Twenty-First Century Fox 2013 Annual Report Download - page 56

RESULTS OF OPERATIONS
Results of Operations—Fiscal 2013 versus Fiscal 2012
The following table sets forth the Company’s operating results for fiscal 2013 as compared to fiscal 2012.
For the years ended June 30,
2013 2012 Change % Change
(in millions, except %)
Revenues:
Affiliate $ 7,677 $ 6,348 $ 1,329 21%
Subscription 4,053 3,408 645 19%
Advertising 7,627 7,552 75 1%
Content 7,620 7,060 560 8%
Other 698 683 15 2%
Total Revenues 27,675 25,051 2,624 10%
Operating expenses (17,496) (15,663) (1,833) 12%
Selling, general and administrative (4,007) (3,719) (288) 8%
Depreciation and amortization (797) (711) (86) 12%
Impairment and restructuring charges (48) (242) 194 (80)%
Equity earnings of affiliates 655 636 19 3%
Interest expense, net (1,063) (1,032) (31) 3%
Interest income 57 77 (20) (26)%
Other, net 3,760 66 3,694 **
Income before income tax expense 8,736 4,463 4,273 96%
Income tax expense (1,690) (1,094) (596) 54%
Income from continuing operations 7,046 3,369 3,677 **
Income (loss) from discontinued operations, net of tax 277 (1,997) 2,274 **
Net income 7,323 1,372 5,951 **
Less: Net income attributable to noncontrolling interests (226) (193) (33) 17%
Net income attributable to Twenty-First Century Fox, Inc.
stockholders $ 7,097 $ 1,179 $ 5,918 **
** not meaningful
Overview—The Company’s revenues increased 10% for the fiscal year ended June 30, 2013 as compared to
fiscal 2012, as a result of higher affiliate, subscription and content revenues. The increase in affiliate revenues
was attributable to higher average rates per subscriber across most channels, the consolidations of Fox Sports
Asia and Fox Pan American Sports LLC, doing business as Fox Sports Latin America (“FSLA”), the acquisition
of EMM and higher retransmission consent revenues. The increase in subscription revenue was due to the
consolidation of Sky Deutschland in January 2013, partially offset by lower subscription revenue at SKY Italia.
The higher content revenue was due to an increase in worldwide theatrical revenues. The strengthening of the
U.S. dollar against local currencies resulted in a revenue decrease of approximately $370 million for the fiscal
year ended June 30, 2013 as compared to fiscal 2012.
Operating expenses increased 12% for the fiscal year ended June 30, 2013 as compared to fiscal 2012,
primarily due to increased operating expenses at the Direct Broadcast Satellite Television, Cable Network
Programming and Filmed Entertainment Segment segments of $850 million, $770 million and $210 million,
respectively. The increase at the Direct Broadcast Satellite Television segment was primarily the result of the
consolidation of Sky Deutschland and higher programming costs while the increase at the Cable Network
Programming segment was primarily due to the consolidations of Fox Sports Asia and FSLA, the acquisition of
EMM, new cricket contracts in India and the launch of new channels. The increase at the Filmed Entertainment
segment was primarily due to higher theatrical marketing costs.
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