Key Financial Data
- Fiscal Q3 Total revenue: $3.994 billion (-8.6% year-over)
- Distribution revenue: $2.107 billion (+3.3%)
- Advertising revenue: $1.556 billion (-23.6%)
- Content & other revenue: $331 million (+11.8%)
- Net income: $175 million (-50.6%)
- Cable networks revenue: $1.741 billion (+6.4%)
- Television & Tubi revenue: $2.197 billion (-18.8%)
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Fox Corporation reported lower overall revenue during its fiscal third quarter (Q3) driven primarily by the lack of a Super Bowl event on its network and Tubi compared to last year, though the company said reduced sports-related costs helped lift adjusted earnings above the year-ago period.
Revenue for the three months ending March 31 was $3.99 billion, down 8.6 percent from $4.37 billion during the same quarter last year. Net income fell to $175 million from $354 million, while net income attributable to Fox Corporation stockholders dropped to $166 million, or 38 cents per share, from $346 million, or 75 cents per share, a year earlier.
The weaker top-line results were driven largely by advertising revenue, which declined to $1.56 billion from $2.04 billion. Fox said the comparison was affected by the absence of last year’s Super Bowl LIX broadcast, though the decline was partly offset by an additional NFL Wild Card game and continued digital growth, led by the company’s free, ad-supported streaming service Tubi.
Distribution revenue associated with carriage of Fox’s television network and cable channels rose 3.3 percent to $2.11 billion, while content and other revenue increased 11.8 percent to $331 million, helped by higher sports sub-licensing revenue.
Despite the revenue decline, adjusted EBITDA rose 11.4 percent to $954 million, compared with $856 million a year earlier. Adjusted net income attributable to Fox stockholders increased 12.4 percent to $570 million, while adjusted earnings per share rose 20 percent to $1.32. Fox said the gains reflected lower expenses, particularly lower sports programming rights amortization and production costs tied to the absence of the prior-year Super Bowl broadcast. Those savings were partly offset by the additional NFL Wild Card game and costs associated with the launch of Fox One.
Fox CEO Lachlan Murdoch said the quarter demonstrated “continued strength and momentum” across Fox’s 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,” Murdoch said. “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.”
Stock Price
Cable network revenue rose 6.4 percent to $1.74 billion, while segment EBITDA edged up to $884 million, while television revenue — which includes the broadcast network and Tubi as a single unit — fell 18.8 percent to $2.20 billion, largely on account of the lack of a Super Bowl game this year. That said, EBITDA associated with the television segment more than tripled to $191 million as lower sports costs outweighed the revenue decline.
Fox’s stock price was up around 3 percent during early morning trading.
