Fox reports $3 billion in revenue, spurred by growth at Tubi

The logo of Fox Corporation’s free streaming service Tubi. (Image via Tubi app on Rokui, Graphic by The Desk)

Fox Corporation’s bet on free, ad-supported streaming is starting to pay off big time.

On Tuesday, Fox Corporation beat Wall Street revenue estimates for its most-recent financial quarter, revealing the company brought in $3.19 billion over the last three months from its various media properties.

Fox executives cited increased growth at its free, ad-supported streaming service Tubi as one element of its overall success last quarter. Tubi helped lift Fox’s advertising revenue to $1.22 billion for the quarter, up from $1.13 billion reported this time last year. Fox acquired Tubi for $440 million two years ago.

Political advertising on Fox-owned local stations and cable channels, including the Fox News Channel, also helped lift Fox’s advertising revenue for the period.

“Once again, Fox delivered solid operational and financial results in our fiscal first quarter,” Lachlan Murdoch, Fox Corporation’s chairman and chief executive, said in a statement. “These results demonstrate the continued strength of our established businesses along with the momentum across our digital portfolio.”

On a conference call with investors, Murdoch said Tubi’s advertising revenue surpassed that of its flagship Fox Entertainment portfolio for the first time, confirming a prediction made by Fox’s top finance executive nearly two years ago.

Tubi’s ad revenue is lumped in with that of Fox’s 29 owned-and-operated broadcast stations, as well as the Fox broadcast network. According to financial information reports reviewed by The Desk, that sector of the company generated $905 million in revenue for Fox, up from $819 million last year.

Affiliate fee revenue, which is paid by broadcasters like Nexstar, Sinclair and TEGNA for carrying Fox programming on some of their local stations, rose to $682 million this quarter, up from $641 million last year.

Revenue from Fox Corporation’s broadcast and streaming properties was larger than its cable networks, the company reported on Thursday. Fox’s cable networks include the Fox News Channel, Fox Business Network, Fox Sports 1 and Fox Sports 2. Fox Corporation generated $1.029 billion in fees from cable, satellite and streaming providers who carry Fox cable channels, up from $1.026 billion last year. Ads aired on Fox’s cable channels brought in $316 million in revenue, up from $311 million last year.

Fox Corporation’s quarterly profit was reported at $1.09 billion, up 3 percent from last year. The company said its expenses increased during the quarter due to an increased financial investment in digital properties connected to its Fox News Media segment, which includes Fox Weather and Fox Nation, as well as an increase in fees Fox has to pay for certain sports rights on its broadcast and cable networks.

“While we are mindful of current macroeconomic conditions, the durability of our brands and Fox’s ability to deliver audiences at scale position us well to navigate this uncertainty while continuing to create value for our shareholders,” Murdoch said.

Key Data:

  • Cable Networks (Fox News, Fox Business, Fox Weather, etc.):
    • Overall revenue: $1.431 billion (up from $1.416 billion)
    • Carriage fee revenue: $1.029 billion (up from $1.026 billion)
    • Advertising revenue: $316 million (up from $311 million)
  • Television (Fox broadcast, Tubi, MyNetwork, etc.)
    • Overall revenue: $1.714 billion (up from $1.581 billion)
    • Affiliate fee revenue: $682 million (up from $641 million)
    • Advertising revenue: $905 million (up from $819 million)

Note: “up from” figures reflect year-over-year increase or decrease.