Twenty-First Century Fox 2014 Annual Report Download - page 63

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57
increases were partially offset by decreased home entertainment revenues of approximately $135 million. Fiscal
2013 included the worldwide theatrical and home entertainment success of Ice Age: Continental Drift, Life of Pi and
Taken 2, the worldwide theatrical success of The Croods, a product of the Company’s DreamWorks Animation
distribution deal, and the worldwide home entertainment and pay television performance of Prometheus, as
compared to fiscal 2012 which included the successful worldwide theatrical and home entertainment release 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.
For fiscal 2013, Segment OIBDA at the Filmed Entertainment segment was consistent with fiscal 2012, as the
revenue increases were offset by higher expenses. Operating expenses increased by approximately $210 million
primarily due to higher theatrical marketing costs associated with the theatrical releases noted above as well as the
initial pre-launch costs for Wolverine, and the distribution of Turbo for DreamWorks Animation. Selling, general
and administrative expenses increased by approximately $70 million primarily due to higher personnel costs.
Direct Broadcast Satellite Television (16% and 15% of the Company’s consolidated revenues in fiscal 2013 and
2012, respectively)
For fiscal 2013, revenues at the DBS segment increased $699 million, or 19%, as compared to fiscal 2012,
primarily due to the inclusion of $900 million in revenues resulting from the consolidation of Sky Deutschland,
partially offset by a decrease of approximately $200 million in revenues at Sky Italia. The decrease at Sky Italia was
primarily due to the strengthening of the U.S. dollar against the Euro, which resulted in a revenue decrease of
approximately $120 million as compared to fiscal 2012 and the balance of the change was primarily due to a
decrease in activation, advertising and subscription revenues.
Sky Italia had a net decrease of approximately 146,000 subscribers during fiscal 2013, which decreased Sky
Italia’s total subscriber base to 4.8 million at June 30, 2013, reflecting the continued challenging economic
environment in Italy. The total churn for fiscal 2013 was approximately 684,000 subscribers on an average
subscriber base of 4.8 million, as compared to churn of approximately 641,000 subscribers on an average subscriber
base of 4.9 million in fiscal 2012. During fiscal 2013, Sky Deutschland had a net increase of approximately 90,000
subscribers, which increased Sky Deutschland’s total subscriber base to 3.5 million. The total churn for fiscal 2013
was approximately 179,000 subscribers on an average subscriber base of 3.4 million, as compared to churn of
approximately 159,000 subscribers on an average subscriber base of 3.1 million in fiscal 2012.
Sky Italia’s ARPU of approximately €42 per month in fiscal 2013 remained relatively consistent with the
corresponding period of fiscal 2012. Sky Deutschland’s ARPU of approximately €34 per month in fiscal 2013
increased from approximately €32 per month reported in fiscal 2012, primarily due to a higher incremental increase
in total subscriber-related revenues.
Sky Italia’s SAC of approximately €350 in fiscal 2013 decreased from approximately €400 in fiscal 2012, due
to lower commissions and installation costs on a per subscriber basis. The lower commissions were a result of a
change in the sales channel mix and the lower installation costs were a result of fewer customers taking up the full
subscription offer.
For fiscal 2013, Segment OIBDA at the DBS segment decreased $164 million, or 29%, as compared to fiscal
2012, primarily due to higher programming expenses of approximately $150 million at Sky Italia associated with the
broadcast of the Olympics and expanded UEFA Champions and Europa League, and Formula One coverage. This
decrease in Segment OIBDA was partially offset by the consolidation of Sky Deutschland. During fiscal 2013, the
strengthening of the U.S. dollar against the Euro resulted in a Segment OIBDA decrease of approximately $12
million as compared to fiscal 2012.
Other, Corporate and Eliminations ((4)% of the Company’s consolidated revenues in fiscal 2013 and 2012)
The Other, Corporate and Eliminations segment contains the Company’s corporate entities and intercompany
eliminations and other businesses. For fiscal 2013 revenues related to business activities at the Other, Corporate and