Fox Corp. Revenue Sees Dip in Fiscal Third Quarter
Fox Corp. experienced a decline in revenue for its fiscal third quarter, with sales totaling $3.45 billion, in line with Wall Street expectations. This figure represents a decrease from the $4.1 billion reported in the previous year. The drop in revenue can be attributed to a decrease in advertising revenue, largely due to tough comparisons with the Super Bowl broadcast from the previous year.
Despite the decrease in revenue, net income for the March quarter saw a significant increase, soaring to $704 million compared to a $50 million loss in the previous year. This increase in net income was primarily driven by the absence of a substantial charge associated with legal settlement costs at Fox News. Fox News recently paid close to $800 million to settle a lawsuit brought by Dominion Voting Services.
Affiliate fees rose by 4% in the third quarter, benefiting from recent renewals. However, advertising revenue saw a notable decline, totaling $1.24 billion compared to $1.88 billion in the prior year quarter. This decrease in advertising revenue was primarily due to the absence of the Super Bowl LVII broadcast from the previous year and a reduction in NFL games aired on Fox Sports. Without these comparisons, total ad revenue would have increased by a few points.
CEO Lachlan Murdoch expressed confidence in Fox’s unique strategy, highlighting the strength and leadership of the company’s core brands. Murdoch emphasized the value of live content and must-have event programming to audiences, advertisers, and distribution partners. He also noted the company’s investments in innovation, particularly in the digital portfolio led by Tubi. The company’s balanced capital allocation approach, supported by a strong balance sheet, positions Fox to drive long-term value creation for shareholders.
Executives are set to discuss the financial results and outlook in a call scheduled for 8:30 AM. These results reflect Fox Corp.’s ability to navigate challenges in the advertising market and maintain a strong financial position amidst changing industry dynamics.
Original Story at deadline.com – 2024-05-08 12:30:00
