Twenty-First Century Fox 2013 Annual Report Download - page 60

For the year ended
June 30, 2012
Revenues Segment OIBDA
(in millions)
CableNetworkProgramming................................................... $9,324 $3,549
Television .................................................................. 4,803 791
FilmedEntertainment ......................................................... 8,363 1,312
DirectBroadcastSatelliteTelevision ............................................. 3,740 561
Other,CorporateandEliminations............................................... (1,179) (456)
Total ...................................................................... $25,051 $5,757
Cable Network Programming (39% and 37% of the Company’s consolidated revenues in fiscal 2013 and 2012,
respectively)
For the fiscal year ended June 30, 2013, revenues at the Cable Network Programming segment increased
$1,557 million, or 17%, as compared to fiscal 2012, primarily due to higher net affiliate revenues of
approximately $1,075 million and advertising revenues of approximately $300 million, partially offset by
unfavorable foreign exchange fluctuations at FIC and STAR. The strengthening of the U.S. dollar against local
currencies resulted in a revenue decrease of approximately $175 million for the fiscal year ended June 30, 2013
as compared to fiscal 2012.
Domestic net affiliate revenues increased 12% for the fiscal year ended June 30, 2013 as compared to fiscal
year 2012, primarily due to higher average rates per subscriber across most channels, additional subscribers due
to the acquisition of an RSN in Ohio and the launch of Fox Sports San Diego. For the fiscal year ended June 30,
2013, domestic advertising revenues increased 6% as compared to fiscal 2012, primarily due to higher pricing
and ratings at FX and the National Geographic Channels, which comprised 80% of the growth.
For the fiscal year ended June 30, 2013, international net affiliate revenues increased 35% and international
advertising revenues increased 20% as compared to fiscal 2012. Over half of the international affiliate revenues’
increase and three-quarters of the international cable channels’ advertising revenues’ growth were due to local
currency growth at the non-sports channels at FIC and STAR. The balance of the growth was attributable to the
international sports channels, including FSLA, Fox Sports Asia, EMM, the launch of new channels and the new
contracts to broadcast cricket matches in India. These increases in international advertising revenues and
international affiliate revenues were partially offset by an 8% and 7% adverse impact from the strengthened U.S.
dollar, respectively.
For the fiscal year ended June 30, 2013, Segment OIBDA at the Cable Network Programming segment
increased $628 million, or 18%, as compared to fiscal 2012, primarily due to the revenue increases noted above,
partially offset by expense increases of $929 million. This increase was due to higher operating expenses
primarily due to increased programming costs from the inclusion of expenses from Fox Sports Asia, FSLA and
EMM and the new cricket contracts in India which accounted for 60% of this increase. The launch of new
channels, as noted above, and higher programming costs accounted for 30% of this increase. The higher
programming cost was a result of new shows launched on FX and new contracts for mixed martial arts matches,
U.S. college football games and higher NBA costs due to the NBA lockout in the prior year period, partially
offset by reduced NHL costs resulting from the NHL lockout in the current fiscal year. The balance of the
increase was due to higher selling, general and administrative expenses primarily related to higher personnel
costs as a result of the expansion of the business. The strengthening of the U.S. dollar against local currencies
resulted in a Segment OIBDA decrease of approximately $80 million for the fiscal year ended June 30, 2013, as
compared to fiscal 2012.
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