21st Century Fox beats earnings forecasts thanks to US election boost
The heated US presidential race provided a boost to 21st Century Fox as the Murdoch-controlled firm beat earnings forecasts.
Revenues rose four per cent to $7.68bn (£6.2bn) for the three months ending in December, just short of forecasts.
Operating income rose 27 per cent to $857m, compared to $674m for the same period a year ago. Earnings were $0.53 per share when adjustments were stripped out.
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21st Century Fox noted higher political advertising for its local broadcast stations and Fox New Channel, with media buyers picking up a raft of spots for highly watched election coverage.
Executive chairmen Rupert and Lachlan Murdoch said:
We delivered a second consecutive quarter of double-digit earnings growth, driven by solid increases in affiliate and advertising revenues across cable and television.
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At the end of last year, 21st Century Fox said that it had reached an agreement to take over the 61 per cent of Sky that it did not already own. The deal is expected to be completed by the end of this year.
A previous takeover approach for Sky failed in 2011, at the height of the News of the World phone-hacking scandal and amid political and regulatory scrutiny.
Rupert and Lachlan Murdoch said the transaction will "generate significant adjusted earnings per share and free cash flow accretion and it provides clarity on our near-term capital allocation priorities".