Election ratings bump boosts Fox earnings

2016's volatile campaign has come with a dramatic increase in political advertising spending...

Election ratings bump boosts Fox earnings

Chris Carlson AP/Press Association Images

21st Century Fox Inc has posted first-quarter profits which beat analysts' earning expectations.

Revenue for the group's cable division, which includes Fox News and FX, enjoyed a 10% revenue increase, growing to $3.81bn in its first quarter.

Its chief executive James Murdoch said that he expects that its affiliate fees will increase due to the large audiences that it has drawn throughout both the primary battles and the 2016 presidential campaign. He added that "significant renewals" are on the horizon.

It also reports that there has been an increase in local political advertising on Fox stations.

Fox News is the most watched broadcast news outlet in the United States.

"Of course Fox News has never been stronger amidst an intense election season. It just marked 59th consecutive quarter as the number one in cable news and just finished October as the number network in both prime time and all day across all of cable," the group said during its earnings call.

Box Office hits including Independence Day: Resurgence and X-Men: Apocalypse during the summer months helped its film studios to post a 6.8% increase in revenue in the three months to the end of September.

Mr Murdoch stated that the proposed merger of AT&T and Time Warner has not affected Fox's plans.

He also reports that it is not moving to create a new streaming platform as audiences continue to migrate away from traditional TV. The company is a part owner of Hulu - a US-based Netflix rival.