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 21st Century Fox Reports Third Quarter Income From Continuing Operations Before Income Tax Expense of $1.25 Billion and Total Segment Operating Income Before Depreciation and Amortization of $1.94 Billion on 5% Revenue Growth
   Wednesday, May 10, 2017 4:03:00 PM ET

Twenty-First Century Fox, Inc. ("21st Century Fox" or the "Company" -- NASDAQ: FOXA, FOX) today reported financial results for the three months ended March 31, 2017.

The Company reported quarterly income from continuing operations attributable to 21st Century Fox stockholders of $811 million ($0.44 per share), as compared to $844 million ($0.44 per share) reported in the prior year quarter. Excluding the net income effects of Impairment and restructuring charges, Other, net and adjustments to Equity losses of affiliates(1) adjusted quarterly earnings per share from continuing operations attributable to 21st Century Fox stockholders(2) was $0.54, a 15% increase over the $0.47 reported in the same quarter of the prior year.

The Company reported total quarterly revenues of $7.56 billion, a $336 million, or 5%, increase from the $7.23 billion of revenues reported in the prior year quarter. This revenue growth reflects higher advertising revenue at the Television segment, led by the broadcast of Super Bowl LI, and higher affiliate revenues at both the Cable Network Programming and Television segments partially offset by lower content revenues at the Filmed Entertainment segment.

Quarterly income from continuing operations before income tax expense of $1.25 billion decreased $139 million from the $1.39 billion reported in the prior year quarter. Quarterly total segment OIBDA(3) of $1.94 billion increased $57 million, or 3%, from the $1.88 billion reported in the prior year quarter. This increase was due to higher contributions from the Company’s Cable Network Programming and Television segments partially offset by lower contributions from the Filmed Entertainment segment.

Commenting on the results, Executive Chairmen Rupert and Lachlan Murdoch said:

"We delivered a quarter marked by operational momentum and strong domestic affiliate fee growth. We continue to demonstrate our ability to capture opportunities to grow distribution of our domestic portfolio of video brands, whether through established MVPD partners or new digital entrants such as Hulu’s recently launched live television service. We made progress in the quarter against our key strategic priorities, exemplified by our creative successes across screens, from theatrical releases Logan and Hidden Figures to new FX debuts of Legion, Feud and Taboo. Our proposed combination with Sky, which was recently approved unconditionally by the European Commission, will advance another of our strategic priorities, driving innovation for customers. We remain confident the proposed transaction will be approved by the end of the calendar year following a thorough review process."

____________
 (1)   See footnote (a) on page 14 for a description of the
                          adjustments to Equity losses from affiliates.
 (2)                      See page 14 for a reconciliation of reported income and
                          earnings per share from continuing operations attributable to 21st
                          Century Fox stockholders to adjusted income and adjusted earnings
                          per share from continuing operations attributable to 21st Century
                          Fox stockholders, which may be considered non-GAAP financial
                          measures.
 (3)                      Total segment operating income before depreciation and
                          amortization ("OIBDA") may be considered a non-GAAP financial
                          measure. See page 11 for a description of total segment OIBDA and
                          for a reconciliation from income from continuing operations before
                          income tax expense to total segment OIBDA.
                           

REVIEW OF SEGMENT OPERATING RESULTS

                                                                    Three Months Ended                                                                   Nine Months Ended
                                                                                                               March 31,                                                                                              March 31,
                                                                                       2017                             2016                                               2017                             2016
                                                                            ---------------------------                         ---------------------------                       ----------------------------                        ----------------------------
                                                                                                                                                                 US $ Millions
Revenues:
                                                                                                                                                                                                                                                                   
Cable Network Programming                                                                      $ 4,024                                             $ 3,941                                           $ 11,801                                            $ 11,108
Television                                                                                       1,690                                               1,299                                              4,646                                               4,064
Filmed Entertainment                                                                             2,256                                               2,321                                              6,432                                               6,467
Other, Corporate and Eliminations                                              (406 )                           (333 )                        (1,127 )                           (959 )
                                                                            -------------------- -----                          -------------------- -----                        -------------------- ------                         -------------------- ------
Total revenues                                                                                 $ 7,564                                             $ 7,228                                           $ 21,752                                            $ 20,680
                                                                            ==================== =====                          ==================== =====                        ==================== ======                         ==================== ======
                                                                                                                                                                                                                                                                   
Segment OIBDA:
                                                                                                                                                                                                                                                                   
Cable Network Programming                                                                      $ 1,446                                             $ 1,375                                           $  4,160                                            $  3,931
Television                                                                                         190                                                 125                                                757                                                 600
Filmed Entertainment                                                                               373                                                 470                                              1,073                                                 921
Other, Corporate and Eliminations                                               (71 )                            (89 )                          (267 )                           (306 )
                                                                            -------------------- -----                          -------------------- -----                        -------------------- ------                         -------------------- ------
Total Segment OIBDA(a)                                                                         $ 1,938                                             $ 1,881                                           $  5,723                                            $  5,146
                                                                            ==================== =====                          ==================== =====                        ==================== ======                         ==================== ======
                                                                                                                                                                                                                                                                   
    (a)   Total segment OIBDA may be considered a non-GAAP financial
                                                                   measure. See page 11 for a description of total segment OIBDA and
                                                                   for a reconciliation from income from continuing operations before
                                                                   income tax expense to total segment OIBDA.
                                                                    

CABLE NETWORK PROGRAMMING

Cable Network Programming quarterly segment OIBDA increased 5% to $1.45 billion and revenue increased 2% to $4.02 billion. Expenses were consistent with the prior year quarter as higher entertainment programming and marketing costs at FX Networks and National Geographic Channels, higher National Association for Stock Car Auto Racing ("NASCAR") rights costs at FOX Sports 1 ("FS1") and higher National Basketball Association ("NBA") rights costs at the regional sports networks ("RSNs") were offset by lower sports rights costs at STAR India due to the absence of the prior year broadcast of the International Cricket Council ("ICC") Cricket World Twenty20 matches.

Domestic affiliate revenue increased 8% reflecting continued contractual rate increases led by Fox News, FS1, the RSNs and FX Networks. Domestic advertising revenue was flat over the prior year period as the impact of higher ratings at Fox News and FS1 was offset by lower revenues at the National Geographic Partners businesses. Domestic OIBDA contributions were equal to the prior year quarter as higher contributions from Fox News were offset by lower contributions from FX Networks and National Geographic Channels.

International affiliate revenue increased 5% driven by local currency growth of 7% partially offset by negative currency impacts from the strengthened U.S. dollar. International advertising revenue decreased 18% from lower advertising revenues at STAR India due to the absence of the prior year broadcast of the ICC Cricket World Twenty20 matches and the effect of the Indian government demonetization initiatives on the general advertising market. Quarterly OIBDA at the international cable channels increased 44% from the prior year quarter primarily reflecting lower sports programming costs at STAR India and higher contributions from Fox Networks Group International.

TELEVISION

Television reported quarterly segment OIBDA of $190 million, an increase of 52% as compared to the prior year quarter driven by 30% revenue growth reflecting increased advertising revenue and continued growth of retransmission consent revenues. Quarterly advertising revenues grew 39% from the corresponding period of the prior year driven by the broadcast of Super Bowl LI and the inclusion of one additional National Football League divisional playoff game, partially offset by the impact from lower general entertainment ratings, led by the absence of American Idol, which concluded its final season in the prior year. The segment results also included higher sports programming costs associated with the broadcast of Super Bowl LI and the additional National Football League divisional playoff game.

FILMED ENTERTAINMENT

Filmed Entertainment generated quarterly segment OIBDA of $373 million, a $97 million decrease from the $470 million reported in the same period a year-ago. The OIBDA decrease in the current quarter was driven primarily by lower film studio contributions reflecting difficult comparisons to last year’s strong worldwide theatrical performance of Deadpool and the home entertainment performance of The Martian, partially offset by higher television production contributions from higher subscription video-on demand revenues led by the licensing of The People v. O.J. Simpson: American Crime Story and higher network revenue. Quarterly segment revenues decreased $65 million to $2.26 billion, primarily reflecting lower worldwide theatrical and home entertainment revenues partially offset by higher television production revenues. Quarterly results also included the successful theatrical performances of both Logan and Hidden Figures, which have grossed approximately $600 million and $230 million in worldwide box office, respectively.

REVIEW OF EQUITY (LOSSES) EARNINGS OF AFFILIATES’ RESULTS

The Company’s share of equity (losses) earnings of affiliates is as follows:

                                                                                         Three Months Ended                                                                Nine Months Ended
                                                                                                                                    March 31,                                                                                           March 31,
                                                                    % Owned                                  2017                            2016                                             2017                           2016
                                                                  ----------                      --------------------------                         --------------------------                       --------------------------                        --------------------------
                                                                                                                                                                                    US $ Millions
                                                                                                                                                                                                                                                                                   
Sky plc                                                             39%(1)                                           $   93                                             $   95                                           $  255                                            $  305
Other equity affiliates                                           Various(2)                        (144 )                          (104 )                        (312 )                         (267 )
                                                                                                  -------------------- ----                          -------------------- ----                        -------------------- ----                         -------------------- ----
Total equity (losses) earnings of affiliates                                                                         $  (51 )                                           $   (9 )                                         $  (57 )                                          $   38
                                                                                                  ==================== ====                          ==================== ====                        ==================== ====                         ==================== ====
                                                                                                                                                                                                                                                                                   
    (1)   Please refer to Sky plc’s ("Sky") earnings releases for
                                                                   detailed information.
                                          (2)                      Primarily comprised of Endemol Shine Group, Hulu and Tata Sky
                                                                    

Quarterly equity losses of affiliates were $51 million as compared to $9 million reported in the same period a year-ago. The $42 million increase in losses primarily reflects higher equity losses reported at Hulu and Endemol Shine Group.

To receive a copy of this press release through the Internet, access 21st Century Fox’s corporate Web site located at http://www.21cf.com .

Audio from 21st Century Fox’s conference call with analysts on the third quarter results can be heard live on the Internet at 4:30 p.m. Eastern Daylight Time today. To listen to the call, visit http://www.21cf.com .

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory factors. More detailed information about these and other factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The "forward-looking statements" included in this document are made only as of the date of this document and we do not have any obligation to publicly update any "forward-looking statements" to reflect subsequent events or circumstances, except as required by law.

                                                                                                                                                      
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                                                                
                                                                                                                   Three Months Ended                                                                                         Nine Months Ended
                                                                                                                        March 31,                                                                                                 March 31,
                                                                                                2017                              2016                                                2017                              2016
                                                                                    ----------------------------                         ----------------------------                        -----------------------------                        -----------------------------
                                                                                                                                                              US $ Millions, except per share amounts
                                                                                                                                                                                                                                                                                
Revenues                                                                                               $  7,564                                             $  7,228                                            $  21,752                                            $  20,680
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                
Operating expenses                                                                                       (4,763 )                                             (4,472 )                                            (13,472 )                                            (12,902 )
Selling, general and administrative                                                                        (878 )                                               (893 )                                             (2,603 )                                             (2,685 )
Depreciation and amortization                                                                              (140 )                                               (133 )                                               (410 )                                               (391 )
Impairment and restructuring charges                                                                        (37 )                                                (15 )                                               (213 )                                                (46 )
Equity (losses) earnings of affiliates                                                                      (51 )                                                 (9 )                                                (57 )                                                 38
Interest expense, net                                                                                      (310 )                                               (295 )                                               (909 )                                               (888 )
Interest income                                                                                               9                                                   12                                                   27                                                   28
Other, net                                                                              (142 )                             (32 )                            (241 )                            (226 )
                                                                                    -------------------- ------                          -------------------- ------                         -------------------- -------                         -------------------- -------
Income from continuing operations before income tax expense                                               1,252                                                1,391                                                3,874                                                3,608
  Income tax expense                                                                    (370 )                            (463 )                          (1,161 )                          (1,190 )
                                                                                    -------------------- ------                          -------------------- ------                         -------------------- -------                         -------------------- -------
Income from continuing operations                                                                           882                                                  928                                                2,713                                                2,418
  Loss from discontinued operations, net of tax                                          (12 )                              (3 )                             (19 )                              (8 )
                                                                                    -------------------- ------                          -------------------- ------                         -------------------- -------                         -------------------- -------
Net income                                                                               870                               925                             2,694                             2,410
                                                                                    -------------------- ------                          -------------------- ------                         -------------------- -------                         -------------------- -------
  Less: Net income attributable to noncontrolling interests                              (71 )                             (84 )                            (218 )                            (222 )
                                                                                    -------------------- ------                          -------------------- ------                         -------------------- -------                         -------------------- -------
Net income attributable to Twenty-First Century Fox, Inc.                                              $    799                                             $    841                                            $   2,476                                            $   2,188
stockholders
                                                                                    ==================== ======                          ==================== ======                         ==================== =======                         ==================== =======
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                
Weighted average shares:                                                                                  1,853                                                1,916                                                1,857                                                1,962
                                                                                                                                                                                                                                                                                
Income from continuing operations attributable to Twenty-First                                         $   0.44                                             $   0.44                                            $    1.34                                            $    1.12
Century Fox, Inc. stockholders per share:
                                                                                                                                                                                                                                                                                
Net income attributable to Twenty-First Century Fox, Inc.                                              $   0.43                                             $   0.44                                            $    1.33                                            $    1.12
stockholders per share:
                                                                                                                                                                                                                                                                                
                                                                                                     
CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                                            
                                                                                                                     March 31,                                           June 30,
                                                                                                                       2017                                                2016
                                                                                                           --------------------------                          --------------------------
Assets:                                                                                                                                      US $ Millions
Current assets:
Cash and cash equivalents                                                                                                     $  5,572                                            $  4,424
Receivables, net                                                                                                                 7,219                                               6,258
Inventories, net                                                                                                                 3,418                                               3,291
Other                                                                                                           529                              976
                                                                                                           -------------------- ------                         -------------------- ------
Total current assets                                                                                         16,738                           14,949
                                                                                                           -------------------- ------                         -------------------- ------
                                                                                                                                                                                            
Non-current assets:
Receivables, net                                                                                                                   538                                                 389
Investments                                                                                                                      3,679                                               3,863
Inventories, net                                                                                                                 7,725                                               7,041
Property, plant and equipment, net                                                                                               1,691                                               1,692
Intangible assets, net                                                                                                           6,579                                               6,777
Goodwill                                                                                                                        12,733                                              12,733
Other non-current assets                                                                                      1,001                              749
                                                                                                           -------------------- ------                         -------------------- ------
Total assets                                                                                                                  $ 50,684                                            $ 48,193
                                                                                                           ==================== ======                         ==================== ======
                                                                                                                                                                                            
Liabilities and Equity:
Current liabilities:
Borrowings                                                                                                                    $    107                                            $    427
Accounts payable, accrued expenses and other current liabilities                                                                 3,832                                               3,181
Participations, residuals and royalties payable                                                                                  1,663                                               1,672
Program rights payable                                                                                                           1,233                                               1,283
Deferred revenue                                                                                                621                              505
                                                                                                           -------------------- ------                         -------------------- ------
Total current liabilities                                                                                     7,456                            7,068
                                                                                                           -------------------- ------                         -------------------- ------
                                                                                                                                                                                            
Non-current liabilities:
Borrowings                                                                                                                      19,789                                              19,126
Other liabilities                                                                                                                3,826                                               3,678
Deferred income taxes                                                                                                            2,742                                               2,888
Redeemable noncontrolling interests                                                                                                619                                                 552
Commitments and contingencies
Equity:
Class A common stock, $0.01 par value                                                                                               11                                                  11
Class B common stock, $0.01 par value                                                                                                8                                                   8
Additional paid-in capital                                                                                                      12,274                                              12,211
Retained earnings                                                                                                                4,919                                               3,575
Accumulated other comprehensive loss                                                                         (2,195 )                         (2,144 )
                                                                                                           -------------------- ------                         -------------------- ------
      Total Twenty-First Century Fox, Inc. stockholders’ equity                                                                 15,017                                              13,661
Noncontrolling interests                                                                                      1,235                            1,220
                                                                                                           -------------------- ------                         -------------------- ------
      Total equity                                                                                           16,252                           14,881
                                                                                                           -------------------- ------                         -------------------- ------
Total liabilities and equity                                                                                                  $ 50,684                                            $ 48,193
                                                                                                           ==================== ======                         ==================== ======
                                                                                                                                                                                            
                                                                       
CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                  Nine Months Ended March 31,
                                                                                                       2017                               2016
                                                                                           ----------------------------                          ----------------------------
                                                                                                                              US $ Millions
Operating activities:
Net income                                                                                                    $  2,694                                              $  2,410
Less: Loss from discontinued operations, net of tax                                             (19 )                               (8 )
                                                                                           -------------------- ------                           -------------------- ------
Income from continuing operations                                                                                2,713                                                 2,418
Adjustments to reconcile income from continuing operations to cash
provided by operating activities:
  Depreciation and amortization                                                                                    410                                                   391
  Amortization of cable distribution investments                                                                    46                                                    53
  Impairment and restructuring charges                                                                             213                                                    46
  Equity-based compensation                                                                                         97                                                   152
  Equity losses (earnings) of affiliates                                                                            57                                                   (38 )
  Cash distributions received from affiliates                                                                      182                                                   225
  Other, net                                                                                                       241                                                   226
  CLT20 contract termination costs                                                                                   -                                                  (420 )
  Deferred income taxes and other taxes                                                                            (70 )                                                 373
  Change in operating assets and liabilities, net of acquisitions and
  dispositions
    Receivables                                                                                                 (1,146 )                                                (870 )
    Inventories net of program rights payable                                                                     (932 )                                                (814 )
    Accounts payable and accrued expenses                                                                          257                                                   136
    Other changes, net                                                                          350                                134
                                                                                           -------------------- ------                           -------------------- ------
Net cash provided by operating activities from continuing                                     2,418                              2,012
operations
                                                                                           -------------------- ------                           -------------------- ------
                                                                                                                                                                              
Investing activities:
  Property, plant and equipment                                                                                   (202 )                                                (156 )
  Acquisitions, net of cash acquired                                                                                 -                                                  (908 )
  Investments in equity affiliates                                                                                 (18 )                                                 (87 )
  Other investments                                                                            (148 )                             (229 )
                                                                                           -------------------- ------                           -------------------- ------
Net cash used in investing activities from continuing operations                               (368 )                           (1,380 )
                                                                                           -------------------- ------                           -------------------- ------
                                                                                                                                                                              
Financing activities:
  Borrowings                                                                                                       879                                                 1,195
  Repayment of borrowings                                                                                         (546 )                                                (502 )
  Repurchase of shares                                                                                            (619 )                                              (3,958 )
  Dividends paid and distributions                                                                                (522 )                                                (465 )
  Purchase of subsidiary shares from noncontrolling interests                                                        -                                                  (287 )
  Other financing activities, net                                                               (63 )                               11
                                                                                           -------------------- ------                           -------------------- ------
Net cash used in financing activities from continuing operations                               (871 )                           (4,006 )
                                                                                           -------------------- ------                           -------------------- ------
                                                                                                                                                                              
Net decrease in cash and cash equivalents from discontinued                                                        (21 )                                                 (15 )
operations
                                                                                                                                                                              
Net increase (decrease) in cash and cash equivalents                                                             1,158                                                (3,389 )
Cash and cash equivalents, beginning of year                                                                     4,424                                                 8,428
Exchange movement on cash balances                                                              (10 )                              (46 )
                                                                                           -------------------- ------                           -------------------- ------
Cash and cash equivalents, end of period                                                                      $  5,572                                              $  4,993
                                                                                           ==================== ======                           ==================== ======
                                                                                                                                                                              
                                                                                                                        
SEGMENT INFORMATION
                                                                                                                                                                                                                                                
                                                                                       Three Months Ended                                                                                      Nine Months Ended
                                                                                            March 31,                                                                                              March 31,
                                                                    2017                             2016                                               2017                             2016
                                                         ---------------------------                         ---------------------------                       ----------------------------                        ----------------------------
                                                                                                                                              US $ Millions
Revenues:
                                                                                                                                                                                                                                                
Cable Network Programming                                                   $ 4,024                                             $ 3,941                                           $ 11,801                                            $ 11,108
Television                                                                    1,690                                               1,299                                              4,646                                               4,064
Filmed Entertainment                                                          2,256                                               2,321                                              6,432                                               6,467
Other, Corporate and Eliminations                           (406 )                           (333 )                        (1,127 )                           (959 )
                                                         -------------------- -----                          -------------------- -----                        -------------------- ------                         -------------------- ------
Total revenues                                                              $ 7,564                                             $ 7,228                                           $ 21,752                                            $ 20,680
                                                         ==================== =====                          ==================== =====                        ==================== ======                         ==================== ======
                                                                                                                                                                                                                                                
Segment OIBDA:
                                                                                                                                                                                                                                                
Cable Network Programming                                                   $ 1,446                                             $ 1,375                                           $  4,160                                            $  3,931
Television                                                                      190                                                 125                                                757                                                 600
Filmed Entertainment                                                            373                                                 470                                              1,073                                                 921
Other, Corporate and Eliminations                            (71 )                            (89 )                          (267 )                           (306 )
                                                         -------------------- -----                          -------------------- -----                        -------------------- ------                         -------------------- ------
Total Segment OIBDA (a)                                                     $ 1,938                                             $ 1,881                                           $  5,723                                            $  5,146
                                                         ==================== =====                          ==================== =====                        ==================== ======                         ==================== ======
                                                                                                                                                                                                                                                
Depreciation and amortization:
                                                                                                                                                                                                                                                
Cable Network Programming                                                   $    87                                             $    79                                           $    252                                            $    229
Television                                                                       28                                                  29                                                 85                                                  88
Filmed Entertainment                                                             19                                                  20                                                 59                                                  60
Other, Corporate and Eliminations                              6                                5                              14                               14
                                                         -------------------- -----                          -------------------- -----                        -------------------- ------                         -------------------- ------
Total depreciation and amortization                                         $   140                                             $   133                                           $    410                                            $    391
                                                         ==================== =====                          ==================== =====                        ==================== ======                         ==================== ======
                                                                                                                                                                                                                                                
    (a)   Total segment OIBDA may be considered a non-GAAP financial
                                                                   measure. See page 11 for a description of total segment OIBDA and
                                                                   for a reconciliation from income from continuing operations before
                                                                   income tax expense to total segment OIBDA.
                                                                    
 
CONSOLIDATED REVENUES BY COMPONENT
                                                                                                                     
                                                                            Three Months Ended                                                                                                                                 Nine Months Ended
                                                                                 March 31,                                                                                                                                         March 31,
                                                2017                           2016                                                                  2017                                   2016
                                     ---------------------------                                          ---------------------------                                          ----------------------------                                          ------------------------------------------
                                                                                                                                                            US $ Millions
                                                                                                                                                                                                                                                                           
Affiliate fees                                          $ 3,160                                                              $ 2,939                                                              $  8,989                                                              $                8,321
Advertising                                               2,203                                                                1,907                                                                 6,338                                                                               5,950
Content                                                   2,078                                                                2,288                                                                 5,979                                                                               6,046
Other                                    123                                                94                                                446                                                              363
                                     -------------------- -----                                           -------------------- -----                                           -------------------- ------                                           -------------------- --------------------
Total revenues                                          $ 7,564                                                              $ 7,228                                                              $ 21,752                                                              $               20,680
                                     ==================== =====                                           ==================== =====                                           ==================== ======                                           ==================== ====================
                                                                                                                                                                                                                                                                           

NOTE 1 - TOTAL SEGMENT OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

The Company evaluates the performance of its operating segments based on segment operating income before depreciation and amortization ("OIBDA"), and management uses total segment OIBDA as a measure of the performance of operating businesses separate from non-operating factors. Total segment OIBDA may be considered a non-GAAP measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements. This measure excludes items, such as depreciation and amortization as well as impairment charges, which are significant components in assessing the Company’s financial performance.

Management believes that total segment OIBDA is an appropriate measure for evaluating the operating performance of the Company’s business and provides investors and equity analysts a measure to analyze operating performance of the Company’s business and enterprise value against historical data and competitors’ data. Segment OIBDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources to the Company’s business segments.

Segment OIBDA does not include depreciation and amortization and the amortization of cable distribution investments and eliminates the variable effect across all business segments of depreciation and amortization. Depreciation and amortization expense includes the depreciation of property and equipment, as well as amortization of finite-lived intangible assets. Amortization of cable distribution investments represents a reduction against revenues over the term of a carriage arrangement and, as such, it is excluded from segment operating income before depreciation and amortization.

In addition, total segment OIBDA does not include: Loss from discontinued operations, net of tax, Impairment and restructuring charges, Equity (losses) earnings of affiliates, Interest expense, net, Interest income, Other, net, Income tax expense and Net income attributable to noncontrolling interests.

The following table reconciles income from continuing operations before income tax expense to total segment OIBDA:

                                                                                            Three Months Ended                                                                  Nine Months Ended
                                                                                                                    March 31,                                                                                             March 31,
                                                                                            2017                             2016                                              2017                            2016
                                                                                 ---------------------------                         ---------------------------                       ---------------------------                        ---------------------------
                                                                                                                                                                     US $ Millions
Income from continuing operations before income tax expense                                         $ 1,252                                             $ 1,391                                           $ 3,874                                            $ 3,608
Add:
  Amortization of cable distribution investments                                                         15                                                  18                                                46                                                 53
  Depreciation and amortization                                                                         140                                                 133                                               410                                                391
  Impairment and restructuring charges                                                                   37                                                  15                                               213                                                 46
  Equity losses (earnings) of affiliates                                                                 51                                                   9                                                57                                                (38 )
  Interest expense, net                                                                                 310                                                 295                                               909                                                888
  Interest income                                                                                        (9 )                                               (12 )                                             (27 )                                              (28 )
  Other, net                                                                         142                               32                            241                             226
                                                                                 -------------------- -----                          -------------------- -----                        -------------------- -----                         -------------------- -----
Total Segment OIBDA                                                                                 $ 1,938                                             $ 1,881                                           $ 5,723                                            $ 5,146
                                                                                 ==================== =====                          ==================== =====                        ==================== =====                         ==================== =====
                                                                                                                                                                                                                                                                      
                                   
                                                                                                                                            Three Months Ended March 31, 2017
                                                                                                                                                      US $ Millions                                                                                                
                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Revenues                        Operating and                         Add:                        Segment OIBDA
                                                                                                                 Selling, general                                       Amortization
                                                                                                                        and                                               of cable
                                                                                                                  administrative                                        distribution
                                                                                                                     expenses                                            investments
                                                       -------------------------                          ----------------------------                          --------------------------                                            --------------------------
Cable Network Programming                                                 $ 4,024                                            $   (2,593 )                                          $     15                                                              $  1,446
Television                                                                  1,690                                                (1,500 )                                                 -                                                                   190
Filmed Entertainment                                                        2,256                                                (1,883 )                                                 -                                                                   373
Other, Corporate and Eliminations                         (406 )                              335                                -                                                (71 )
                                                       -------------------- -----                         -------------------- --------                         -------------------- ------                                           -------------------- ------
Consolidated Total                                                        $ 7,564                                            $   (5,641 )                                          $     15                                                              $  1,938
                                                       ==================== =====                         ==================== ========                         ==================== ======                                           ==================== ======
                                                                                                                                                                                                                                                                   
                                                                                                                         Three Months Ended March 31, 2016
                                                                                                                                                      US $ Millions                                                                                                
                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Revenues                        Operating and                         Add:                        Segment OIBDA
                                                                                                                 Selling, general                                       Amortization
                                                                                                                        and                                               of cable
                                                                                                                  administrative                                        distribution
                                                                                                                     expenses                                            investments
                                                       -------------------------                          ----------------------------                          --------------------------                                            --------------------------
Cable Network Programming                                                 $ 3,941                                            $   (2,584 )                                          $     18                                                              $  1,375
Television                                                                  1,299                                                (1,174 )                                                 -                                                                   125
Filmed Entertainment                                                        2,321                                                (1,851 )                                                 -                                                                   470
Other, Corporate and Eliminations                         (333 )                              244                                -                                                (89 )
                                                       -------------------- -----                         -------------------- --------                         -------------------- ------                                           -------------------- ------
Consolidated Total                                                        $ 7,228                                            $   (5,365 )                                          $     18                                                              $  1,881
                                                       ==================== =====                         ==================== ========                         ==================== ======                                           ==================== ======
                                                                                                                                                                                                                                                                   
                                   
                                                                                                                                             Nine Months Ended March 31, 2017
                                                                                                                                                       US $ Millions
                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Revenues                        Operating and                         Add:                        Segment OIBDA
                                                                                                                  Selling, general                                       Amortization
                                                                                                                         and                                               of cable
                                                                                                                   administrative                                        distribution
                                                                                                                      expenses                                            investments
                                                       --------------------------                          ----------------------------                          --------------------------                                            --------------------------
Cable Network Programming                                                 $ 11,801                                            $   (7,687 )                                          $     46                                                              $  4,160
Television                                                                   4,646                                                (3,889 )                                                 -                                                                   757
Filmed Entertainment                                                         6,432                                                (5,359 )                                                 -                                                                 1,073
Other, Corporate and Eliminations                        (1,127 )                              860                                -                                               (267 )
                                                       -------------------- ------                         -------------------- --------                         -------------------- ------                                           -------------------- ------
Consolidated Total                                                        $ 21,752                                            $  (16,075 )                                          $     46                                                              $  5,723
                                                       ==================== ======                         ==================== ========                         ==================== ======                                           ==================== ======
                                                                                                                          Nine Months Ended March 31, 2016
                                                                                                                                                       US $ Millions
                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Revenues                        Operating and                         Add:                        Segment OIBDA
                                                                                                                  Selling, general                                       Amortization
                                                                                                                         and                                               of cable
                                                                                                                   administrative                                        distribution
                                                                                                                      expenses                                            investments
                                                       --------------------------                          ----------------------------                          --------------------------                                            --------------------------
Cable Network Programming                                                 $ 11,108                                            $   (7,230 )                                          $     53                                                              $  3,931
Television                                                                   4,064                                                (3,464 )                                                 -                                                                   600
Filmed Entertainment                                                         6,467                                                (5,546 )                                                 -                                                                   921
Other, Corporate and Eliminations                          (959 )                              653                                -                                               (306 )
                                                       -------------------- ------                         -------------------- --------                         -------------------- ------                                           -------------------- ------
Consolidated Total                                                        $ 20,680                                            $  (15,587 )                                          $     53                                                              $  5,146
                                                       ==================== ======                         ==================== ========                         ==================== ======                                           ==================== ======
                                                                                                                                                                                                                                                                    

NOTE 2 - ADJUSTED NET INCOME AND ADJUSTED EPS FROM CONTINUING OPERATIONS

The calculation of income and earnings per share ("EPS") from continuing operations attributable to 21st Century Fox stockholders excluding the net income effects of Impairment and restructuring charges, Equity affiliate adjustments and Other, net and tax provision effects ("adjusted income and diluted EPS from continuing operations attributable to 21st Century Fox stockholders") may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted income and diluted EPS from continuing operations attributable to 21st Century Fox stockholders are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income and EPS as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The Company uses adjusted income and diluted EPS from continuing operations attributable to 21st Century Fox stockholders to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period.

The following table reconciles reported income and reported diluted EPS from continuing operations attributable to 21st Century Fox stockholders to adjusted income and diluted EPS from continuing operations attributable to 21st Century Fox stockholders for the three months ended March 31, 2017 and 2016.

                                                                                                                                                                                Three Months Ended
                                                                                                                                   March 31, 2017                                                                                                   March 31, 2016
                                                                                    ------------------------------------------------------------------------------------------------------------                        ------------------------------------------------------------------------------------------------------------
                                                                                                      Income                                           EPS                                                             Income                                           EPS
                                                                                    ------------------------------------------                        ------------------------------------------                        ------------------------------------------                        ------------------------------------------
                                                                                                                                                                                          US $ Millions, except per share data
Income from continuing operations                                                                      $                  882                                                                                                              $                  928
Less: Net income attributable to noncontrolling interests                                              (71 )                                                                                                            (84 )
                                                                                    -------------------- --------------------                                                                                           -------------------- --------------------
Income from continuing operations attributable to Twenty-First                                         $                  811                                            $                 0.44                                            $                  844                                            $                 0.44
Century Fox, Inc. stockholders
                                                                                                                                                                                                                                                                                                                                     
Impairment and restructuring charges                                                                                       37                                                              0.02                                                                15                                                              0.01
                                                                                                                                                                                                                                                                                                                                     
Equity affiliate adjustments(a)                                                                                            90                                                              0.05                                                                42                                                              0.02
                                                                                                                                                                                                                                                                                                                                     
Other, net                                                                                                                142                                                              0.08                                                                32                                                              0.02
                                                                                                                                                                                                                                                                                                                                     
Tax provision                                                                                                             (76 )                                                           (0.04 )                                                             (26 )                                                           (0.01 )
                                                                                                                                                                                                                                                                                                                                     
Rounding                                                                                                                    -                                                             (0.01 )                                                               -                                                             (0.01 )
                                                                                                                                                                           
                                                                                    -------------------- --------------------                         -------------------- --------------------                         -------------------- --------------------                         -------------------- --------------------
As adjusted                                                                                            $                1,004                                            $                 0.54                                            $                  907                                            $                 0.47
                                                                                    ==================== ====================                         ==================== ====================                         ==================== ====================                         ==================== ====================
                                                                                                                                                                                                                                                                                                                                     
    (a)   Equity losses of affiliates for the three months ended March
                                                                   31, 2017 was adjusted to remove from Sky’s results 21st Century
                                                                   Fox’s share of Sky’s restructuring and purchase price amortization
                                                                   related to its acquisition of the Direct Broadcast Satellite
                                                                   ("DBS") businesses from the Company and from Endemol Shine Group’s
                                                                   results 21st Century Fox’s share of Endemol Shine Group’s
                                                                   impairment, restructuring and debt revaluation adjustments. Equity
                                                                   losses of affiliates for the three months ended March 31, 2016 was
                                                                   adjusted to remove from Sky’s results 21st Century Fox’s share of
                                                                   Sky’s purchase price amortization related to its acquisition of
                                                                   the DBS businesses from the Company and from Endemol Shine Group’s
                                                                   results 21st Century Fox’s share of Endemol Shine Group’s debt
                                                                   revaluation and other discrete costs.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170510006546r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170510006546/en/

SOURCE: Twenty-First Century Fox, Inc."> <Property FormalName="PrimaryTwitterHandle" Value="@21CF

Twenty-First Century Fox, Inc. 
Investor Relations: 
Reed Nolte, 212-852-7092 
Mike Petrie, 212-852-7130 
or 
Press Inquiries: 
Julie Henderson, 310-369-0773 
Nathaniel Brown, 212-852-7746


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