magazines and Inserts 1,090 1,068 22 2%
Newspapers 4,095 4,083 12 —
Book Publishing 1,312 1,327(15) (1)%
Other 1,397 1,123 274 24%
Total revenues $25,327 $23,859 $1,468 6%
Operating income (loss):
Filmed Entertainment $1,092 $1,058 $34 3%
Television 1,032 952 80 8%
Cable Network Programming 864 702 162 23%
Direct Broadcast Satellite Television 39 (173) 212 **
Magazines and Inserts 307 298 93%
Newspapers 517 740 (223) (30)%
Book Publishing 167 164 32%
Other (150) (177) 27 (15)%
Total operating income $3,868 $3,564 $304 9%
** not meaningful
Filmed Entertainment (25% of the Company’s consolidated revenues in fiscal 2006 and 2005, respectively)
For the fiscal year ended June 30, 2006, revenues at the FilmedEntertainment segment increased $280 million, or 5%, as
compared to fiscal 2005. This increaseis primarily due to an increase in worldwide theatrical, pay television andfree tele-
vision revenues, partially offset by adecrease in worldwide home entertainment revenues. Theatrical revenues increased
primarily due to improved performance and an increase in the number of releases, driven by successful titles including Ice
Age: The Meltdown, X-Men: The Last Stand, Fantastic Four, Walk the Line,BigMomma’s House2and Cheaper by the Dozen2.
Fiscal 2005 theatrical releases included I, Robot, Alien vs. Predator, Robots, Hide &Seek and Sideways. The increases in world-
wide pay television andfree television revenues are primarily due to astronger film lineup, more feature films available
during fiscal 2006 and stronger revenues from the returning primetime series 24 and new primetime series Prison Break and
My Name Is Earl.Fiscal 2006 worldwide home entertainment revenues were driven by the worldwide release of Fantastic
Four, Walk the Line,Robots, Kingdom of Heaven and Hide &Seek. Fiscal 2005 included the worldwide home entertainment
release of The Day After Tomorrow, I, Robot, Alien vs. Predator, Garfield, Dodgeball, Man on Fire, Napoleon Dynamite, the Star
Wars Trilogy and the distribution fees earned for The Passion of the Christ.Thefilm homeentertainment decreases were
slightly offset by home entertainment revenue from television titles, including Family Guy and 24. Home entertainment
revenues generated from the sale and distribution of film and television titles in fiscal 2006 were 76% and 24%,
respectively, of total home entertainment revenues.
Operating income at the FilmedEntertainment segment for fiscal 2006 increased $34 million, or 3%, as compared to
fiscal 2005. This improvement was due to the revenue changes noted above and lower home entertainment marketing and
manufacturing costs, partially offset by higher theatrical marketing costs directly associated with theincreased number of
releases.
Television (21% and 22% of the Company’s consolidated revenues in fiscal 2006 and 2005, respectively)
For the fiscal year ended June 30, 2006, Television segment revenue was consistent with fiscal 2005. The Television segment
reported an increase in Operatingincome for the fiscal year ended June 30, 2006 of $80 million, or 8%, from fiscal 2005.
Revenues at the Company’s U.S. television operationsdecreased 1% for the fiscal year ended June 30, 2006 as com-
pared to fiscal 2005. The decrease was primarily due to the broadcast of the Super Bowl and Daytona 500 in fiscal 2005,
ANNUAL REPORT 47