Yahoo Finance Will FOXA’s Filmed Entertainment Give a Blockbuster Performance?
How Will Fiscal 2H16 Play Out for 21st Century Fox?
Fox’s film slate in 2016
21st Century Fox’s (FOXA) sequel to the highest-grossing movie ever, Avatar, was slated to release this year. However, it has been delayed. According to a Benzinga report, James Cameron, the director of Avatar, stated that the sequel to the movie would be released in 2018, and there would now be four sequels to the original movie.
According to the report, 21st Century Fox has also been promoting other movies from its franchises lined up for this year, including Ice Age, X-Men, and Independence Day. The company has also tied up with DreamWorks Animation (DWA). Trolls, the next movie in this partnership after Kung Fu Panda 3, is slated to be released this year.
The company’s Fox Searchlight division has also bagged The Birth of a Nation, a movie tipped to win at the Oscars next year at the Sundance Film Festival.
The Filmed Entertainment segment in fiscal 2Q16
In fiscal 2Q16, FOXA’s Filmed Entertainment segment was its second-largest revenue contributor, contributing 30% to the company’s total revenue of $7.4 billion.
The segment saw revenue of $2.4 billion in fiscal 2Q16, a fall of $392 million compared to fiscal 2Q15. Its OIBDA (operating income before depreciation and amortization) was $302 million, a fall of ~10% from its OIBDA in fiscal 2Q15.
FOXA’s Filmed Entertainment segment revenue in fiscal 2Q16 was negatively impacted by the strong US dollar and the fall in revenue from the company’s Home Entertainment segment.
By comparison, Comcast’s (CMCSA) Universal Pictures had its most profitable year in fiscal 2015, with operating cash flow of $1.2 billion, a rise of 74% over fiscal 2014.
21st Century Fox makes up 0.19% of the SPDR S&P 500 ETF (SPY). SPY holds 0.85% of the Walt Disney Company (DIS), and it has 2.6% exposure to the communication services sector.
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