Fox Corp. Continues Strong Performance in Fall Quarter with Surprising Revenue Gains Despite Fewer Political Ads
Fox Corp. exceeded revenue expectations in the October-to-December quarter, bolstered by a seven-game World Series and sustained performance from Fox News and streaming platform Tubi.
The company reported on Wednesday that total revenue for the fiscal second quarter rose 2% year-over-year, reaching $5.18 billion. Earnings per share stood at 52 cents, or 81 cents when adjusted for one-time gains and expenses.
Analysts on Wall Street had projected earnings per share of 52 cents and revenue of $5.03 billion.
Advertising revenue saw a modest increase of 1%, despite challenging comparisons due to the upcoming 2024 presidential election cycle. Increased pricing for sports and news coverage, particularly from postseason baseball games, helped counterbalance lower ratings and political deficits.
Distribution revenue grew by 4%, primarily driven by a 5% increase within the Cable Network Programming unit. Content and other revenues remained approximately stable compared to the previous year’s quarter.
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In the Television division—encompassing the broadcast network, local stations, and Tubi—revenue dipped slightly to $2.937 billion. This decline is noteworthy, given that the fall quarter typically features marquee events such as college football and NFL games.
Distribution revenues increased by 1%, attributed to higher average rates at owned television stations and increased fees from third-party Fox affiliates. Content and other revenues fell to $142 million from $175 million a year earlier, largely due to a reduction in entertainment content driven by delivery timing.
EBITDA for the Television division decreased to $143 million from $205 million in the same period last year, attributed to rising expenses. The higher costs were primarily linked to increased amortization of sports programming rights and production expenses, though they were somewhat offset by lower costs associated with entertainment programming.
CEO Lachlan Murdoch described the results as “a product of both a highly differentiated strategy and high quality execution that reflect the power of our leadership brands across news, sports, streaming and entertainment.”
