Twenty-First Century Fox 2013 Annual Report Download - page 63

Results of Operations—Fiscal 2012 versus Fiscal 2011
The following table sets forth the Company’s operating results for fiscal 2012 as compared to fiscal 2011.
For the years ended June 30,
2012 2011 Change % Change
(in millions, except %)
Revenues:
Affiliate $ 6,348 $ 5,430 $ 918 17%
Subscription 3,408 3,527 (119) (3)%
Advertising 7,552 7,830 (278) (4)%
Content 7,060 6,755 305 5%
Other 683 690 (7) (1)%
Total Revenues: 25,051 24,232 819 3%
Operating expenses (15,663) (15,745) 82 (1)%
Selling, general and administrative (3,719) (3,759) 40 (1)%
Depreciation and amortization (711) (777) 66 (8)%
Impairment and restructuring charges (242) (288) 46 (16)%
Equity earnings of affiliates 636 352 284 81%
Interest expense, net (1,032) (962) (70) 7%
Interest income 77 75 2 3%
Other, net 66 (30) 96 **
Income before income tax expense 4,463 3,098 1,365 44%
Income tax expense (1,094) (673) (421) 63%
Income from continuing operations 3,369 2,425 944 39%
(Loss) income from discontinued operations, net of tax (1,997) 443 (2,440) **
Net income 1,372 2,868 (1,496) (52)%
Less: Net income attributable to noncontrolling interests (193) (129) (64) 50%
Net income attributable to Twenty-First Century Fox, Inc.
stockholders $ 1,179 $ 2,739 $(1,560) (57)%
** not meaningful
Overview—The Company’s revenues increased 3% for the fiscal year ended June 30, 2012 as compared to
fiscal 2011, primarily due to higher affiliate and content revenues partially offset by decreases in advertising and
Direct Broadcast Satellite Television subscription revenues. The increase in affiliate revenues was attributable to
higher average rates per subscriber across most channels, the consolidation of FSLA and higher retransmission
consent revenues. The increase in content revenue was primarily due to the additional revenues of approximately
$700 million from Shine Limited (“Shine”), which was acquired in fiscal 2011, and was partially offset by a
$400 million decrease in theatrical and home entertainment revenue. The decrease in advertising revenues was
primarily due to the absence of approximately $380 million in revenues resulting from the dispositions of
Myspace, Fox Mobile and News Outdoor Russia (the “Dispositions”).
Operating expenses decreased 1% for the fiscal year ended June 30, 2012 as compared to fiscal 2011,
primarily due to the absence of operating expenses from the Dispositions and lower operating expenses at the
Filmed Entertainment segment. Operating expenses at the Filmed Entertainment segment decreased
approximately $30 million as the inclusion of Shine operating expenses of approximately $550 million were
more than offset by lower marketing and releasing costs. The decrease in operating expenses was partially offset
by an approximate $525 million increase at the Cable Network Programming segment primarily due to higher
programming costs.
Selling, general and administrative expenses decreased 1% for the fiscal year ended June 30, 2012 as
compared to fiscal 2011, primarily due to decreased expenses at the Other, Corporate and Eliminations segment
resulting from the Dispositions, partially offset by the inclusion of expenses related to Shine.
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