21st Century Fox, which is preparing for a smaller media empire with the sale of its movie and TV studio to Disney, said revenue at its cable TV division rose 10% in the most recent quarter.

The parts of the company that Fox will keep after the $52.4 billion deal, announced in December 2017, include the Fox network, Fox News Channel and Fox Business Network, as well as sports networks FS1, FS2 and Big Ten Network, and its 28 local TV stations.

The cable TV segment reported higher advertising, syndication fees and affiliate fees from cable and satellite providers, which increased revenue to $4.4 billion. 

Fox reported total revenue of $8.04 billion, up 4%. That beat expectations of $7.9 billion, based on analysts polled by S&P Global Market Intelligence.

Net income more than doubled to $1.83 billion, or 99 cents per share. Analysts expected $703 million or 38 cents per share.

Helping the bottom line: a $1.34 billion benefit from recently passed tax reform.Excluding that benefit and restructuring charges, it would have earned 42 cents.

Fox (FOXA) shares rose 2% in after-hours trading, before returning to the closing price of $36.06. The stock is up 29% over the last six months, while the Nasdaq is up 10%.

The quarter’s success came despite a tough comparison to the previous year, which included political campaign advertising.

“Our results also reflect increased investment behind higher volumes of global sporting events as well as film releases from our studio, which led the industry in Golden Globe awards and Oscar nominations,” said Rupert Murdoch and Lachlan Murdoch, both executive chairmen of 21st Century Fox. Murdoch controls 21st Century Fox with his sons James and Lachlan. 

The company remains focused on completing two pending deals, the $15 billion acquisition of the 61% of U.K.-based TV and Internet provider Sky that it doesn’t own and the sale of assets to Disney, and “planning for the exciting launch of the new ‘Fox’,” they said.

Fox has faced some hurdles in acquiring Sky, and two weeks ago the U.K. competition regulator issued a preliminary ruling that the deal would not be in the public interest. The U.K. culture secretary, who will get the report, is expected to make a ruling in several months.

“We’ll continue to engage constructively with the (the Competition and Markets Authority) to address their concerns ahead of their May 1 final report,” Fox CEO James Murdoch said in a conference call with analysts after the company released its earnings.

Fox expects to gain regulatory approval for the deal by the end of June, he said.

Fox is already preparing for its next phase, last week landing a five-year deal for the NFL’s Thursday Night Football broadcasts, valued at more than $3 billion.

Despite declining NFL viewership, live events bring a concentrated audience that advertisers covet, James Murdoch said.

“NFL programming is hands-down the most powerful in all of media,” he said. “And if you look at our decades-long relationship with the league, I think you’ll agree, having the most important sports rights over a longer term has always served us well.”

Fox has gained about four million subscribers across broadband-delivered TV services such as Hulu and DirecTV Now, helping offset declines of traditional pay-TV subscribers, James Murdoch said.

Making Fox channels available on Net TV services, “makes our content and our brands more available and not less, it’s all about enabling that competition,” he said. “We’re very encouraged by the growth of these new platforms and encouraged by that sector”

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.
 

 

 

 

 

 

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