A Deal For Twenty-First Century Fox Inc (NASDAQ:FOXA)’s Shareholders

Boston, MA 08/26/2014 (wallstreetpr) – Twenty-First Century Fox Inc (NASDAQ:FOXA) failed to make an $80 billion deal with Time Warner Inc (NYSE:TWX) in what would have resulted in a giant media conglomerate. However, there is a deal for the shareholders of FOXA, and that is good news because it should be. FOXA abandoned its pursuit of Time Warner Time Warner Inc (NYSE:TWX), its board moved to increase the amount of money that they intend to return to the shareholders.

Affiliate fees and the trend

Therefore, instead of the $4 billion that was originally allocated to repurchase shares within 12 months, now the company has earmarked $6 billion for the buyback program. That means that there is so much more that is coming in the way of the shareholders. There is also a performance trend at Twenty-First Century Fox Inc (NASDAQ:FOXA) that suggests that better things are still ahead for the shareholders. In the most earnings reporting, the media giant portrayed an increasing trend in its Affiliate fees and the trend dates back to the last couple of years. It is worth taking note that Affiliate is a major contributor to the company’s total revenue and increase in that segment signals better things for the top line. In fiscal 2014, reported early this month, Affiliate fees contributed 28.2% of the total revenue for the fiscal year. That was an improvement from 28% in fiscal 2013, 25% in fiscal 2012 and 22% in fiscal 2011.

Upbeat outlook

Following the robust 4Q2014 and 2014 performance, the management of Twenty-First Century Fox Inc (NASDAQ:FOXA) provided an upbeat guidance for fiscal 2015. As such, Ebitda is expected to increase in high-single digit band over $6.29 billion that was achieved in fiscal 2014. The management also guided that the Cable segment will deliver higher Ebitda growth at a high single to low double-digit in fiscal 2015.

The anticipated growth in Ebitda and Affiliate fees revenue are some of the encouraging reports from Twenty-First Century Fox Inc (NASDAQ:FOXA) that should keep investors hoping for the best into the future.

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Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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