A stock picker’s guide to Twenty-First Century Fox Inc in 2014

Expectations of growth are running high for investors in Fox.

| More on:
a woman

It seems to be a never-ending roundabout for shareholders in Twenty-First Century Fox Inc (ASX: FOX) with the global media giant that is headed by billionaire Rupert Murdoch announcing yet another change in its corporate structure.

During 2013 Fox demerged its news and publishing assets into the separately listed News Corp (ASX: NWS), while retaining the film and television assets within Fox. This led to two distinct businesses – Fox which was seen by many as housing the growth assets and News Corp which was viewed as having been lumped with the old world declining media assets.

The demerger was a major undertaking and after just a few months of relative calm, Murdoch then announced Fox would seek to remove its ASX listing and consolidate its trading on the NASDAQ stockmarket. This has been seen as a blow for the local bourse and for Australian investors with the ASX losing one of its largest companies, while many fund managers will be forced to sell a high-quality company due to restrictions on holding overseas stocks. (The delisting is expected to occur around May 2014).

Growth continues

It is indeed a shame that some investors will lose the opportunity to own stock in Fox. For the first quarter of FY 2014 Fox reported an 18% increase in revenue to US$7.06 billion. Around half of the growth in revenue was attributable to Cable Network Programming, Filmed Entertainment and Television divisions. The other half of growth was due to the inclusion of revenue from Sky Deutschland.

Growth in Fox’s dividend has also been strong with the company declaring a final dividend for FY 2013 of US12.5 cents per share – a 47% increase on the prior period.

Foolish takeaway

Murdoch reaffirmed the company’s aim to grow operating income before depreciation and amortisation to US$9 billion by 2016. Based on an annualised run rate from the first quarter, this implies growth of 39% over the next two years. If this target is met, it would be an exceptional achievement for such a large company.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tim McArthur owns shares in Twenty-First Century Fox Inc.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

The share price of ASX infant products retailer Baby Bunting Group Ltd (ASX:BBN) has been a solid performer so far …

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

A new landmark report by the Intergovernmental Panel on Climate Change (IPCC) was released earlier this week. It provided a …

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest …

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos Limited (ASX: AMS) share price has been on a tear this past week, rising 15% on the back …

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) had a breakout year in 2020, moving from relative obscurity …

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

Shares in ASX healthcare company Polynovo Limited (ASX: PNV) almost doubled in price last year. And, despite a shaky start …

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

Investing in other geographic markets has become a popular way to diversify a portfolio. The risks associated with being exposed …

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

Despite the News Corporation (ASX: NWS) share price getting a 31% bump between November last year and today, News Corp …

Read more »