Sky Italia subscribers down another 21,000 in 3Q 2014

Tuesday, November 4th, 2014
Twenty-First Century Fox logo

NEW YORK, NY — Twenty-First Century Fox Inc. (“21st Century Fox” or the “Company” — NASDAQ: FOXA, FOX) today reported financial results for the three months ended September 30, 2014.

Direct Broadcast Satellite Television

Direct Broadcast Satellite Television generated quarterly segment OIBDA of $207 million compared with the $190 million reported in the same period a year ago. This increase reflects a $59 million or 4% revenue increase primarily due to Sky Deutschland subscriber growth, partially offset by higher sports programming costs including SKY Italia’s broadcast of the FIFA World Cup.

Sky Deutschland grew net direct subscribers by approximately 96,000 during the quarter, bringing total direct subscribers to 3.91 million, while SKY Italia’s subscriber base declined by 21,000 during the quarter bringing total subscribers to 4.70 million.

SKY Italia subscribers:

                  4Q         3Q         2Q         1Q
           ---------  ---------  ---------  ---------
Total                 4,700,000  4,730,000  4,750,000
Net Adds               (21,000)   (25,000)   (10,000)

                  4Q         3Q         2Q         1Q
           ---------  ---------  ---------  ---------
Total      4,760,000  4,760,000  4,760,000  4,780,000
Net Adds           0          0   (27,000)   (51,000)

Sky Italia and Sky Deutschland

In July 2014, the Company entered into agreements with BSkyB to sell its 100% and 57% (on a fully diluted basis) ownership stakes in Sky Italia and Sky Deutschland AG (“Sky Deutschland”), respectively, for approximately $8.7 billion (based on foreign currency exchange rates as of September 30, 2014) comprised of approximately $8.1 billion in cash and the transfer to the Company of BSkyB’s 21% interest in National Geographic Channels International, increasing the Company’s ownership stake to 73%. In connection with this transaction, the Company participated in BSkyB’s equity offering in July 2014 by purchasing additional shares in BSkyB for approximately $900 million and maintained the Company’s 39% ownership interest. The agreements are subject to customary closing conditions. The sale is expected to be completed in the second quarter of fiscal 2015, and, upon completion, Sky Italia and Sky Deutschland will thereafter cease to be consolidated subsidiaries of the Company.