Twenty-First Century Fox Inc. (NASDAQ:FOX)

Segment OIBDA

The segment OIBDA demonstrated a consistent upward trajectory over the six-year period. It rose from $4,177 million in 2013 to $6,173 million in 2018, indicating a solid growth trend. The increase was steady each year, reflecting improving operational earnings before depreciation and amortization.

Revenues

Revenues for this segment also exhibited significant growth from $10,881 million in 2013 to $17,946 million in 2018. The increase was substantial and consistent annually, suggesting strong sales expansion and possible market share gains within the cable network programming sector over the period considered.

Segment Profit Margin

The segment profit margin showed a declining trend from 38.39% in 2013 to 33.75% in 2015, followed by a modest recovery, stabilizing around 34.4% by 2018. Despite the uptick in revenues and OIBDA, the margin compression from 2013 to 2015 indicates increasing costs or pricing pressures, with only partial margin recovery thereafter.

Overall Insights

While the segment experienced robust revenue and OIBDA growth throughout the period, the decreasing and then stabilizing profit margin suggests challenges in improving operating efficiency or cost control relative to revenue growth. This dynamic underscores the importance of managing expenses to sustain profitability amid expanding revenues.

The financial data of the Television reportable segment indicates notable fluctuations in key performance metrics over the six-year period ending June 30, 2018.

Segment OIBDA

The Operating Income Before Depreciation and Amortization demonstrates variability without a consistent upward or downward trend. After an increase from 855 million USD in 2013 to 882 million USD in 2014, it declined to 718 million USD in 2015. This was followed by a modest recovery to 744 million USD in 2016 and further growth to 894 million USD in 2017. However, the figure sharply decreased to 362 million USD in 2018, representing a substantial drop compared to previous years.

Revenues

Revenue figures show a somewhat cyclical pattern with general growth initially followed by volatility. Revenue rose from 4,860 million USD in 2013 to a peak of 5,296 million USD in 2014, then fell to 4,895 million USD in 2015. Subsequently, it increased again to 5,105 million USD in 2016 and grew significantly to 5,649 million USD in 2017 before declining to 5,162 million USD in 2018. The overall revenue trend shows moderate growth with short-term setbacks.

Segment Profit Margin

The segment profit margin reveals a steady decrease from 17.59% in 2013 to 14.57% in 2016, followed by a slight recovery to 15.83% in 2017. Nonetheless, in 2018, there is a pronounced decline to 7.01%, less than half of the highest margin observed in 2013. This significant reduction in profit margin aligns with the substantial drop in OIBDA during the same period.

In summary, the Television segment experienced fluctuations in profitability and revenue over the analyzed period. Despite generally healthy revenue levels, the drastic decline in both segment OIBDA and profit margin in 2018 signals potential profitability challenges that may require further investigation. The data suggests that while revenue remained relatively resilient, operational efficiency or cost management may have deteriorated, impacting overall segment profitability substantially in the final year reported.

The analysis of the "Filmed Entertainment" segment data over the six-year period ending June 30, 2018, reveals several important trends concerning revenues, segment OIBDA, and profit margins.

Revenues

Revenues showed a generally fluctuating pattern. After an initial increase from 8,642 million USD in 2013 to a peak of 9,679 million USD in 2014, revenues decreased slightly to 9,525 million USD in 2015. Subsequently, there was a notable decline over the next two years, reaching 8,235 million USD in 2017. The final period saw a moderate recovery to 8,747 million USD in 2018. Overall, the revenue peak occurred in 2014, followed by a downward trend and slight rebound toward the end of the observed timeframe.

Segment OIBDA

Segment OIBDA exhibited a similar pattern to revenues but with more pronounced declines in later years. Starting at 1,308 million USD in 2013, there was a steady increase to 1,445 million USD by 2015. However, a sharp decrease followed, with OIBDA falling to 1,085 million USD in 2016, and continuing to decline through 2017 and 2018, reaching 962 million USD. This indicates a deterioration of operating income relative to the earlier peak in 2015.

Segment Profit Margin

The profit margin, representing operating income as a percentage of revenues, generally declined over the period. It started at a high of 15.14% in 2013 and slightly fell to 14.03% in 2014. After a brief improvement to 15.17% in 2015, the margin reduced noticeably in subsequent years, dropping to 12.76% in both 2016 and 2017, and further decreasing to 11% in 2018. This trend underscores decreasing profitability relative to revenues within the segment.

In summary, the segment experienced a peak in financial performance around 2014-2015, with both revenues and segment OIBDA reaching their highest values during this period. Post-2015, both revenues and operating income contracted significantly, adversely affecting the segment's profitability as reflected in declining profit margins. Despite a slight upturn in revenues in 2018, the continued decrease in segment OIBDA and profit margins suggests increasing cost pressures or operational challenges that impacted overall segment profitability.

Segment OIBDA

The segment's Operating Income Before Depreciation and Amortization (OIBDA) exhibited a consistent upward trend from 2013 to 2018. The value increased steadily each year, rising from $4,177 million in 2013 to $6,173 million in 2018. This reflects a compound growth pattern, indicating improving operational profitability within the cable network programming segment over the period analyzed.

Assets

The total assets associated with the segment also showed an overall increase during the same timeframe, although the growth was less consistent compared to OIBDA. Assets rose from $17,830 million in 2013 to $25,756 million in 2018. There was a notable jump between 2013 and 2014, with more moderate increases in the following years, and a slight dip in 2017 before rebounding in 2018.

Segment ROA

Return on Assets (ROA) for the segment experienced some variability but generally reflected positive movement after an initial decline. Starting at 23.43% in 2013, ROA fell to 19.65% in 2014 but then steadily recovered, reaching 23.97% by 2018. This suggests improvements in asset efficiency and profitability management in the latter years, eventually surpassing the initial 2013 level.

Overall Insights

The data indicates continued growth in operational income alongside increasing asset bases, with the segment improving its efficiency as measured by ROA after a temporary decline. The steady rise in OIBDA combined with rising ROA in the latter years points to enhanced profitability and asset utilization within the cable network programming segment.

The analysis of the annual data for the television segment reveals several notable trends across the observed periods.

Segment OIBDA (Operating Income Before Depreciation and Amortization)

The operating income before depreciation and amortization experienced fluctuations over the years. Starting at 855 million US dollars in 2013, it slightly increased to 882 million in 2014, but subsequently declined to 718 million in 2015. A modest recovery followed, with OIBDA reaching 744 million in 2016 and rising more substantially to 894 million in 2017. In 2018, there was a significant decrease to 362 million, marking the lowest point in the series and indicating volatility in segment profitability.

Assets

Assets showed a generally stable to slightly increasing trend over the six-year span. Beginning at 6,415 million US dollars in 2013, the asset base steadily grew to 6,449 million in 2014, then to 6,646 million in 2015 and 6,959 million in 2016. A slight decrease was noted in 2017 to 6,775 million, but assets remained close to prior years' levels with a minor uptick to 6,779 million in 2018. Overall, the asset growth was moderate and stable without considerable fluctuations.

Segment Return on Assets (ROA)

The segment ROA metric exhibited a declining trend with some recovery before a sharp drop. The ROA was 13.33% in 2013 and slightly increased to 13.68% in 2014, indicating an improvement in profitability relative to assets. However, it declined notably to 10.8% in 2015 and remained nearly flat at 10.69% in 2016. There was an upturn in 2017, with ROA rising to 13.2%, suggesting better asset utilization and profit generation. The most significant change occurred in 2018, where ROA dropped drastically to 5.34%, signaling a significant deterioration in asset profitability relative to previous years.

In summary, while the asset base has remained relatively stable with mild growth, operating profitability and returns on assets have been more volatile. The marked decline in both segment OIBDA and ROA in 2018 indicates potential operational challenges or external factors adversely impacting segment performance during that year. Prior to 2018, the segment showed periods of recovery and growth, notably in 2014 and 2017, but the overall trend signals increased uncertainty and a decrease in efficiency in the most recent period observed.

The analysis of the annual data for the Filmed Entertainment segment reveals notable trends in operating income, asset base, and return on assets over the six-year period ending June 30, 2018.

Segment Operating Income Before Depreciation and Amortization (OIBDA)

The segment OIBDA initially increased from 1308 million US dollars in 2013 to a peak of 1445 million in 2015. After reaching this high point, there was a consistent decline over the next three years, falling to 1085 million in 2016, 1051 million in 2017, and further down to 962 million by 2018. This pattern indicates a weakening profitability trend within the segment following the 2015 peak.

Assets

The asset base showed fluctuations over the period, starting at 9411 million US dollars in 2013 and increasing to 10419 million in 2014. It then declined to 9105 million in 2015 before steadily rising again over the next three years, reaching 10646 million by 2018. Overall, the assets demonstrate a moderate upward trend, although there was a noticeable dip in 2015.

Segment Return on Assets (ROA)

The ROA metric declined gradually during the examined years, moving from 13.9% in 2013 to 9.04% in 2018. Though there was a slight dip from 13.9% to 13.03% between 2013 and 2014, it recovered somewhat in 2015 to 15.87%. However, after 2015, ROA steadily decreased each year, reflecting diminished efficiency in generating returns from the asset base over time.

In summary, the segment experienced a peak in operating profitability in 2015, followed by a steady decline through to 2018, whereas the asset base showed some variability but generally increased toward the end of the period. Concurrently, the return on assets decreased steadily after 2015, which may indicate challenges in leveraging assets effectively to maintain previous levels of profitability.

Revenues

Revenues exhibited a consistent upward trajectory from 2013 through 2018, increasing from $10,881 million to $17,946 million. This represents a substantial growth over the six-year period, with the most notable annual increases occurring in the later years, reflecting a sustained expansion in the segment's income generation capabilities.

Assets

Assets increased steadily from $17,830 million in 2013 to $25,756 million in 2018. The growth in assets was most pronounced between 2013 and 2014, followed by more moderate increases in subsequent years. The overall increase indicates ongoing investment or accumulation of resources in the segment.

Segment Asset Turnover

The segment asset turnover ratio, measuring the efficiency of asset utilization to generate revenues, showed a fluctuating but generally positive trend. Beginning at 0.61 in 2013, it dipped to 0.55 in 2014 before recovering and rising progressively to 0.7 by 2018. This upward movement in the later years suggests improving operational efficiency and better leveraging of assets to produce higher revenues.

Revenues

The revenues exhibited variability over the six-year period. Starting at 4,860 million US dollars in 2013, revenues increased to a peak of 5,296 million in 2014. A decline was observed in 2015 to 4,895 million, followed by a modest recovery in 2016 reaching 5,105 million. The highest revenue during this period was recorded in 2017 at 5,649 million, before decreasing to 5,162 million in 2018. Overall, the revenue trend shows fluctuations with a general tendency to grow until 2017, then slightly decreasing.

Assets

Total assets steadily increased from 6,415 million US dollars in 2013 to a maximum of 6,959 million in 2016. Afterward, there was a marginal decline to 6,775 million in 2017, which remained nearly constant into 2018 at 6,779 million. The asset base thus expanded over the initial years, followed by stabilization and slight reduction in the latter years.

Segment Asset Turnover

The segment asset turnover ratio, which measures the efficiency in using assets to generate revenues, fluctuated throughout the period. Beginning at 0.76 in 2013, it increased to 0.82 in 2014. Subsequently, it decreased to 0.74 in 2015 and further to 0.73 in 2016. The ratio rebounded notably to 0.83 in 2017, closely aligning with the peak revenue year. However, in 2018, the turnover fell back to 0.76, matching the initial level in 2013. This pattern suggests variability in the effectiveness of asset utilization, with notable improvement in 2017.

Overall Analysis

The segment demonstrated growth in revenues and assets primarily until 2016-2017, with the highest revenues and asset turnover recorded in 2017. The data suggests cyclical performance with occasional declines in revenue and asset turnover. After 2017, revenues and efficiency indicators decreased, coinciding with relatively stable asset levels. These variations highlight fluctuations in operational performance and asset utilization efficiency within the reporting period.

The analysis of the annual financial data for the Filmed Entertainment segment reveals several important trends pertaining to revenues, assets, and asset turnover ratios over the six-year period from June 30, 2013, to June 30, 2018.

Revenues

Revenues exhibit fluctuations with an overall moderate variability during the period. Starting at $8,642 million in 2013, there was a notable increase reaching a peak of $9,679 million in 2014. This was followed by a slight decline in 2015 to $9,525 million. Subsequently, revenues decreased more significantly in 2016 and 2017, falling to $8,505 million and $8,235 million respectively. In 2018, revenues rebounded modestly to $8,747 million. The pattern suggests an initial period of growth followed by contraction and a slight recovery.

Assets

Segment assets demonstrated variability across the years. The value started at $9,411 million in 2013 and increased to a high of $10,419 million in 2014. However, assets declined to $9,105 million in 2015, indicating a reduction in invested resources. The asset base increased again in subsequent years, reaching $9,579 million in 2016, $10,312 million in 2017, and finally peaking at $10,646 million in 2018. This pattern shows an overall upward trend in asset levels despite the mid-period dip.

Segment Asset Turnover Ratio

The asset turnover ratio, which measures the efficiency of asset usage in generating revenues, fluctuated notably over the period. Starting at 0.92 in 2013, it remained relatively stable at 0.93 in 2014 but increased to 1.05 in 2015, indicating improved efficiency that year. However, from 2016 onward, the ratio declined, reaching 0.89 in 2016, 0.80 in 2017, and slightly increasing to 0.82 in 2018. The declining trend from 2016 to 2018 suggests decreasing efficiency in the use of assets to generate revenue during these years.

Capital Expenditures

Capital expenditures displayed an overall increasing trend during the period from June 30, 2013, to June 30, 2018. Starting at $88 million in 2013, expenditures rose to $131 million in 2014, followed by a slight decline to $106 million in 2015. Subsequently, there was a steady increase to $132 million in 2016 and $169 million in 2017, culminating in a significant jump to $293 million in 2018.

Depreciation and Amortization

This expense category showed a consistent upward trajectory over the six-year period. Beginning at $197 million in 2013, it increased each year to reach $351 million by 2018. The growth was relatively steady, with the largest increments occurring between 2014 to 2015 and then continuing a moderate rise thereafter.

Segment Capital Expenditures to Depreciation Ratio

The ratio measuring capital expenditures relative to depreciation and amortization exhibited some volatility. It started at 0.45 in 2013, increased to 0.56 in 2014, then declined to a low of 0.36 in 2015. Afterwards, it gradually improved to 0.42 in 2016 and 0.50 in 2017, before sharply rising to 0.83 in 2018. This indicates that by 2018, capital expenditures had grown substantially in proportion to depreciation expense compared to earlier years.

The analysis of the television segment's capital expenditures and depreciation data reveals several key trends over the six-year period ending June 30, 2018.

Capital Expenditures

Capital expenditures demonstrated a declining trajectory from 2013 through 2017, decreasing from 103 million US dollars to 73 million US dollars. The downward trend suggests a reduction in investment or maintenance spending in the earlier years. However, in 2018, capital expenditures increased to 89 million US dollars, indicating a potential strategic shift toward higher investment or upgrading of assets.

Depreciation and Amortization

This expense showed a consistent upward trend from 2013, starting at 93 million US dollars and peaking at 118 million US dollars by 2016. Following this peak, a slight decline occurred, with the expense reducing to 110 million US dollars in 2018. The initial increase likely reflects prior capital investments becoming subject to amortization, and the subsequent decrease may suggest slower asset aging or disposal of depreciated assets.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation declined notably from 1.11 in 2013 to a low of 0.64 in both 2016 and 2017. This decline highlights a period where capital spending was insufficient to keep pace with asset depreciation, potentially signaling a reduction in asset base or deferred investment. In 2018, the ratio rose to 0.81, indicating an increased pace of capital investment relative to asset depreciation, though it remained below the 2013 level.

Overall, the data indicate that the segment experienced a period of reduced capital investment relative to asset depreciation between 2013 and 2017, which may have implications for future asset base sustainability. The uptick in capital expenditures and the accompanying increase in the capital expenditure to depreciation ratio in 2018 suggest a possible reinvestment phase aimed at enhancing or renewing the asset base.

Capital Expenditures Trend

Capital expenditures experienced a decline from 63 million USD in 2013 to 45 million USD in 2015 and 2016, indicating a period of reduced investment. However, a recovery occurred starting in 2017, with expenditures increasing to 48 million USD and then sharply rising to 89 million USD in 2018, more than doubling from the previous year.

Depreciation and Amortization Trend

Depreciation and amortization expenses showed a consistent downward trend from 132 million USD in 2013 to 80 million USD in 2017, reflecting either asset base reduction or changes in amortization schedules. In 2018, this trend slightly reversed, with expenses increasing to 88 million USD.

Capital Expenditures to Depreciation Ratio

The ratio of segment capital expenditures to depreciation decreased from 0.48 in 2013 to a low of 0.42 in 2015, indicating that capital spending was considerably lower relative to depreciation. From 2016 onward, the ratio increased steadily, reaching 0.6 in 2017 and then surging to 1.01 in 2018. This surpasses depreciation expenses, suggesting a significant ramp-up in investment relative to asset consumption.

Overall Insights

The data shows a clear shift in investment strategy around 2017 and 2018, with capital expenditures increasing sharply after a multi-year decline. This shift may indicate a rejuvenation of the asset base or preparation for future growth. Simultaneously, the reduced depreciation expenses until 2017, followed by a modest increase in 2018, align with the timing of increased capital spending. The surpassing of capital expenditures over depreciation in 2018 marks a notable change in asset management dynamics within the segment.