LOS ANGELES _ The mounting sexual harassment claims at Fox News that led to the dismissal of Bill O'Reilly and an exodus of advertisers has dominated headlines and cast a shadow over parent company 21st Century Fox in recent weeks.
But the controversy, which erupted last summer, so far has done little to dampen the media giant's earnings growth.
That was apparent Wednesday when 21st Century Fox easily beat earnings expectations for the fiscal third quarter, which ended March 31, though shares of the media conglomerate fell in extended trading Wednesday after the company reported weaker-than-expected revenue.
New York-based Fox reported adjusted earnings of 54 cents per share, up 15 percent from 47 cents in the year-ago quarter. Revenue was $7.56 billion, up 5 percent. Analysts polled by FactSet had expected earnings of 48 cents per share on revenue of $7.63 billion.
The company's Fox News division has been roiled in recent weeks as leaders faced calls for the dismissal of O'Reilly, the cable channel's highest-rated anchor. O'Reilly, who was accused of sexual harassment by several former employees and on-air personalities, was fired from Fox News in April.
His firing was followed by the departure of Fox News co-President Bill Shine, who resigned this month over public criticism of how he handled sexual harassment claims against O'Reilly and former Chief Executive Roger Ailes, who left the channel last year.
The cable channel has been shaken by sexual harassment complaints since former anchor Gretchen Carlson filed a lawsuit against Ailes in July. The suit, which was settled for $20 million, led to Ailes' ouster.
Facing pressure from activists, several advertisers pulled commercials from Fox News' "O'Reilly Factor." Ratings for the time slot have dropped since O'Reilly was replaced by Tucker Carlson but have remained steady among the 25-to-54 age group coveted by advertisers. Advertisers have also returned.
Still, the business impacts could be felt elsewhere. Fallout from the scandal could put Fox's plan to acquire the European satellite TV service Sky in jeopardy. An attorney representing plaintiffs in sexual harassment and racial discrimination cases has been invited to appear before the Office of Communications, the British regulatory body reviewing the potential deal.
On Wednesday, Fox dismissed speculation that the deal was in trouble.
"We remain confident the proposed transaction will be approved by the end of the calendar year following a thorough review process," Executive Chairmen Rupert and Lachlan Murdoch said in a statement Wednesday.
Revenue for the quarter was weaker than expected due largely to Fox's movie division. Although Los Angeles-based 20th Century Fox had a hit with the superhero-themed "Logan," it faced tough comparisons to the year-earlier quarter because of the success of "Deadpool."
The division also had a box-office bomb with "A Cure for Wellness," a psychological horror movie that grossed slightly more than $8 million domestically.
Analysts weren't expecting much of an earnings impact from the O'Reilly departure.
"Fox News's dominance stems from the consistency of its messaging and the loyalty of its broader audience more than from the success of star anchors," wrote Vijay Jayant, an analyst at Evercore ISI, in a recent research report.
