Twenty-First Century Fox 2013 Annual Report Download - page 68

worldwide theatrical and home entertainment success of Rise of the Planet of the Apes and Alvin and the
Chipmunks: Chipwrecked, the worldwide theatrical success of Prometheus and the home entertainment and pay
television performances of Rio and X-Men: First Class as compared to fiscal 2011 which included the successful
worldwide theatrical and home entertainment release of The Chronicles of Narnia: Voyage of the Dawn Treader
and Black Swan, the worldwide theatrical release of Rio and X-Men: First Class and the home entertainment and
pay television performances of Avatar.
For the fiscal year ended June 30, 2012, Segment OIBDA at the Filmed Entertainment segment increased
$254 million, or 24%, as compared to fiscal 2011, primarily due to the revenue increases noted above, partially
offset by an increase of approximately $300 million in expenses. Operating expense increased approximately $90
million due to the inclusion of expenses related to Shine and higher television production costs, partially offset
by lower film production costs primarily due to lower marketing and releasing costs. Selling, general and
administrative expenses increased by approximately $210 million primarily due to the inclusion of expenses
related to Shine.
Direct Broadcast Satellite Television (15% and 16% of the Company’s consolidated revenues in fiscal 2012 and
2011, respectively)
For the fiscal year ended June 30, 2012, SKY Italia’s revenues decreased $21 million, or 1%, as compared
to fiscal 2011 primarily due to lower subscription revenues. SKY Italia had a net decrease of approximately
71,000 subscribers during fiscal 2012, which decreased SKY Italia’s total subscriber base to 4.9 million at
June 30, 2012, reflecting the continued challenging economic environment in Italy. The total churn for fiscal
2012 was approximately 641,000 subscribers on an average subscriber base of 4.9 million, as compared to churn
of approximately 508,000 subscribers on an average subscriber base of 4.9 million in fiscal 2011. Subscriber
churn for the period represents the number of SKY Italia subscribers whose service was disconnected during the
period. During the fiscal year ended June 30, 2012, the strengthening of the U.S. dollar against the Euro resulted
in a revenue decrease of approximately $78 million as compared to fiscal 2011.
ARPU of approximately €41 in the fiscal year ended June 30, 2012 decreased from approximately €43
reported in fiscal 2011, primarily due to the negative impact of subscriber discounts.
SAC of approximately €400 in the fiscal year ended June 30, 2012 increased from fiscal 2011, primarily due
to higher marketing costs on a per subscriber basis.
For the fiscal year ended June 30, 2012, SKY Italia’s Segment OIBDA increased $15 million, or 3%, as
compared to fiscal 2011 principally from the absence of the FIFA World Cup and lower advertising costs from
the absence of the fiscal 2011 rebranding campaign. During the fiscal year ended June 30, 2012, the weakening
of the U.S. dollar against the Euro resulted in a Segment OIBDA increase of approximately $9 million as
compared to fiscal 2011.
Other, Corporate and Eliminations ((4)% and (2)% of the Company’s consolidated revenues in fiscal 2012 and
2011, respectively)
The Other, Corporate and Eliminations segment contains the Company’s corporate entities and
intercompany eliminations and other businesses. For the fiscal year ended June 30, 2012, revenues related to
business activities at the Other, Corporate and Eliminations segment decreased as compared to fiscal 2011,
primarily due to the exclusion of revenues from the Dispositions.
For the fiscal year ended June 30, 2012, Segment OIBDA at the Other, Corporate and Eliminations segment
improved as compared to fiscal 2011, primarily due to the net impact of the Dispositions.
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