Fox Sees March Quarter Revenue Dip Without Super Bowl as It Prepares for the World Cup
Fox Reports Decline in Fiscal Third Quarter Revenue Amid Ad Sales Challenges
Fox Corporation announced a total revenue of $3.99 billion for its fiscal third quarter, which ended in March. This marks a decrease from $4.37 billion during the same period last year, primarily due to declining ad sales influenced by the absence of the Super Bowl this year.
Distribution revenue experienced a modest increase of 3%, driven by a 5% rise in the cable network programming segment. Advertising revenue fell to $1.56 billion, down from $2 billion, largely due to comparisons from last year’s Super Bowl. However, this decline was partially cushioned by the impact of an additional NFL Wild Card game and continued digital growth at Tubi.
Revenue from content and other segments rose by 12%, attributed to higher sports sub-licensing sales.
CEO Lachlan Murdoch remarked, “Our fiscal third quarter results once again demonstrate continued strength and momentum across our business. This strong performance, led by robust core advertising trends, underscores FOX’s leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi. Against this backdrop, we are proud to be bringing the world’s biggest sporting event to American homes with the FIFA Men’s World Cup hosted here in North America across June and July. Meanwhile, we remain steadfast in our commitment to delivering long-term shareholder value supported by our strong balance sheet.”
Adjusted EBITDA reached $954 million, an increase of $98 million or 11%, as lower expenses offset the revenue decline. However, net income dropped to $175 million from $354 million.
Fox executives are set to discuss the financial results in a call scheduled for 8:30 am ET.
