21st Century Fox Earnings Release for the Quarter Ended September 30, 2016

Twenty-First Century Fox, Inc. (“21st Century Fox” or the “Company” — NASDAQ: FOXA, FOX) today reported financial results for the three months ended September 30, 2016.

The Company reported quarterly income from continuing operations attributable to stockholders of $827 million ($0.44 per share), as compared to $678 million ($0.34 per share) reported in the prior year quarter. Excluding the net income effects of Other, net and adjustments to Equity earnings of affiliates, including adjustments related to Sky plc (“Sky”) and Endemol Shine Group, adjusted quarterly earnings per share from continuing operations attributable to shareholders1 was $0.51 versus $0.38 reported in the same quarter of the prior year.

The Company reported total quarterly revenues of $6.51 billion, a $429 million, or 7%, increase from the $6.08 billion of revenues reported in the prior year quarter. This increase primarily reflects higher affiliate and advertising revenues generated at our Cable Network Programming segment and higher content revenues generated at the Filmed Entertainment segment. The adverse impact of foreign exchange rates impacted quarterly revenue growth by $77 million.

Quarterly total segment OIBDA2 of $1.79 billion increased by $256 million, or 17%, from the $1.54 billion reported in the prior year quarter. This increase was due to higher contributions from both the Company’s Filmed Entertainment and Cable Network Programming segments. The adverse impact of foreign exchange rates impacted quarterly OIBDA growth by $42 million, or 3% in total.

Commenting on the results, Executive Chairmen Rupert and Lachlan Murdoch said:

“We delivered a strong quarter, growing our earnings by double digits on solid revenue gains. Whether it was Fox News rating #1 in basic cable, the 27 primetime Emmy Awards between FX Networks and FOX Broadcasting, producing 3 of the top 5 scripted shows on television, or our robust international growth, we demonstrated strong operational momentum across our global businesses.”

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1 See page 13 for a reconciliation of reported income and earnings per share from continuing operations attributable to stockholders to adjusted income and adjusted earnings per share from continuing operations attributable to stockholders, which may be considered non-GAAP financial measures.

2 Total segment operating income before depreciation and amortization (“OIBDA”) may be considered a non-GAAP financial measure. See page 11 for a description of total segment OIBDA and for a reconciliation from revenues to total segment OIBDA and from total segment OIBDA to income from continuing operations attributable to stockholders.

CABLE NETWORK PROGRAMMING

Cable Network Programming quarterly segment OIBDA increased 6% to $1.38 billion, driven by a 10% revenue increase on higher affiliate and advertising revenues partially offset by a 12% increase in expenses. The increase in expenses was primarily due to higher international sports programming costs in Latin America and India due to the broadcast of the Rio Olympics, higher Major League Baseball sports rights costs at the regional sports networks (“RSNs”) and higher entertainment programming costs at FX Networks. The Cable Network Programming segment first quarter results also included revenue and costs of approximately $85 million related to the inclusion of results from the National Geographic non-channels businesses, which were acquired in November 2015. Foreign exchange fluctuations, primarily in Latin America, adversely impacted segment OIBDA growth by 2%.

Domestic affiliate revenue increased 8% reflecting continued contractual rate increases led by the RSNs, FX Networks, FS1, and Fox News Channel. Domestic advertising revenue grew 6% over the prior year period reflecting higher ratings and pricing at Fox News. Domestic OIBDA contributions increased 9% over the prior year quarter led by higher contributions from FS1 and Fox News.

International affiliate revenue increased 8% driven by strong local currency growth of 16%, with double digit growth reported at both Fox Networks Group International (“FNGI”) and STAR India, partially offset by negative currency impacts from the strengthened U.S. dollar. International advertising revenue increased 6% as local currency growth of 11% led by STAR India was partially offset by negative currency impacts from the strengthened U.S. dollar. Quarterly OIBDA at the international cable channels decreased 7% from the prior year quarter primarily reflecting higher sports programming costs at FNGI and STAR India due to the broadcast of the Rio Olympics and the negative impact of foreign exchange.

TELEVISION

Television generated quarterly segment OIBDA of $191 million which was 3% lower than the prior year’s corresponding result. Quarterly segment revenues were 1% lower than the prior year quarter as lower advertising revenues, reflecting a market shift in advertising spending towards the Rio Olympics and the absence of the prior year broadcasts of the Emmy Awards and the FIFA Women’s World Cup final, were offset by higher retransmission consent revenues, higher local political advertising spending at the Television stations and higher content revenues at the FOX Broadcast Network.

FILMED ENTERTAINMENT

Filmed Entertainment quarterly segment OIBDA of $311 million more than doubled from the $149 million reported in the same period a year-ago. The OIBDA increase was driven primarily by increased contributions from the film studio reflecting lower theatrical releasing costs, the worldwide theatrical performance of Independence Day: Resurgence, the home entertainment performance of Deadpool and higher contributions from the television production business led by the subscription video-on-demand licensing of Homeland to Hulu LLC (“Hulu”). Quarterly segment revenues increased $122 million to $1.91 billion, primarily reflecting higher television production revenue.

REVIEW OF EQUITY EARNINGS OF AFFILIATES’ RESULTS

The Company’s share of equity earnings of affiliates is as follows:

(1) Please refer to Sky’s earnings releases for detailed information.

(2) Primarily comprised of Endemol Shine Group, Hulu and Tata Sky

Quarterly equity earnings of affiliates of $35 million were equal to the amount reported in the same period a year-ago as improved results at Endemol Shine Group and Tata Sky were offset by lower equity earnings for Sky and increased losses at Hulu. The decrease in equity earnings from Sky was a result of the strengthening of the U.S. dollar against the Pound Sterling.

OTHER ITEMS

Share repurchases

On August 3, 2016, the Board of Directors authorized the repurchase of an additional $3 billion of Class A Common Stock, excluding commissions. The Company does not have a timeframe over which the buyback authorization is expected to be completed. The authorization may be modified, extended, suspended or discontinued at any time.

During the quarter, the Company repurchased 16 million shares of Class A Common Stock for $410 million. As a result of the stock repurchase program, diluted weighted average common stock outstanding of 1.86 billion declined 7% from the 2.01 billion in the prior year. As of the end of the quarter, the Company’s remaining buyback authorization was $3.2 billion representing approximately $240 million under the fiscal 2016 authorization and $3 billion under the fiscal 2017 authorization.

To receive a copy of this press release through the Internet, access 21st Century Fox’s corporate Web site located at http://www.21cf.com.

Audio from 21st Century Fox’s conference call with analysts on the first quarter results can be heard live on the Internet at 4:30 p.m. Eastern Daylight Time today. To listen to the call, visit http://www.21cf.com.

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory factors. More detailed information about these and other factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward-looking statements” included in this document are made only as of the date of this document and we do not have any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, except as required by law.

NOTE 1 – TOTAL SEGMENT OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION

The Company evaluates the performance of its operating segments based on segment operating income before depreciation and amortization (“OIBDA”), and management uses total segment OIBDA as a measure of the performance of operating businesses separate from non-operating factors. Total segment OIBDA may be considered a non-GAAP measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements. This measure excludes items, such as depreciation and amortization as well as impairment charges, which are significant components in assessing the Company’s financial performance.

Management believes that total segment OIBDA is an appropriate measure for evaluating the operating performance of the Company’s business and provides investors and equity analysts a measure to analyze operating performance of the Company’s business and enterprise value against historical data and competitors’ data. Segment OIBDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources to the Company’s business segments.

Segment OIBDA does not include depreciation and amortization and the amortization of cable distribution investments and eliminates the variable effect across all business segments of depreciation and amortization. Depreciation and amortization expense includes the depreciation of property and equipment, as well as amortization of finite-lived intangible assets. Amortization of cable distribution investments represents a reduction against revenues over the term of a carriage arrangement and, as such, it is excluded from segment operating income before depreciation and amortization.

In addition, total segment OIBDA does not include: Loss from discontinued operations, net of tax, Equity earnings of affiliates, Interest expense, net, Interest income, Other, net, Income tax expense and Net income attributable to noncontrolling interests.

The following table reconciles revenues to total segment OIBDA and from total segment OIBDA to Income from continuing operations attributable to stockholders:

NOTE 2 – ADJUSTED NET INCOME AND ADJUSTED EPS FROM CONTINUING OPERATIONS

The calculation of income and earnings per share (“EPS”) from continuing operations attributable to stockholders excluding the net income effects of Equity affiliate adjustments and Other, net and tax provision effects (“adjusted income and diluted EPS from continuing operations attributable to stockholders”) may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted income and diluted EPS from continuing operations attributable to stockholders are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income and EPS as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The Company uses adjusted income and diluted EPS from continuing operations attributable to stockholders to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period.

The following table reconciles reported income and reported diluted EPS from continuing operations attributable to stockholders to adjusted income and diluted EPS from continuing operations attributable to stockholders for the three months ended September 30, 2016 and 2015.