21st Century Fox Incurs Record 1Q18 Operating Expenses- Sale of Assets to Cope?

    Author Jen JiangPosted on Categories Entertainment, ConsumerTags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
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    During fiscal 1Q18, 21st Century Fox (NASDAQ:FOX) incurred higher operating expenses than that of in fiscal 1Q17. The total number? Higher than $5.7 billion. Further, marketing and sales spending also rose.

    Fox is speculated to be in the process of selling a portion of its entertainment business, including its film and television production studio. So far, the interested buyers include Walt Disney (NASDAQ:DIS), Comcast (NASDAQ:CMCSA), and Verizon (NASDAQ:VZ).

    Such sale of a large portion of the entertainment business could render Fox a much leaner company capable of executing faster response rate to the threat of cord-cutting.

    Traditional pay-TV companies have been rattled by the cord-cutting trend, as households are foregoing conventional pay-TV packages in favor of video streaming services delivered over the Internet, or over-the-top (OTT) video content.

    In 3Q17, AT&T (NASDAQ:T), Dish Network (NASDAQ:DISH), and Charter Communications (NASDAQ:CHTR) shed 385,000, 129,00, and 104,000 pay-TV subscribers, respectively.

    Hence, a sale of assets could assist Fox in raising funds to repay its outstanding debt. The company was carrying a total debt of $19.8 billion on its balance sheet at the end of fiscal 1Q18. It posted total debt of $19.9 billion at the end of fiscal 1Q17.

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    Author Jen Jiang
    About the author: Jennifer is a University of Western Ontario graduate with a degree in International Business. She strives to excel as a content creator in the digital sphere, working with clients in the Finance and Tech industry to leverage clickable taglines, images, and articles in driving traffic. When not writing, Jennifer enjoys photography, copywriting, and video production.